Mumbai: A surge in the wholesale and food price inflations, which is largely on account of the zooming food prices, is sector-specific and will not last long, a top government official today said.
The WPI-inflation, which more than trebled to 4.78 per cent during November on account of rising prices of food items like potato, sugar and pulses, is largely sector-specific and warrants sectoral intervention, Chief Economic Advisor to the Finance Ministry, Kaushik Basu today said.
"This (inflation) is very very sector specific. This is confined in food prices and a couple of other items. This is something which needs sectoral intervention," Basu said.
Rising prices of potatoes, onions and pulses pushed food inflation to a high of 19.05 per cent in the fourth week of November, as against 17.47 per cent for the week ended November 21.
Basu, who was talking to reporters here after attending the HLCC meeting on financial markets, said said the current high inflation is unlikely to last long.
"My own expectation is that this inflation is not going to last long. It is going to die out very soon," Basu said.
The Government's various efforts to eradicate poverty form the country, like the Natioanl Rural employment Guarantee programme, is showing results and will help to prevent poverty levels from rising further, Basu said.
The HLCC meeting comprised Reserve Bank Governor, D Subbarao, Securities and Exchange Board of India, Chairman, C B Bhave, Chief Economic Advisor to the Finance Ministry, Kaushik Basu,IRDA Chairman J Hari Narayan amongst others.
PTI
First Published: Monday, December 21, 2009, 20:19