Patna, June 14: As inflation climbed to 10.16 per cent in May showing no signs of cooling, Finance Minister Pranab Mukherjee today said prices would begin to ease once it’s clear monsoons are normal.
“After July, the trend of monsoon (will become)… known.
Inflationary pressure would start coming down,” he told reporters here.
Wholesale Prices-based inflation provisionally touched a 19-month high of 10.16 per cent in May, while final figures released for the month of March put inflation at a much higher 11.04 per cent.
The India Meteorological Department expects monsoon, which accounts for 80 per cent of rains the country receives, to be near normal this year. Poor monsoon last year hit crop production, fueling rise in prices of food items.
“It (inflation) is a surely a matter of concern because food inflation is rising. Wholesale Price Index (WPI) has also crossed double digits.
–Agencies