Average inflation during 2010-11 to jump up to 9 pc: FinMin

Posted By: Pti
Subscribe to Oneindia News

New Delhi, Jan 24 (PTI) The finance ministry today saidthe average annual infation during the current fiscal willjump to 9 per cent, which is more than double the figure of3.8 per cent recorded a year ago.

"...the economic advisors tell that we are likely to endthe year with 9 per cent (average) inflation for the year2010-11," Revenue Secretary Sunil Mitra told reporters here.

The inflation has been a major concern throughout theyear, mainly driven by rising prices of essential food itemsincluding onion, other vegetables, fruit and milk.

Last fiscal, wholesale price inflation stood at 3.8 percent, Minister of State for Finance Namo Narain Meena hadsaid.

The year 2010-11 started with inflation of 9.59 per centin April, which went into double digit for the month of Mayand June at 10.16 per cent and 10.55 per cent, respectively.

Adding to the woes of the government, the overallinflation in December stood at 8.43 per cent, mainly due torising food prices.

The contribution of food inflation to overall inflationcould be gauged from the fact that ''manufactured'' inflation,in fact, came down to 4.46 per cent in December from 4.56 percent in the previous month.

Vegetable prices rose by 22.90 per cent in Decemberversus the previous month. Within vegetables, onions turnedexpensive by 34.86 per cent and potato by 16.29 per cent.

Finance Minister Pranab Mukherjee had said the currentrate of inflation is "unacceptably high". He also discussedthe issue with state finance ministers on January 19 thisyear.

Both Finance Ministry and Prime Minister''s EconomicAdvisory Council expect wholesale price inflation to be around7 per cent by March-end.

Please Wait while comments are loading...