Finance Minister Pranab Mukherjee is confident that headline WPI inflation would remain between 6.5% and 7.5% throughout the fiscal year 2012-13.
India's WPI inflation increased to 7.55% in May from 7.23% in April, driven by double-digit jump in food and fuel prices, government data showed on Thursday.
“I am confident that range of inflation would be around 6.5-7.5 per cent throughout the year. I hope if monsoon is quite good, then it would be possible that this type of pressures would be sorted out,” Finance Minister told reporters in New Delhi.
The Government would have to address supply constraints, and issues concerning cold chains and warehousing facilities, Mukherjee said.
Prices of potato, pulses and wheat rose sharply in May, while that of onion and fruits declined. Overall food inflation rose to 10.74% in May, from 10.49% in the previous month, today's government data showed.
“Some of these food items which are seasonal like pulses, vegetables...these are the commodities in which prices have increased,” Mukherjee said.
He further added that core inflation, which moved to 5.74% in May, is continuously coming down from December onwards. It was 8.31% in December.
Manufactured inflation eased to 5.02% in May from 5.12% in April.
The Government today revised upwards the inflation rate for March, to 7.69% from a preliminary estimate of 6.89%. The WPI for March has been revised to 161.0 as compared to a provisional reading of 159.8.