FM sees inflation touching double digits in March

FM sees inflation touching double digits in March
Finance Minister Pranab Mukherjee today cautioned that inflation could be in double digits in

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March though the government is taking all steps to protect the vulnerable sections from price rise.

"I will not be surprised if it (inflation) reaches double digit in March," he said while replying to a debate on the General Budget 2010-11 in Rajya Sabha.

The general inflation has already touched 9.89 per cent in February.

He, however, said that high inflation was partly due to low base last year. Last year, during this time inflation in case of many commodities was in the negative range and, therefore, this impact may continue till May/June this year.

Replying to charges that the government was not releasing surplus foodgrains from buffer stocks, he said, "The Centre has offered the states to lift three million tonnes of wheat and one million tonnes of rice for open market sale."

If states ask for more, the Centre will provide that. "But we cannot throw it in the streets," he said.

Prime Minister Manmohan Singh had recently convened a meeting of states to identify areas of food inflation so that vulnerable section of the society could be protected from the impact of price rise.

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