Rising inflation a matter of concern: Pranab (Lead)

December 14th, 2009 - 10:06 pm ICT by IANS  

Pranab Mukherjee New Delhi, Dec 14 (IANS) Finance Minister Pranab Mukherjee Monday said the rise in inflation, primarily due to increase in food prices, was a matter of concern.
“This is a matter of concern. There is an inflationary pressure, particularly in food items,” he told reporters.

India’s annual rate of inflation, based on wholesale prices, rose sharply to 4.78 percent in November from 1.34 percent in the previous month, mainly on account of a 16.71 percent jump in prices of food articles, according to the statistics released by the industry ministry Monday.

The annual inflation rate was 8.48 percent during the same month last year.

Data on the official wholesale price index released Monday showed that over the past year, prices of potatoes year-on-year increased over 101 percent while onions and pulses have become dearer by 32.41 and 35.22 percent, respectively.

Similarly, vegetables have become costlier by 16.92 percent, rice by 12.95 percent, wheat by 12.66 percent, milk by 11.49 percent and fruits by 10.64 percent, according to the statistics released by the industry ministry.

During the 12-month period under review, the index for manufactured products was up 1.2 percent while that for fuels, the other major commodity group, declined marginally due to lower prices of light diesel oil (3 percent) and naphtha (2 percent)

The Reserve Bank of India and the government have warned India’s annual inflation rate based on wholesale price index for all commodities will rise to 6-6.5 percent by March, while the Prime Minister’s Economic Advisory Council has pegged the rate at 6 percent.

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