Mukherjee hopes food inflation will decrease

New Delhi, May 12: Union Finance Minister Pranab Mukherjee today said that we hope to see further moderation in food inflation in the coming weeks.

Mukherjee said that sustained high non-food primary prices are creating cost-push inflationary conditions in the manufacturing sector. Thus, even though food inflation is declining, the concern on higher core inflation remains.

Emphasising that the recent monetary policy announcements should help in addressing these concerns, Mukherjee said that the provisional Whole Sale Price Index data for Primary Articles and Fuel and Power for the week ending April 30, 2011 has been released.

He said that the year-on-year inflation in food articles was 7.70 per cent.

“It has declined near continuously in the month of April 2011 over the same month last year, the decline being sharper in the second half of the month,” he added.

Mukherjee said that, however, non-food articles continue to exhibit high inflation in the range of 25 to 28 per cent over the past many weeks.

He said that this has made the overall inflation in primary articles sticky and it remains in double digits at 11.96 per cent for the week ending April 30, 2011. (ANI)