Govt steps helped ease inflation: FM | business | Hindustan Times
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Govt steps helped ease inflation: FM

business Updated: Aug 05, 2010 17:47 IST

The government today took credit for food inflation easing to 9.53 per cent, saying it was because of the steps it had taken that the priceline had cooled from a high of 21.6 per cent 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 per cent. Now, it has come down to 9.53 per cent (week ended July 24)... it is because of certain steps that were taken (by the government)."

Annual food inflation fell marginally to 9.53 per cent for the week ended July 24 as prices of vegetables, especially potatoes and onions, declined. After holding out above the 16 per cent mark for nearly eight weeks, food inflation eased to near 12 per cent 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 per cent in June.

On Wednesday, 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.