Finance Minister Pranab Mukherjee on Tuesday expressed concern over inflationary pressure on food prices, but said the Reserve Bank of India (RBI) and his ministry will take appropriate actions as and when needed.
"Inflationary pressure is still there because the food prices have gone up on the back of an erratic monsoon," Mukherjee told reporters here.
According to the new series with 2004-05 as the base year, the wholesale price index for the month of August stood at 8.51 per cent. The government released the data on Tuesday.
"The RBI is constantly watching the situation. We are in touch with them. The RBI and the Ministry of Finance will take appropriate measure at the appropriate time," Mukherjee said.
"I do hope that annual inflation would be much lower. It will be much below in the new series," he added.
According to the old index, which considered 1993-94 as the base year, inflation remained in double digits for five straight months till June. It fell to 9.97 per cent in July.
According to the old index inflation remained in double digits for five straight months till June 
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