Govt monitoring inflation situation: FinMin

Tags: News
With the WPI-based inflation at a 5-month high of 6.12 per cent in May, the government today said it is closely monitoring the situation and is taking steps to check price rise.

"Government is closely monitoring the situation and taking measures on an ongoing basis to bring down inflation," Minister of State for Finance Nirmala Sitharaman said in a written reply to the Lok Sabha.

She said some measures have been taken to contain food inflation, which include recommending delisting of fruits and vegetables from the purview of Agriculture Produce Marketing Committee Acts (APMC) of states and revising the minimum export price to $ 500 MT and $ 450 MT for onion and potatoes respectively.

Further, the government has also approved inclusion of onion and potato under the purview of stock holding limits under the Essential Commodities Act, which would help the state government de-hoard the stock and control the prices.

"This decision is expected to help in the efforts being taken to tackle the problem of rising prices and also improve the availability of these commodities to the general public, especially vulnerable sections," Sitharaman added.

The rise in May Wholesale Price Index based inflation has been mainly on account of 31.44 per cent increase in prices of potato, 19.40 per cent in fruits and 12.75 per cent in rice. The overall food inflation stood at 9.50 per cent.

In a separate reply to another question, Sitharaman said the rise in May inflation was on account of seasonal spike in some vegetables and increase in input cost.

"As the rise in the prices of essential commodities impacts the poor and vulnerable sections the most, government attaches high priority to containing inflation, particularly for essential commodities," she added.

The WPI inflation had touched a peak of 10.23 per cent in October 2013. The retail inflation, based on Consumer Price Index, stood at 8.28 per cent in May.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • E-auction and eventual privatisation of coal industry are welcome steps

    The government’s decision to privatise the scam-ridden coal industry through a presidential ordinance will eventually end the monopoly of public sec

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Rajgopal Nidamboor

Synchronous balance is vital for one and all

Imagine that you are playing an electronic game, or actually ...

Shona Adhikari

When women to birds become a painter’s muses

This week the focus is on renowned artist Amitabha Banerjee, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture