(a) Whether the Government are aware that inflation rate touched
a new high of the year crossing 3% in the week ended August 10, 2002 due to burgeoning prices of cereals, gram, vegetable oil, fodder, processed tea,
textiles, mineral, metals etc. and petroleum products; and
(b) If so, the steps taken by the Government to contain the inflation rate?
MINISTER OF STATE IN THE MINISTRY OF FINANCE & COMPANY AFFAIRS
(SHRI ANANDRAO V. ADSUL)
(a) The first four months of the current financial year were characterised
by a low inflation rate of less than 3 percent. The annual point to point
inflation rate based on the Wholesale Price Index crossed 3 % (provisional)
for the week ended August 10, 2002 which is still regarded as low inflation
rate. Marginal rise or fall in inflation merely reflects the seasonal price
variations. Only edible oil prices exhibited a sharp rise during the year,
reflecting the impact of the uptrend in imported edible oil prices
compounded further by higher import duties.
(b) Government made concerted efforts to keep inflation under control
through effective supply management as also through close monitoring of
prices and supply of essential commodities. Record public stocks of
foodgrains at around 51 million tonnes ensured comfortable supply
situation of foodgrains and helped stabilise their prices. Government`s
liberal release of surplus foodgrain stocks under various welfare schemes
provided increased support to the vulnerable sections of the society.