Click to play videoNew Delhi: Inflation is now at a seven-year high, at 8.75 per cent.
While the figures are a cause of worry, Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia, believes that the Indian economy is on the right track.
He said people needed to be patient with the inflationary trend in the Indian economy.
“You always have to ask for patience when you are dealing with big problems, because big problem aren’t solved instantaneously. I am not talking about waiting for years. I am saying that in a few months, certainly by September-October we would be in a much better position on the inflation front,” he said.
The figures for the week ending May 31 put inflation at 8.75 per cent, the rise being mainly attributed to rising prices of food articles and vegetables with analysts saying that the recent fuel price hike will push it past the nine-per cent mark.
Analysts were expecting a figure of around 8.32 per cent up from up from 8.24 per cent in the week ending May 24.
Prices of manufactured products were up 0.7 per cent while prices of primary articles rose by 0.9 per cent.
The rising prices of milk, pulses, spices, fruit and vegetables continued to pose a major challenge before the Manmohan Singh government in an election year even as Finance Ministry in tandem with the Reserve Bank of India pursued tough policy and monetary measures to tame inflation.
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