Lok Sabha Question No. 2038 (UNSTARRED), answered on 2023-03-13
Subject: Rise in Inflation Rate
Ministry: FINANCE
Asked by: Kalyan Banerjee

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 2038

TO BE ANSWERED ON 13.03.2023

## RISE IN INFLATION RATE

2038. SHRI KALYAN BANERJEE:

Will the Minister of FINANCE be pleased to state:

- (a) whether the country's current indexed to inflation rate has increased to 331 in 2022-23 against 272 in 2017-18 and if so, the details thereof;
- (b) whether cost inflation rate has increased over 121.70 per cent against 2017-18 and 138 per cent in comparison to 2014-15 with base year as 2001-02 and if so, the details thereof; and
- (c)  the  action taken/being taken by the Government to reduce cost inflation rate and generate income capacity to bridge the inequality gap in the country?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a):  Consumer  Price  Index-Industrial  Worker  (CPI-IW)  since  2014-15  with  base year 2001=100 is given below
- (b):  In  2022-23(April-January),  CPI-IW  index  has  increased  over  32.6  per  cent against 2017-18 and 50.0 per cent in comparison to 2014-15 with base year as 2001.

| Year                    |   CPI-IW (General Index) (Annual Average) |
|-------------------------|-------------------------------------------|
| 2014-15                 |                                       251 |
| 2015-16                 |                                       265 |
| 2016-17                 |                                       276 |
| 2017-18                 |                                       284 |
| 2018-19                 |                                       300 |
| 2019-20                 |                                       322 |
| 2020-21                 |                                       333 |
| 2021-22                 |                                       357 |
| 2022-23 (April-January) |                                       377 |

Source: Labour Bureu

Note: Linking  factor of 2.88 is used to convert index numbers of 2021-22 and 2022-23(April-January) from base year 2016=100 to base year 2001=100.

(c): The price situation of essential commodities is monitored by the Government on a regular basis and corrective action is taken from time to time. Several supply-side measures have been taken by the Government to address  inflation and to ensure that the poor do not have to bear the extra financial burden. These steps, inter alia, include reduction in excise duty on petrol and diesel, maintenance of buffer stock for onion and pulses, imposition of stock limits on edible oils and oil seeds, monitoring of stocks declared by entities to prevent hoarding and also requisite changes in trade policy instruments.

In addition, measures especially directed towards the vulnerable section include the Targeted  Public  Distribution  System,  under  the  National  Food  Security  Act,  2013 (NFSA)  which  is  the  largest  public  food-security  program  in  the  world  covering around  80  crore  people  in  the  country.  This  benefit  is  being  provided  through Pradhan  Mantri  Garib  Kalyan  Anna  Yojana.    Also,  the  Government  of  India  is encouraging various projects involving substantial investment on schemes like Prime Minister's  Employment  Generation  Programme,  Mahatma  Gandhi  National  Rural Dayal  Upadhyaya  Grameen Livelihoods

Employment Guarantee Scheme  and Pt. Deen Kaushalya Yojana, Deen  Dayal Antodaya Yojana-National Urban Mission for generating income capacity to bridge the inequality gap in the country.

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