Pranab hopeful of further decline in inflation

New Delhi, Aug 16 (PTI) Finance Minister of India Pranab
Mukherjee expressed confidence that inflation would come down
further even as the rate of price rise after a gap of five
months came down in single digit at 9.97 per cent in July.
"Of course, it will moderate," he told reporters, when
asked about the possibility of inflation sliding further in
coming months.
"Policy rates had some impact (on sliding inflation)
but there are also base factors," Mukherjee said expressing
satisfaction over declining inflation.
The Minister attributed slide in inflation of food items
to seasonal factors "particularly in respect of some food
items like fruits, vegetables and milk".
After remaining in double digits since February, the
wholesale price-based inflation fell to single digit at 9.97
per cent in July, owing to decline in prices of certain food
and non-food items.
The inflation was at 10.55 per cent in June, while for
May it was revised upwards to 11.14 per cent from the
provisional number of 10.16 per cent. Inflation entered the
double digits in February when it climbed to 10.06 per cent,
as per the final figures.
Inflation has become a political sensitive issue with
the Opposition raising in within and outside Parliament. Led
by National Democratic Alliance, the opposition parties
organised an all India strike on July 5 to protest against
rising inflation and the hike in prices of petroleum products.
PTI MG
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