Food prices to moderate after festive season, says Pranab

New Delhi, Sept 8 (PTI) With food inflation falling to a
single-digit for the week ended August 27, Finance Minister
Pranab Mukherjee expressed hope on Thursday that it would
moderate further after the end of the festive season, though
high prices of non-food items continue to be an area of
concern.
"During the festive season, there will be some
fluctuation (in food prices). But after that, moderating
influence will continue," Mukherjee told reporters here.
His comments came after food inflation slipped to 9.55
per cent for the week ended August 27 from 10.05 per cent in
the previous week, data released by the government said.
"In agricultural prices, commodity prices and food items,
there could be fluctuations and up and down during the festive
season. Tomorrow is Onam. Therafter is Dusshera and Diwali,"
Mukherjee said.
He said, however, the price situation in the non-food and
fuel segments is still not encouraging.
"Though food inflation has come down... (inflation of)
other items has increased substantially, particularly the
non-food primary articles, which is not at all encouraging,"
the Finance Minister said.
Inflation in non-food articles, which include fibres,
oilseeds and minerals, stood at 19.88 per cent during the week
ended August 27, up from 17.19 per cent in the previous week.
Meanwhile, fuel and power inflation stood at 12.55 per
cent for the week under review, the same as in the previous
week.
"Fuel prices are still a cause of concern, hovering
around USD 115 per barrel. I do hope it will be possible for
us to have some moderation with the international economy's
trend. But it is difficult to predict that right at this
juncture," Mukherjee said.
Overall, inflation in primary articles was recorded at
13.34 per cent for the week ended August 27, up from 12.93 per
cent in the previous week.
Mukherjee also said the government expects headline
inflation to moderate by March, 2012.
"I hope before the end of the fiscal year, it would be
possible to have a moderate rate of inflation," Mukherjee
said, without giving any numbers.
Headline inflation, which factors in manufactured items,
fuels and non-food primary items, besides food articles, stood
at 9.22 per cent in June. It has been above the 9 per
cent-mark since December last year.
The government had earlier said headline inflation is
likely to remain high till the third quarter and then moderate
to around 6.5 per cent by March, 2012. The RBI has projected
fiscal-end inflation at 7 per cent.