With inflation reversing the declining trend of the past five months, Finance Minister Pranab Mukherjee today said there is inflationary pressure, but expressed the hope that the rate of price rise will come down to 6.5% by March-end.
He said although inflation in the manufactured goods is above 5%, there has been some easing. Manufactured items have a weight of around 65% in the WPI basket
"I do hope if this trend continues then we will end the year with around 6.5% [inflation]...," Mukherjee told reporters here.
Driven by a sharp increase in food prices, especially vegetables and protein-based items, overall inflation rose to 6.95% in February.
Inflation, as measured by the Wholesale Price Index (WPI), was 6.55% in January.
"Food inflation particularly has gone from negative to 6% plus... Primary food articles there has been sharp increase," Mukherjee said.