Lok Sabha Question No. 1762 (UNSTARRED), answered on 2018-07-27
Subject: CPI based Inflation
Ministry: FINANCE
Asked by: JYOTIRADITYA MADHAVRAO SCINDIA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 1762

TO BE ANSWERED ON JULY 27, 2018

## CPI BASED INFLATION

1762. SHRI JYOTIRADITYA M. SCINDIA:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Consumer Price Index (CPI) based inflation accelerated at the fastest pace in the last few months;
- (b) if so, the factors responsible for the same;
- (c) whether the Union Government proposes to examine such factors responsible and take corrective steps to check the same; and
- (d) if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PON RADHAKRISHNAN)

(a) to (d) Inflation based on Consumer Price Index - Combined (CPI-C) during the last six months is presented in Table below:

| Table: Inflation (in per cent) based on Consumer Price Index - Combined (CPI-C)   | Table: Inflation (in per cent) based on Consumer Price Index - Combined (CPI-C)   | Table: Inflation (in per cent) based on Consumer Price Index - Combined (CPI-C)   | Table: Inflation (in per cent) based on Consumer Price Index - Combined (CPI-C)   | Table: Inflation (in per cent) based on Consumer Price Index - Combined (CPI-C)   | Table: Inflation (in per cent) based on Consumer Price Index - Combined (CPI-C)   | Table: Inflation (in per cent) based on Consumer Price Index - Combined (CPI-C)   |
|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
|                                                                                   | Jan-18                                                                            | Feb-18                                                                            | Mar-18                                                                            | Apr-18                                                                            | May-18                                                                            | Jun-18 (P)                                                                        |
| CPI - C                                                                           | 5.1                                                                               | 4.4                                                                               | 4.3                                                                               | 4.6                                                                               | 4.9                                                                               | 5.0                                                                               |

Note: P - Provisional.

The headline inflation has remained within the inflation target fixed by the Government (based on the Consumer Price Index -Combined) of 4 per cent with tolerance level of +/- 2 per cent for the period beginning from August 5, 2016 to March 31, 2021.

Government  monitors  the  price  situation  on  a  regular  basis  as  price  stability  is  high  on  its agenda.  Government  has  taken  a  number  of  measures  to  control  inflation  especially  food inflation which, inter alia, include regular review meetings on price and availability situation at the highest level including at the level of Committee of Secretaries, Inter-Ministerial Committee, Price Stabilization  Fund  Management  Committee  and  other  Departmental  level  review  meetings,  a dynamic buffer stock of pulses upto 20 lakh tonnes, appropriate market interventions under Price Stabilization Fund to control price volatility of agricultural commodities as and when required, and advisories  to  State  Governments  to  take  strict  action  against  hoarding  &  black  marketing  and effectively enforce the Essential Commodities Act, 1955 and the Prevention of Black-marketing and  Maintenance  of  Supplies  of  Essential  Commodities  Act,  1980  for  commodities  in  short supply.