Dip in food inflation not much consolation: Pranab

Written by: Pti
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New Delhi, Jan 20 (PTI) Finance Minister Pranab Mukherjeetoday said dip in food inflation for the week ended January 8,was not "much consolation" and the government would continueto take steps to tame rising prices.

"Some of the vegetable prices are still high... I do notknow what would be the impact of the recent increase (inpetrol price) because these figures are two weeks old", hetold reporters here.

Although food inflation during the period declined by1.38 percentage points to 15.52 per cent, the vegetable andonion prices continue to remain high.

Moreover, the inflation figures do not capture the impactof the recent increase in petrol prices by Rs 2.50 per litre.

"But the fact of the matter is (that) from 16.91 per centit (food inflation) has come down to 15.52 per cent...it isnot much consolation but declining trend is there," theMinister said.

"We shall have to watch the situation. All necessary,effective steps are being taken including improving of supplymanagement," he added.

On an annual basis, prices of pulses for the week endedJanuary 8, have declined by 14.92 per cent, followed by wheat(6.11 per cent) and potato (2.91 per cent).

Vegetable prices, however, are still up; they are 65.39per cent more expensive in comparison to the year-ago period.

Onion prices nearly doubled during the year.

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