Declining trend in inflation evident, says Pranab Mukherjee

Buoyed by the fall in food inflation during the first week of May, the government on Thursday said there is a trend of moderation in the rate of price rise in both the food and non-food segments.

"Both in food inflation and overall Whole Price Index (WPI) inflation, there is a declining trend," Finance Minister Pranab Mukherjee told reporters in the national capital.

His comments came after food inflation slipped to 7.47 per cent for the week ended May 7, continuing on its downward trajectory for the third consecutive week. This is the lowest food inflation figure since separate data on the rate of price rise of food items was first released about 18 months ago.

The fall in food inflation, as measured by the Wholesale Price Index (WPI), from 7.70 per cent in the previous week was mainly due to cheaper pulses, wheat and vegetables.

Mukherjee said inflation has come down in all three segments - primary articles, food and non-food.