Easing food burden

It all began with food; it shall now hopefully end with food. For 23 months in a row since January 2010, the all-commodities wholesale price index-based inflation rate has ruled at eight per cent or above. But the annual inflation in food articles has hovered around those levels even longer from September 2008 or 39 months. The good news is that we are beginning to see a considerable easing of food inflation. From an average of 8.5 per cent in November, it has successively fallen to 0.4 per cent for the week ended December 17, and could well hit negative territory for the subsequent week. Importantly, this decline is not entirely due to the so-called high-base effect. 

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