Food inflation fell to 9.18% for the week ended March 26, the lowest level in almost four months, on the back of a decline in the prices of pulses.
Food inflation stood at 9.50% in the preceding week. The last time food inflation was lower than this level was during the week ended November 27 last year, when it was registered at 8.69%.
The latest numbers also mean that food inflation is in single digits for the second consecutive week.
During the week under review, prices of pulses fell by 5.39% on an annual basis.
However, other food items continued to exhibit an upward trend in terms of the rate of price rise.
Fruits became dearer by 25.40% year-on-year, while eggs, meat and fish became 12.80% more expensive during the week under review. Milk was also up by 3.87%.
On an annual basis, cereals became dearer by 3.62%, while rice and wheat were up by 2.08% and 0.29%, respectively.
Vegetables were up by 11.41%. Potatoes became 5.30% costlier and onion prices went up by 8.48%.
During the week under review, inflation in non-food articles was 27.56%. Fibres became dearer by 86.90%, while fuel and power were up by 13.13%.
Petrol became dearer by 23.14% on an annual basis.
Food inflation was in double digits for most of the last fiscal. However, it has shown signs of slight moderation since the last week of February.
The government had earlier said that rising food prices were one of the major reasons for overall inflation remaining high. Headline inflation was 8.31% in February.
The government had yesterday said that India's foodgrains production is estimated at a record 235.88 million tonne in the 2010-11 crop year, ending June, on the back of the highest-ever output of wheat and pulses.
Experts have said this is likely to put a brake on the high food inflation numbers.
