New Delhi, June 14 (ANI): Finance Minister Pranab Mukherjee on Thursday expressed confidence that headline inflation would remain between 6.5-7.5 percent throughout the current fiscal.
India's Wholesale Price Index (WPI) rose to 7.55 percent in May, keeping price pressures elevated and making it harder for the Reserve Bank of India (RBI) to revive economic growth with a widely expected interest rate cut next week.
The rise in the WPI from 7.23 percent in April is due to increase in food and fuel prices.
"I am confident that the range of inflation would be around 6.5 to 7.5 percent throughout the year and if the monsoon is good, this type of problem will be sorted out. Of course we shall have to address the supply constraints, warehouse inflationary etcetera, that is a different story," Mukherjee said.
The increase keeps inflation near its highest level this year.
Growth slumped to a nine-year low of 5.3 percent in the first quarter of calendar 2012, and data this week showed a dip in the industrial output for April, triggering fresh calls for the government to restart an economic liberalisation programme stalled since 2004.
Mukherjee highlighted the consistent fall in coal inflation from December onwards.
"Coal inflation is continuously coming down from December onwards. In December, it was 8.31 percent, it came down to 5.31 percent in April, now it has increased marginally i.e. 5.74 percent. But from 8.31 it is continuously coming down," Mukherjee added.
tandard and Poor's this week threatened to downgrade the country's investment grade sovereign rating to junk, citing weakening economic fundamentals and policy inaction. It cut the outlook on its long-term rating on India to negative from stable in April. (ANI)