India's food inflation slows down

NEW DELHI - India's food inflation eased to a two-month low in early February, providing relief to consumers and the government amid rising anger over the cost of living.

Food inflation, measured on a weekly basis, fell to 11.05 percent for the week ending February 5 from a year earlier, according to commerce ministry figures released on Thursday.

Food inflation had dropped nearly four percentage points to 13.07 per cent in the previous week.

On Wednesday, Prime Minister Manmohan Singh said overall inflation would come down to "no more than seven percent" by the end of March.

Singh warned however that high inflation -- particularly in food prices -- was threatening India's rapid economic growth.

"Oil prices are rising, the food prices are rising, commodity prices are rising. We have to deal with inflation despite an adverse international environment," he told a meeting of news editors.

India's annual budget will be announced on February 28. The government is expected to announce several measures to boost productivity, food crops and dairy production.

A weekend opinion poll published by India's biggest circulation English-language daily The Times of India found inflation was beginning to "seriously hurt" family household budgets.

Reflecting rising public unhappiness, six out of seven respondents blamed the ruling Congress-led national government or state administrations -- or both -- for climbing costs.