Food inflation falls to 12.92%

Food inflation fell sharply to 12.92 per cent for the week ended June 19 from 16.90 per cent in the previous week as cost of cereals and vegetables declined.

On a yearly basis, potatoes became cheaper by about 40 per cent and onion prices eased by over 7 per cent.

Prices for pulses fell by 0.47 per cent on a weekly basis.

However, on an annual count, prices soared by 31.57 per cent. Overall inflation for May was 10.16 per cent, led by high food prices.

Food inflation has remained above the 16 per cent level for most part of the year.

Analysts expect prices to slide in the coming months following a good monsoon shower.