(a) Whether the rate of inflation is declining constantly;
(b) Whether in view of the economic recession inflation rate is likely to decline further; and
(c) If so, the steps taken by the Government to contain the
inflation rate?
(a) Whether the rate of inflation is declining constantly;
(b) Whether in view of the economic recession inflation rate is likely to decline further; and
(c) If so, the steps taken by the Government to contain the
inflation rate?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)
(a) Starting with an over 5% annual point to point inflation rate
(based on Wholesale Price Index) at the beginning of the current
fiscal year, there was a gradual decline in the inflation rate
which reached a low of 2.4% by mid November 2001.
(b) Last year`s rise in inflation was triggered by an increase
in the energy prices (petroleum and electricity) in response to
the rise in international prices of crude oil. If international
crude oil prices continue to remain subdued, there is likely to
be less pressure on domestic inflation rate despite prices of
primary products having registered an inflation rate of 3.8%.
(c) Government has been following an effective supply management
policy to ensure adequate availability of essential
commodities of mass consumption at reasonable prices. It has also
adopted measures on the demand side to control inflationary pressures.
These include bringing about greater fiscal discipline, and regular
monitoring of monetised deficit and broad money (M3) growth.