Inflationary pressure remains a concern: Pranab

Inflationary pressure remains a concern: Pranab

New Delhi: Finance minister Pranab Mukherjee on Tuesday expressed concern over inflationary pressure on food prices, but said the Reserve Bank of India (RBI) and his ministry will take appropriate action as and when needed.

“Inflationary pressure is still there because food prices have gone up because of the erratic monsoon and certain other things," Mukherjee told reporters here.

The wholesale price index (WPI) for the month of August stood at 8.51%, as per the new series of inflation based on 2004-05 prices released by the government on Tuesday.

“The RBI is constantly watching the situation. We are in touch with the RBI. The RBI and the Ministry of Finance will take appropriate measure at the appropriate time," he added.

As per the old series, WPI inflation stood at 9.5% in the month of August.

“I do hope that annual inflation would be much lower and it will be much below in the new series at 8.5% in the annualized rate... I think it be well below in the annualized rate," he added.

As per commerce ministry data, food articles became 14.64% dearer in August year-on-year, while prices of non- food articles likes fibre and oilseeds soared by 16.04%. Minerals became 23.82% more expensive.

As per the old index, which considered 1993-94 as the base year, inflation remained in double digits for five straight months till June. It fell to 9.97% in July.