Food inflation turns negative

New Delhi, January 5, 2011 : Food inflation turned negative for the first time in nearly six years, raising hopes that the RBI might ease back on lending rates soon. The wholesale price index for food articles plunged to -3.36 per cent as on December 24, on the back of a sharp fall in the price of mass consumption vegetables such as onions and potatoes, as well as moderate easing in wheat and some other non-pulses food articles. Looking ahead, further falls in inflation are likely to continue.