Proactive measures by the government brings inflation within RBI’s tolerance limit
Consumer price inflation and wholesale price inflation declines to 5.7% and 5.0% in December 2022 respectively. Inflation risks from global commodity prices likely to be lower in fiscal year 2024.
Prompt and adequate measures by the Government of India and the Reserve Bank of India (RBI) have reined in the rise in inflation and brought it within the Central Bank’s tolerance limit, says the Economic Survey 2022-23 tabled by the Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman in Parliament today.
Consumer Price Inflation: (CPI)
The Survey states that the Consumer price inflation in India went through three phases in 2022. A rising phase up to April 2022 when it crested at 7.8 per cent, then a holding pattern at around 7.0 per cent up to August 2022 and then a decline to around 5.7 per cent by December 2022. The rising phase was largely due to the fallout of the Russia-Ukraine war and a shortfall in crop harvests due to excessive heat in some parts of the country. Excessive heat in summer and uneven rainfall thereafter in some parts of the country affected the farm sector, reducing supply and causing prices of some major products to rise.
Prompt and adequate measures by the Government of India and the Reserve Bank of India (RBI) reined in the rise in inflation and brought it within the Central Bank’s tolerance limit. Good monsoons also helped in ensuring adequate food supply.
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