Pranab hopeful of further decline in inflation in coming weeks

New Delhi, June 2 (PTI) With weekly inflation figures
showing a marginal decline, Indian Finance Minister Pranab
Mukherjee on Thursday exuded confidence that the rate of price
rise would moderate further in the days ahead.
"The important figure is the non-food WPI. There is
practically a two percentage point decrease from 23.22 per
cent to 21.31 per cent (in it). My comment is that there will
be a moderation on inflation," he told reporters.
While inflation of food items, as measured by the
Wholesale Price Index (WPI), fell to 8.06 per cent during the
week ended May 21 from 8.55 per cent in the previous week,
inflation of non-food primary articles dropped to 21.31 per
cent during the week under review, as against 23.22 per cent
in the previous 7-day period.
If the declining trend in food items and non-food primary
items articles continues, Mukherjee said, "It would be
possible to have a moderate rate of inflation."
The minister, however, cautioned against high crude oil
prices in the international market, as they could have a
bearing on domestic inflation.
Following the decision of the oil marketing companies to
raise prices of petrol by Rs 5 per litre from May 15, the
index for petrol shot up by 32 per cent during the week.
Global crude prices are currently above USD 100 per
barrel, mainly on account of the conflict in the Middle East
and North Africa.