In the backdrop of sky-rocketing food prices, prime minister Manmohan Singh said on Saturday that the wholesale price index-based inflation rate was expected to fall to around 6 percent by December, from a double digit figure now. The PM’s sunny outlook hinges on a normal monsoon.
“With a normal monsoon, which is the expectation at present, the rate of inflation in food prices will abate in the second half of the year,” he said at a meeting of the National Development Council attended by several chief ministers, cabinet ministers and top bureaucrats in the capital on Saturday.
Food inflation for the week ended July 10 was reported at 12.47%, while the wholesale price inflation was reported at 10.55% for June.
Monsoon rains have been 12% below the long-term average so far this year, but fairly widespread rainfall is expected in the next few days.
Talking about the rising threat of left wing extremism in the country, the prime minister acknowledged that the 11th plan (2007-2012) had not benefited the tribal people in the country, resulting in extremism gaining ground among the marginalised people.
Singh also expressed concern over lack of attention being given by state governments to the agriculture sector. “Agriculture is not receiving the priority it deserves. This must be corrected if we want to achieve a broad-based improvementin living standards in rural areas.”
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