India has the highest rate of inflation among major developing economies, Minister of State for Finance Namo Narain Meena informed the Lok Sabha today.
In June, 2010, India's inflation based on the Consumer Price Index for Industrial Workers (CPI-IW) stood at 13.7 per
cent, much higher than that of Indonesia, Brazil, China and Russia.
The corresponding figures for Indonesia, Brazil, China and Russia are 5.1 per cent, 4.8 per cent, 2.9 per cent and
5.8 per cent, respectively, Meena told the Lok Sabha in a written reply.
"In India, inflation based on CPI-IW remains in double digit since July, 2009. The reason behind double-digit
inflation was high food inflation and industrial growth," he said.
Prices in India are rising more steeply than even neighbouring countries like Pakistan (12.7 per cent), Sri
Lanka (4.8 per cent) and Bangladesh (8.5 per cent in April).
The CPI-IW came down to 13.7 per cent this June in the wake of measures taken by the government and a continuous
decline in food inflation since January this year, Meena said.
Inflation of food articles declined to a 13-month low of 9.53 per cent for the week ended July 24 from the peak level
of 21.05 per cent prevailing during the week ended November 28, 2009.
In another reply related to inflation, Meena said, "It is expected that measures initiated by the Reserve Bank of India
will help moderate inflation by reining in demand pressures and inflationary expectations."
Earlier this week, Finance Minister Pranab Mukherjee told Parliament that India's high economic growth is leading to
inflationary pressures in the country.