High inflationary regime not acceptable, says Pranab

New Delhi, Jun 23 (PTI) Attributing the latest jump in
food inflation mainly to rising prices of protein-based items,
Indian Finance Minister Pranab Mukherjee Thursday said the
high inflationary regime was not acceptable and efforts would
be made to bring it down.
"... We are in region of high inflationary regime, which
is not acceptable. It will have to be brought down," Mukherjee
told reporters here while commenting on food inflation, which
touched two-and-half-month high of 9.13 per cent for the week
ended June 11.
Food inflation, as measured by the Wholesale Price Index
(WPI), stood at 8.96 per cent during the previous week. It was
almost 23 per cent during the second week of June, 2010.
"Detailed analysis of food items indicate that it is
substantially contributed by the milk products, poultry
products, fish and certain other items," Mukherjee said.
The minister, however, expressed satisfaction that
inflation in overall primary articles came down during the
week.
"On the whole, the figures are not satisfactory... but
not disappointing in the sense that the WPI primary articles
have come down from 12.86 per cent to 12.62 per cent," the
Finance Minister said, adding that cereal prices have also
moderated during the week.
Primary articles have a share of over 20 per cent in the
overall WPI basket.
As per the WPI data, inflation in non-food primary
articles declined from 23.82 per cent for the week ended May 7
to 18.43 per cent during the reporting week.
Fruits and milk became dearer by 28.66 per cent and 15.30
per cent, respectively, during the week ended June 11. The
other items which became more expensive during the week were
onions (11.89 per cent), eggs, meat and fish (10.56 per cent),
cereals (4.32 per cent) and potatoes (0.71 per cent).
However, prices of pulses, wheat and vegetables went down
during the week. While pulses became 10.34 per cent cheaper,
wheat was down 1 per cent and vegetables 9.27 per cent.
Overall, primary articles reported inflation of 12.62 per
cent during the period under review, down from 12.86 per cent
in the previous week.
Meanwhile, inflation of non-food primary articles stood
at 18.43 per cent for the week ended June 11 as against 20.20
per cent during the previous week.
Fibres grew more expensive by 43.77 per cent and minerals
by 25.90 per cent. Fuel and power became dearer by 12.84 per
cent and petrol was up 33.23 per cent year-on-year. PTI BKS
KAP
Referring to the non-food items, Mukherjee said they have
"been steadily declining from 23.82 per cent just a month
back... every subsequent week from May 7 to June 11 it has
steadily declined. That is one important aspect."