Downward pressure on food inflation as crude oil rates fall

NEW DELHI: Chief Economic Adviser Arvind Subramanian today said that there seems to be real downward pressure on food inflation due to fall in international crude prices and deceleration in rural wages.

"... there seems to be real downward pressure on food inflation as well. And the reason of course is international crude prices are coming down and partly also the fact that the rural wages have decelerated quiet sharply," Subramanian told reporters here.

Food inflation in January was 6.13 per cent, according to official data.

The price of the Indian basket of crude oil on May 26, 2014, the day the Narendra Modi-led government sworn in, was $108.05 per barrel. It had fallen by around 60 per cent to $43.36 per barrel by January 14, 2015.