New Delhi: India’s worryingly high inflation should ease as there are indications of a cooling in high food prices that have been driving it, Union finance minister Pranab Mukherjee said on Wednesday.
Annual wholesale price inflation in March touched a 17-month high of 9.90%, prompting the Reserve Bank of India to raise rates in April, its second such move in as many months.
Mukherjee said the recent moves by the central bank to tighten monetary policy should anchor inflationary expectations.
“What the most worrisome feature of the economy is inflation, which agitates the house and people outside the house. I share the concern of honourable members,” Mukherjee told Parliament as part of discussions on the Budget.
Mukherjee has earlier said inflation would ease in the next few months when the summer crop is harvested and on indications of a good monsoon.
Earlier on Wednesday, a government adviser said inflation had peaked and would likely be below 9% in April.
High prices of grains, lentils, sugar and edible oils have sparked street protests.
Last week, the main opposition Bharatiya Janata Party rallied at least 100,000 people to the capital to protest against high food prices.