Food inflation eased to its lowest level in nearly four months, with pulses, potatoes, milk and poultry products contributing to the slide.

The annual food inflation, based on the Wholesale Price Index, rose 9.18 per cent during the week ended March 26, sharply lower than the previous week's annual rise of 9.50 per cent. Fuel inflation was steady at 13.13 per cent, Government data released on Thursday showed. According to analysts, while prices of cereals and pulses are likely to see a further moderation in the next few weeks, a favourable base effect is also expected to contribute to the declining trend in the coming weeks.

During the latest reported week, the primary articles price index was up 12.97 per cent, compared with an annual rise of 12.98 per cent a week earlier. Pulses dipped by 5.39 per cent on an annual basis, as against a 4.4 per cent decline in the previous reported week.

Milk was up 3.87 per cent (down from the 5.87 in the previous week), while the eggs, meat and fish category recorded an inflation of 12.80 per cent (15.34). Fruits were up 25.40 per cent year-on-year while cereals surged 3.62 per cent, even as rice and wheat were up by 2.08 per cent and 0.29 per cent, respectively. Vegetables rose 11.41 per cent while potatoes were up 5.30 per cent and onions by 8.48 per cent.

In week-on-week terms, though, a sequential decline in the prices of cereals and pulses was made up for by an increase in the prices of vegetables, fruits, coffee and eggs, meat and fish.

The headline inflation had unexpectedly quickened an annual 8.31 per cent in February from 8.23 per cent in January.

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