Govt taking steps to curb inflation: Sitharaman

Price stability remains high on the government's agenda

The government has taken several steps to contain inflation in the recent past and is regularly monitoring the situation as price stability remains high on its agenda, Parliament was informed today.

"Government monitors the price situation regularly and price stability remains high on its agenda. Government has taken several measures to contain inflation in recent past," Minister of State for Finance Nirmala Sitharaman said in a written reply in the Rajya Sabha.

She said government has taken measures such as bringing onion and potato under the Essential Commodities Act, de-listing of fruits and vegetables from Agricultural Produce Marketing Committee Act, fixing minimum export price of $500 per tonne and $450 per tonne on export of onion and potato respectively.

Also, an additional 50 lakh tonne of rice has been allocation for distribution towards Below Poverty Line (BPL).

Sitharaman said these steps are likely to have a salutary impact on the availability of these items.

On the role of the Reserve Bank in keeping prices in check, she said the RBI hiked the repo rate thrice during 2013-14 by 0.25% each from 7.25% to 8% as on January 2014.

"The policy rates have been kept unchanged since then. The current policy stance of the RBI is firmly committed to keeping the economy on a disinflationary course, taking Consumer Price Index inflation to 8% by January 2015 and 6% by January 2016," she said.

In a separate reply, Finance Minister Arun Jaitley said higher inflation in some food articles, manufactured products such as chemicals, textiles, rubber, revision in electricity prices and higher inflation in non-administered mineral oils due to increase in global crude oil prices has led to the rise in inflation in May 2014.

Food inflation based on Wholesale Price Index was 6.98% in May 2014, up from 6.34% a month ago.