Headline inflation remained stubbornly steady at 9.73 per cent in October this year to accord no relief to the common man, despite the various supply-side and monetary measures taken by the government and the Reserve Bank of India (RBI) in over the last few months.
Instead of showing even a slight moderation, WPI (wholesale price index) based overall inflation, in fact, inched up a tad during the month from 9.72 per cent in September owing to the hike in prices of fuel (petrol), higher prices of manufactured goods and food items such as fruits, milk and vegetables.
In October 2010, headline inflation was lower at 9.08 per cent. Finance Minister Pranab Mukherjee attributed the near double-digit headline inflation to the food price spiral and pointed out that the fall in prices of primary articles was getting offset by the surge in prices of certain food items.
However, he expected farm goods prices to soften soon following a good monsoon.
“For seven months, from April to October, 2011... main reason for high [headline] inflation is food inflation ...There has been a substantial increase…I do hope that the full impact of the good monsoon will be felt and steps we have taken to improve the supply side will yield results,” Mr. Mukherjee said.
