Spike attack on inflation to continue govt cautious on price position: Finance Minister – Times of India

New Delhi: With consumer price inflation remaining high, Finance Minister Nirmala Sitharaman On Tuesday, the government was monitoring the price situation and would continue its direct attack on inflation.
His remarks came hours after official figures showed retail inflation In June it came down to 7.01 percent in June. The print was lower than the 7.04 per cent recorded in May, but still higher than the RBI’s comfort level of 6 per cent.
“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.
India’s fiscal year is from April to March and the second half will be from October.
“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.”

The Finance Minister also said that a favorable monsoon will lead to good production and rural demand.
The government has already taken several steps 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.
Besides this, the government has asked edible oil manufacturers to reduce the maximum retail price (MRP) of edible oils by Rs 15 per liter amid fall in global prices.
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.