New Delhi: The Finance Ministry on Monday said that the rise in retail inflation in August was due to an adverse base effect and an increase in food and fuel prices – the transient components of the CPI (Consumer Price Index). Today, the Ministry of Statistics released the inflation data for August which came out at 7 percent – higher than what was recorded in July (6.71 percent).
The finance ministry said that the core inflation calculated by excluding food and fuel was recorded at 5.9 percent in August 2022, remaining below the tolerance limit of 6 percent for the fourth consecutive month. It further said that prices of major inputs like iron ore and steel have sobered in the global markets.
The headline inflation based on retail CPI recorded a moderate increase from 6.71 % in July 22 to 7.0 % in August 22. This increase is attributable both to an adverse base effect and an increase in food & fuel prices – the transient components of CPI inflation. (1/7)
— Ministry of Finance (@FinMinIndia) September 12, 2022
“This coupled with the measures taken by the government to rationalize tariff structures of inputs to augment domestic supply has helped to keep cost-push inflation in consumer items under control,” it added.
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The ministry added that despite erratic monsoons and negative seasonality in vegetable prices, food inflation in July was still lower than the April peak of the current year. With global inflation pressures, it said, inflationary expectations remain anchored in India with stable core inflation.
The ministry also highlighted the steps to tame inflation, which is the single biggest concern for not only India but also for many other European countries.
The ministry said that to soften the prices of edible oils and pulses, tariffs on imported items have been rationalized periodically and stock limits on edible oils have been kept to avoid hoarding. Inflation in ‘oils and fats’ and ‘pulses and products’ have moderated to 5.62 percent and 2.52 percent respectively, it said.
“The government has prohibited exports of food products like wheat flour/atta, rice, maida, etc to keep domestic supplies steady and curb the rise in prices. The impact of these measures is expected to be felt more significantly in the coming weeks and months,” it said.
Source by www.businesstoday.in