New Delhi: Encouraged by the marginal decline in rate of price rise to 9.22 per cent in July, Finance Minister Pranab Mukherjee on Tuesday said inflation pressure would ease further on back of good monsoon. Read more: Headline inflation falls to 9.22 percent in July (Agencies)
"I am quite confident that good monsoon will ensure moderation of inflationary pressure," he told reporters pointing out that the government and the Reserve Bank are working in tandem to contain prices.
"Inflationary pressure is in the system and we shall have to make effort to have the inflationary pressure at an acceptable moderate level for which we are working in tandem with the Reserve Bank," Mukherjee told reporters here.
His comments came after release of data which reported headline inflation for July at 9.22 per cent, down from 9.44 per cent in June.
"The measures taken to remove supply constraints in some of the agricultural products and the monetary policy adopted by the RBI will help bring about moderation of inflationary pressure and at the same time it will ensure the average ratio of liquidity of the legitimate credit requirement of the industry and other sectors...," Mukherjee said.
He pointed to the decline in inflation of both food and non-food primary articles in July and termed it as "good news".
Commenting on the July numbers, Planning Commission Deputy Chairman Montek Singh Ahluwalia said inflation still continues to remain high.
"There is slight decline in inflation. It is still on high side. We have to be vigilant. Its good that it is gradually declining," Ahluwalia said.
As per data released by government today, prices of food articles went up by 8.19 per cent in July year-on-year, which is lower than the 8.38 per cent inflation recorded in June.
Inflation in overall primary articles, which have a share of over 20 per cent in the WPI basket, stood at 11.30 per cent in July, down from 12.22 per cent in June.
However, prices of manufactured products, which have a weight of around 65 per cent in the WPI basket, went up by 7.49 per cent year-on-year in July.
Inflation in manufactured products has been steadily rising since February this year, when it crossed the 6 percent mark. It was 7.43 per cent in June.
The index for the fuel and power segment stood at 12.04 per cent year-on-year in July, down from 12.85 per cent in the previous month. The index has a weight of almost 15 per cent in the WPI basket.
In addition, inflation in non-food primary articles moderated to 15.51 per cent in July from 18.57 per cent in June.
New Delhi: Encouraged by the marginal decline in rate of price rise to 9.22 per cent in July, Finance Minister Pranab Mukherjee on Tuesday said inflation pressure would ease further on back of good monsoon.
Read more: Headline inflation falls to 9.22 percent in July