Center cautious on price situation: Finance Minister Sitharaman on inflation data

“As the RBI has projected, by the beginning of the second half of the (financial) year, both the RBI and the government will have to be careful,” he told reporters here.

“We have to be careful and cautious about how the price movement is,” he said. “I will continue to monitor (prices) item by item for anything. This attack on inflation will need to continue.”

Steps taken to reduce prices

However, it is expected that a favorable monsoon will lead to good production and rural demand. Several steps have already been taken to bring down the prices. These include reducing the excise duty on petrol and diesel, banning the export of wheat, allowing duty-free imports of certain crude edible oils and revising the duty structure on steel and steel products.

In addition, the government has asked edible oil manufacturers to reduce the maximum retail price (MRP) of edible oils 15 per liter amid fall in global prices.

Prices will improve gradually: RBI Governor

Last week, RBI Governor Shaktikanta Das said that the price situation will gradually improve in the second half of the current fiscal and the central bank will continue to take monetary measures to control inflation to achieve strong and sustainable growth.

India’s fiscal year is from April to March and the second half will be from October.

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