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Government steps helped ease inflation: Pranab Mukherjee

Replying to the debate on inflationary pressure on the economy in the Rajya Sabha, the finance minister said that in December, the index was 21.6%. Now, it has come down to 9.53%.

DNA Web Team

Updated : Aug 05, 2010, 04:56 PM IST

The government today took credit for food inflation easing to 9.53%, saying it was because of the steps it had taken that the priceline had cooled from a high of 21.6% last December.

Replying to the debate on inflationary pressure on the economy in the Rajya Sabha, finance minister Pranab Mukherjee said, "in December, the index was 21.6%. Now, it has come down to 9.53% (week ended July 24)... it is because of certain steps that were taken (by the government)."

Annual food inflation fell marginally to 9.53% for the week ended July 24 as prices of vegetables, especially potatoes and onions, declined. After holding out above the 16% mark for nearly eight weeks, food inflation eased to near 12% level before falling to single-digit in the week ending July 17.

Overall inflation, which includes changes in the prices of manufactured goods, was 10.55% in June.

Yesterday, Mukherjee had told the Lok Sabha that controlling prices was also the responsibility of the states as they had relevant powers to check hoarding under the Essential Services Maintenance Act.

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