Economy

Inflation disturbing; food prices to ease soon: FM

A file picture of Union Finance Minister Pranab Mukherjee. Photo: PTI

A file picture of Union Finance Minister Pranab Mukherjee. Photo: PTI  

The government on Wednesday described as disturbing the surge in inflation but was also confident that food prices that were fuelling price rise, would ease in a few months - by when the rabi crop will reach the market.

“That is (rising inflation) is a matter of concern, no doubt...I am afraid...8.5 per cent wholesale price index rise is disturbing,” Finance Minister Pranab Mukherjee told reporters on the sidelines of a seminar on transfer—pricing.

He, however, exuded the confidence that inflation rate will ease in the next few months.

Inflation rose to over a 13-month high of 8.56 per cent in January from 7.31 per cent a month ago, driven mainly by higher food prices.

Food inflation rose for the third successive week and moved closer to 18 per cent in the week ended January 30.

“We have taken adequate measures on the supply side which will take some time to have the pressing impact on rising prices particularly of essential commodities. I do hope that over a period of few months, it will be possible to have the moderate rate of inflation,” Mr. Mukherjee said.

Rabi (winter) crop is expected to hit the market starting next month and will considerably ease the price situation.

The government has already made an ad—hoc allocation of 10 kg of foodgrains each to all ration card holders in January and February over and above the existing quota, among other steps, to insulate inflation from hurting the common man.

Why you should pay for quality journalism - Click to know more

null
Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Feb 24, 2020 12:38:31 PM | https://www.thehindu.com/business/Economy/Inflation-disturbing-food-prices-to-ease-soon-FM/article16815079.ece

Next Story