‘Consumer inflation pressure is for real’

Inflation is not what you think it is. While wholesale price-based indices show that inflation has come down – indeed turned negative – a lot of that is based on statistical base-year effect. On the ground, inflation pressures are real, Finance Minister Pranab Mukherjee said, reports HT Correspondent.

Inflation is not what you think it is. While wholesale price-based indices show that inflation has come down – indeed turned negative – a lot of that is based on statistical base-year effect. On the ground, inflation pressures are real, Finance Minister Pranab Mukherjee said.

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“The real market prices are reflected in consumer prices which is very high and the wholesale price inflation is also expected to be around 6-6.5 per cent,” told the HT Leadership Summit.

The minister added that in an inter-linked global economy, inflation cannot be managed by domestic policies alone, as commodity prices were beyond the control of a nation.

“Last year’s high inflation was a result of the high commodity prices and high food prices,” he said.