Finance Minister Pranab Mukherjee has informed that there could be a double-digit inflation this March.
Mukherjee said this while taking part in the discussion on the General Budget for the Financial Year 2010-11 at the Rajya Sabha.
However, he believes that the current rise in food prices will go down very soon. The government is taking all the necessary steps to tackle the food inflation, said the minister.
But at the same time, he has also expressed his concerns over the possible double digit rate of inflation in the current month. Hence, it is going to be a hectic and troublesome financial year end for the Indian consumers.
In the month of February, the country’s annual rate of inflation had risen to 9.89 per cent. This figure was the highest in the last 16 months. In January, this was reported to be 8.56 per cent.
Rise in food price is undoubtedly pushing the rate up. On the contrary, the annual food inflation has also ended with as high as 17.81 per cent for the last week of February.
While India shows good growth rate figures, this inflation could be a major roadblock.