New Delhi: The government on Thursday said increase in prices of vegetables, pulses, edible oils, along with demand side imbalances and input cost pressure has kept the inflation at high levels.

"Inflation at its current level is due to high rate of increase in prices of vegetables, pulses and edible oils," Minister of State for Ministry of Finance, Namo Narain Meena said in a written reply to Rajya Sabha.

"Also, inflation in protein-rich items like milk, eggs, fish and meat have continued to be high, reflecting both structural demand-supply imbalances and input cost pressures," he added.

He said supply side measures as well as sector/commodity specific interventions have been initiated by government to address the concerns on food inflation.

In financial year 2010-11, wholesale price (WPI) based inflation was at 9.56 percent and declined to 8.94 percent in 2011-12, Meena said.

The WPI inflation further came down to 7.43 percent in first quarter of 2012-13 and was placed at 7.25 percent in June 2012, the minister added.

All India inflation based on Consumer Price Index (CPI) for new series averaged 10.21 per cent first quarter (April-June) of 2012-13 and was placed at 10.02 percent in June 2012, he added.

"The Reserve Bank, as part of the process of monetary policy formulation, makes projections for inflation. Based on the recent trends in food inflation, trends in global commodity prices and the likely demand scenario, the baseline projection of WPI inflation for March 2013 as set out by RBI in their Quarterly Policy Review of July 31, 2012, is 7 percent," he said.


Latest News from Business News Desk