(Image source from: Inflation falls to 5-year low of 3.74 per cent})

The Modi-led NDA government seems to be fulfiling some of its promises. The high food inflation seems to have been curbed to quite an extent. Essential food items that had become untouchable just a few months ago are now affordable again.

Thanks to prompt and stringent regulation over black marketeers by the Modi government, inflation has come down to a 5-year low of 3.74 %.

The wholesale inflation fell sharply to 3.74 % in August, which is a five-year low, due to the decline in vegetable prices and prices of other food items.

The corresponding inflation figures, measured on Wholesale Price Index (WPI), for July 2013 was 5.19 % and for August 2013 it was 6.99 %.

In the food segment there was a significant decline of inflation to 5.15 % in August, which was 8.43 % in the previous month, according to reports

The WPI inflation for August 2014 has been the lowest since October 2009, when inflation was just 1.8 %.

Price of vegetables declined by 4.88 %, in the third consecutive month of decline. Onion prices that had been a major problem has maintained a downward spiral, declining by 44.7 % during the last few months.
Potato prices are still on the rise and this universal vegetable saw an inflation to 61.61 % from 46.41 % in July.

Even the fruits basket inflation reduced to 20.31 % in August.

While the price of food items like meat, fish and egg declined in August, but the inflation in milk and pulses went up to 12.18 % and 7.81 %, respectively, compared to July.

(AW: Pratima Tigga)