New Delhi: Declining prices of potato and pulses pulled down food inflation marginally to three-and-half month’s low of 9.42 per cent on March 5 from 9.52 per cent in the previous week, a trend which the experts say is likely to continue in the coming weeks.
“Now the main pressure will be from non-food items like fuel. The moderation in price rise of food items is likely to persist,” said Crisil chief economist D K Joshi.
However, despite the climb down, commodities like fruits, milk and protein-based items, continue being expensive.
Further, experts tell that with easing food prices, it is the high fuel prices that concern the government.
Unrest in Middle East and North Africa region had pushed international crude prices to a 30-month high of USD 120 per barrel some two weeks back. They are at present trading at USD 100 a barrel.