After a gap of almost two months, inflation dipped marginally to 0.7 per cent, but there is no respite for people as prices of items of common consumption like potato and vegetables continue to rule high.
The 13-basis point slide in inflation over 0.83 per cent in the previous week was on account of a slight easing of prices of certain items like poultry chicken, bajra, fruits, arhar (dal) and spices.
The common man has been hit hard by the rising prices of potatoes and vegetables which have soared by 81 per cent and 43 per cent respectively in the past one year. At the same time, pulses have got dearer by 20 per cent and rice by 17 per cent.
The wholesale price-based inflation was at 0.83 per cent in the previous week compared to 12.08 per cent during the corresponding week a year ago.
Food prices are likely to go up in the coming weeks as floods in the southern states of Karnataka and Andhra Pradesh have destroyed crops, analysts said.
Commenting on inflation, Planning Commission deputy chairman Montek Singh Ahluwalia had said, "Food price inflation is the principal area of inflation, which is a cause of concern. But one cannot really say that has triggered inflation, as overall inflation is very low."
