Food inflation to moderate by mid-Nov: Montek

New Delhi, September 30: The Plan panel today expressed concern over high milk and fruit prices but exuded confidence that food inflation, which has shot past 16 per cent in mid- September, would moderate by the second half of November.

“It (food inflation) is little high. The high rate of food inflation is mainly on account of milk and fruits. If you see cereals, the inflation rate is coming down. The inflation rate of milk is a matter of concern,” Planning Commission Deputy Chairman Montek Singh Ahulwalia told reporters here.

He however added: “I am still hopeful that the base effect (the period with which the figures are compared) would show up in form, of much more moderate inflation not until November. You will see food inflation going down significantly by mid or second half of November,”

Food inflation climbed 0.98 percentage points to 16.