November inflation at 4.78% not a surprise: Fin Secy

Last Updated: Monday, December 14, 2009 - 17:22

New Delhi: The government on Monday said the
spike in inflation to 4.78 percent in November was on
expected lines and does not call for any immediate action.

"It is not as if we are taken by surprise or that there
is any cause for any special emergency measure at this stage,"
Finance Secretary Ashok Chawla told reporters here.

Rising prices of commodities has always been a matter
of concern for the government, he said, adding the government
has been taking administrative steps to contain inflation.

Led by rising food prices, the Wholesale Price-based
index for November shot up to 4.78 percent from 1.34 percent
in the previous month.

Food infation, as per the weekly data released earlier
today, showed an increase of 19.04 percent.

"The fact that food inflation was high and that could
reflect in the WPI was also known," Chawla said, adding the
government would see whether the rise in inflation was on
account of the base effect or is it a trend that is likely to
continue.

"In any case, the expectations which the Reserve Bank of
India (RBI) had put out and which the government has also
indicated was that the WPI would be in the region of 6 percent by March 2010," he added.

PTI



First Published: Monday, December 14, 2009 - 17:22

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