Inflation in manufactured goods remains a matter of concern despite a marginal decline in December, Finance Minister Pranab Mukherjee today said, expressing hope that the overall rate of price rise would come down to 6-7 per cent by March-end.
"The manufactured inflation and inflation in the power group of items have also declined, though only marginally, (and) therefore, continued to be a cause of concern," he said.
Prices of manufactured products, which account for 65 per cent of the overall weight of the Wholesale Price Index (WPI) basket, went up by 7.41 per cent year-on-year in December, as against 7.70 per cent in the previous month.
"Headline inflation should be between 6 and 7 per cent in March-end, 2012," Mukherjee said, adding he was confident the moderation in inflation would continue in the coming months.
Inflation, as measured by the WPI, fell to a two-year low of 7.47 per cent in December, 2011, from 9.11 per cent in the previous month.
As per official data, prices of food items rose at a lower rate of 0.74 per cent in December, compared to 8.54 per cent expansion in the previous month.
The decline in December inflation, Mukherjee said, is "mainly due to a significant decline in inflation for primary articles, including food inflation."
He said good industrial production numbers for November, at 5.9 per cent, and a sharp decline in inflation indicates some improvement in overall macro-economic parameters in the second half of 2011-12.
"This trend is likely to consolidate in the coming months with some policy correctives," the Finance Minister added.
He also said that softening of prices of manufactured goods would be gradual, even as non-food primary inflation witnesses a rapid decline.
'Inflation in Manufactured Items Remains a Concern'
THE LATEST ISSUE
- Coronavirus: G20 Countries Pledge $5 Trillion To Revive Global Economy
- 'No One Will Go Hungry': Govt Grants Rs 1.70 Lakh Cr Package To Poor Amid Coronavirus Lockdown
- Coronavirus: With 88 New Infections, Cases In India Rise To 694; Death Toll Reaches 16
- Kabul Gurdwara Attack: A Pakistani Attempt To Rupture Strong Indo-Afghan Ties
- Coronavirus Pandemic Raises Serious Questions About China's Conduct
- Dipak Misra Was Reviled As CJI But Ranjan Gogoi Beguiled His Way To Power
- Taking Up Hijab Against Coronavirus
- Seemingly Happiest People Often Suffer From Depression
- Blog | Not Music Or Art, But It's 'Fear' That Binds Us Together
- Restructuring Indian Railways’ Cadres: Is The Proposal Good For The Nation?
- In Chasing Away Maoists, Odisha's Malkangiri Village Delivers Telling Message This R-Day
- Coronavirus: India Extends Ban On International Flights Till April 14
- 'First Step In Right Direction': Rahul On Centre's 1.70 Lakh Cr Package
- Harassment Of Workers Threatens Production Of COVID-19 Test Kits
- Panic-Buying Can Lead To Lack Of Essential Items During Lockdown
- Coronavirus: A James Bond-Inspired Mobile App Helping TN Authorities
- Rs 50 Lakh Insurance Cover For Doctors, Healthcare Workers Fighting COVID-19
- Shikhar Dhawan Urges Indians To Donate
- How Coronavirus Has Wrecked Sports