Encouraged by the marginal decline in rate of price rise to 9.22 per cent in July, the Finance Minister, Mr Pranab Mukherjee, today said inflationary pressure would ease further on the back of good monsoon.

“I am quite confident that good monsoon will ensure moderation of inflationary pressure,” he told reporters here pointing out that the Government and the Reserve Bank are working in tandem to contain prices.

“Inflationary pressure is in the system and we shall have to make efforts to have the inflationary pressure at an acceptable moderate level for which we are working in tandem with the Reserve Bank,” Mr Pranab Mukherjee said.

His comments came after the release of data which reported headline inflation for July at 9.22 per cent, down from 9.44 per cent in June.

“The measures taken to remove supply constraints in some of the agricultural products and the monetary policy adopted by the RBI will help bring about moderation of inflationary pressure and at the same time, it will ensure the average ratio of liquidity of the legitimate credit requirement of the industry and other sectors...,” he said.

The Finance Minister pointed to the decline in inflation of both food and non-food primary articles in July and termed it as “good news’’.

Commenting on the July numbers, the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, said inflation still continues to remain high.

“There is slight decline in inflation. It is still on high side. We have to be vigilant. Its good that it is gradually declining,” he said.

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