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With inflation reversing the declining trend of the past five months, the Finance Minister, Mr Pranab Mukherjee, has said that there is inflationary pressure, but expressed the hope that the rate of price rise will come down to 6.5 per cent by March-end.
He said although inflation in the manufactured goods is above 5 per cent, there has been some easing. Manufactured items have a weight of around 65 per cent in the WPI basket.
“I do hope if this trend continues then we will end the year with around 6.5 per cent (inflation)...,” Mr Mukherjee told reporters here today.
Driven by a sharp increase in food prices, especially vegetables and protein-based items, overall inflation rose to 6.95 per cent in February. Inflation, as measured by the Wholesale Price Index (WPI), was 6.55 per cent in January.
“Food inflation particularly has gone from negative to 6 per cent plus... primary food articles there has been a sharp increase,” he said.
As per the official data released today, food inflation was 6.07 per cent in February against -0.52 per cent in January.
Pulses turned expensive by 7.91 per cent and vegetables by 1.52 per cent during February. Prices of vegetables had declined by 43.13 per cent in January.
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