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Commenting on the January CPI inflation contracting by close to 1% to 4.31% over December, the minister said , ”This is now closer to the lower end of RBI’s inflation target which is in the range of 4% “
The FM indicated correction in the prices of tomatoes, onions, and potatoes played a crucial role in bringing down inflation.
Additionally, the government’s decision to allow tariff-free imports of pulses ensured that landed costs did not escalate. These measures, combined with proactive market interventions, are expected to keep food inflation in check, the FM said.
The finance minister said the RBI on February 7, projected consumer price index (CPI) inflation for FY26 at 4.2%, signaling a continued easing of price pressures.
Food inflation, which often spikes due to adverse weather and supply chain disruptions, remains under close watch. A dedicated group of ministers is actively managing the situation, ensuring timely imports in case of supply shortfall, the FM said.
Agriculture boost to keep prices stable
Encouraging projections for agricultural output are expected to further stabilise food prices. As per the first advance estimates (FAE) for 2024-25, kharif food grain production is projected to grow by 5.7%. Rice production is estimated to rise by 5.9%, while tur dal output is set to increase by 2.9% compared to the previous year, Sitharaman said.
With these estimates, the government remains confident that food prices will stay under control. “The kind of advance estimates we are getting indicate that food inflation will be well under the radar,” she said.
Government’s commitment to price stability
The government’s commitment to tackling inflation extends beyond monitoring food prices. Efforts to reduce the burden on common citizens continue through subsidised distribution of essential commodities such as atta (flour), wheat, rice, and chana dal.
“Government’s effort to remove stress of price rise is actually being received, The efforts will continue. We shall make sure that prices should not be a burden on the ordinary citizens. We shall continue to support this subsidised atta, and wheat and rice and chana dal,“ she said.
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