Expressing concern over rising inflation which surged past 9 per cent in May, the Finance Minister, Mr Pranab Mukherjee, today said the Government would take appropriate action to contain prices.
“We would keep a close watch on developments, both domestic as well as international, in the coming months and make appropriate adjustments as we go along”, he said in a statement.
The inflation, as per the Wholesale Price Index (WPI) data, went up to 9.06 per cent in May from 8.66 per cent in April following an increase in the prices of essential items like fruits, milk, petrol and manufactured goods.
Pointing out that the inflation for May at 9.06 per cent was lower than 10.48 per cent recorded a year ago, Mr Pranab Mukherjee said: “the picture for the latest month is however mixed.”
While food and primary inflation has declined, “core inflation (that is other than food, fuel and power inflation) continues to harden...this poses some concerns which will have to be addressed”, he said.
Referring to the rising prices of essential kitchen items, he said: “other than fruits, inflation is moderating in all food items’’.
The rate of price rise in non-food primary articles, he said, is still high at 22.35 per cent, though it has moderated from 27.33 per cent in April.
The decline in inflation of non-food articles, Mr Pranab Mukherjee hoped, would help in moderating the inflationary tendency in the economy in the coming months.