Finance Minister Pranab Mukherjee said on Saturday that the government is trying to improve supply of some critical farm products which will help moderate the double-digit food inflation in coming weeks. Mr. Mukherjee told reporters in Kolkata that food inflation has reached double digit which is a matter of concern.
He said, there is definitely a seasonal factor, but apart from that, there are supply constraints in some critical agricultural products which the government will be trying to remove. He hoped that it would have some moderating influence in the coming weeks.
After a gap of over five months, food inflation entered the double-digit zone at 10.05 per cent for the week ended
August 20th, which raised speculation of another hike in policy rates by RBI in mid-quarter monetary policy review scheduled on September 16th.