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This article was first published 10 years ago

Food inflation still remains a worry: Chidambaram

February 17, 2014 12:11 IST

Image: A vendor sells vegetables at a market in Mumbai.
Photographs: Rupak De Chowdhuri/Reuters

Finance Minister P Chidambaram on Monday said both the government and the Reserve Bank of India have acted in tandem to bring down price rise, even as food inflation at 8.8 per cent still remains a worry.

"Both the government and RBI have acted in tandem (to bring down inflation).

“While our efforts have not been in vain, there is still some distance to go," he said in the Interim Budget for 2014-15.

Interim Budget 2014-15: Complete Coverage

Food inflation still remains a worry: Chidambaram


Photographs: Reuters

Chidambaram, however, said: "Food inflation still remains a worry although it has declined sharply. . . "

The wholesale price-based inflation has fallen to a 8 month low of 5.05 per cent in January, while the retail inflation was at a two-year low of 8.79 per cent.

Inflation in food articles category in January stood at 8.8 per cent.

Interim Budget 2014-15: Complete Coverage

Food inflation still remains a worry: Chidambaram


Photographs: Reuters

It was 13.68 per cent in the preceding month.          

The central bank factors both retail and wholesale price-based inflation data in its monetary policy.

The Reserve Bank had increased a key interest rate by 0.25 per cent to 8 per cent in its Third Quarter Review of Monetary Policy on January 28.

Interim Budget 2014-15: Complete Coverage

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