New Delhi: Food inflation fell sharply by 2 percentage points to 10.3 per cent for the week ended November 6 from 12.3 per cent in the previous week, raising hopes that overall inflation may decline to around 6 per cent by the end of the year, as predicted by the government.
Inflation stood at 13.99 per cent in the corresponding period last year. This is the first time in a long time that food inflation for a particular period was lower than the corresponding period of the previous fiscal.
The decline may prompt RBI to halt its monetary tightening drive to boost industrial growth, which had fallen to a 16-month low of 4.4 per cent in September.
The price of most food items declined during the week on improved availability after the end of the monsoon.