New Delhi: The current trend in inflation in India is a result of a shortage of food items and not due to a demand-push factor, Union finance minister Pranab Mukherjee told Parliament on Tuesday.
The food articles index rose an annual 15.6% as at 14 November, up from the previous week’s 14.6% rise. The weakest monsoon since 1972 and then floods in parts of the country have hurt farm output and pushed up food prices.
The finance minister said the government is keeping a close watch on futures trading in commodities.
The Centre is planning massive investment to boost farm output, the minister said.