New Delhi, 11 December (Hindustan Reporter). Union Finance Minister Nirmala Sitharaman said that retail inflation is now 'stable'. He said that on some occasions, temporary increases in inflation are caused by demand-supply mismatches arising from global shocks and adverse weather conditions.
Finance Minister Nirmala Sitharaman said in a written reply to a question in the Lok Sabha on Monday that India's retail inflation is now stable. This is within the notified tolerance band of two per cent to 6 per cent. Sitharaman said inflation has declined from an average of 7.1 per cent in April-October 2022 to 5.4 per cent in the same period in 2023.
Sitharaman attributed the sustained decline in headline inflation largely to weak price growth pressures. He said the sustained decline in core inflation estimates after removing volatile food and fuel items from retail inflation has been important in weakening inflationary pressures in the Indian economy.
The Finance Minister said that the core inflation rate has come down from 4.3 percent in April 2023 to 4.3 percent in October 2023. The minister said retail inflation in India has mostly been within acceptable limits after the notification of inflation tolerance bands in 2016. He said that active supply-side initiatives by the government and effective demand stabilization measures by the Reserve Bank of India (RBI) have helped in bridging the demand-supply gap and curbing inflation.
Hindustan News/Prajesh Shankar/Dadhibal
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