Food inflation dropped to 17.81 %towards the end of February, but fuel inflation shot up due to a hike in excise and customs duty in the Budget.
Food inflation declined by 0.06 percentage points during the week ended February 27 from 17.87 %in the previous week.
Though a range of essential items still continue to be expensive, the rate of price rise has been falling for some time now. The declining trend, if sustained, would buttress the government's confidence that prices will start easing from April onwards.
On year-on-year pulses were dearer by 33.38%, slightly lower than over 35 %in the previous week, while potatoes turned costlier by 22.46%. Onion rose by just 2.98%.
Overall vegetable prices shot up by 15.61%, while milk prices was up 15.31% and fruits 11.77%.
The budgetary announcement of a hike in excise and customs duty on petrol led to an increase in its prices by six % on weekly basis. On yearly basis, petrol prices rose 16.82%.
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