Govt working to rein in inflation, says FM

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Key Points

Wholesale price inflation fell to a 29-month low of 1.34% in March, aided by a sustained decline in commodity prices and a favourable base effect.. Inflation in India is slightly above the tolerance limit and the government is taking steps to control it, finance minister Nirmala Sitharaman said on Saturday..

The ministers comments come at a time when, despite a moderation in inflation in recent months, the recent OPEC-plus decision to cut production and prediction of a subdued monsoon have raised fresh concerns over prices, besides the sticky milk inflation..

Retail inflation, measured by the Consumer Price Index (CPI), fell to a 15-month low in March and below the 6% upper tolerance limit of the RBI after remaining above it for two months, as prices of most items, particularly in the food basket, moderated and a base effect came into play..

The central bank has said that it will observe the impact of existing rate hikes and then take a call on future rate decisions.. Recently, the minister said at an event in Mumbai that she would give the RBI its terrain as far the monetary policy is concerned..

Addressing another event in Karnataka, Sitharaman said India is facing multiple prominent external challenges due to fluctuations in global commodity prices and a recession in developed economies...

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