Inflation slips to 6.89 percent in March

New Delhi, Apr 16 (ANI): Finance Minister Pranab Mukherjee on Monday said the annual rate of inflation for the month of March has moderated to 6.89 percent as against 6.95 percent in February.

"The annual rate of inflation raised from monthly WPI (wholesale price index) for March 2012 has moderated to 6.89 percent as against 6.95 percent in February 2012. We were expecting that it would be anywhere between 6.5 to 7 percent, that is the projection which we were making and it has come around that," he said.

Mukherjee, however, expressed discontent over the increase in food inflation.

"Food inflation in the month of March has increased, which is a disturbing factor. I do hope in course of time, it will be moderate. Though it is the headline inflation would be 6.89 percent but it would have been more comfortable, had been nearer to 6.5-6.6 percent," said Mukherjee.

"But we shall have to be alert on it and of course the supply side constraints, which substantially affect the food inflation, we will be addressing that," he added.

The overall inflation in March eased to 6.89 percent on account of sharp decline in prices of onions, fruits and protein-based items, even as vegetables and pulses turned costlier.

The inflation number for March remained marginally above the projections made by Finance Ministry, which had expected it to be around 6.5 percent. (ANI)