Lok Sabha Question No. 230 (UNSTARRED), answered on 2025-02-03
Subject: Uncontrolled Inflation
Ministry: FINANCE
Asked by: Shri Balya Mama Suresh Gopinath Mhatre, Shri Dinesh Chandra Yadav, Dr. Kalanidhi Veeraswamy, Dr. Kirsan Namdeo

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 230 TO BE ANSWERED ON 3.02.2025

## Uncontrolled Inflation

## 230. DR. KIRSAN NAMDEO: DR. KALANIDHI VEERASWAMY: SHRI BALYA MAMA SURESH GOPINATH MHATRE: SHRI DINESH CHANDRA YADAV:

Will the Minister of FINANCE be pleased to state:

(a) whether common people are facing a lot of difficulties due to uncontrolled inflation and the cost of meals for the common people has increased due to 25-50 per cent rise in prices of food items, groceries and household items;

(b) if so, the details thereof;

(c)  the  steps  taken/being  taken  by  the  Government  to  control  inflation  and  prices  of  essential commodities such as food items, fuel, etc.;

(d) whether low income, unemployment, high cost of petroleum products and low productivity of crops due to climate change are the main reasons for high inflation and price rises in the country;

(e) if so, the details thereof;

(f) whether the Government is aware of the huge impact of rising commodity prices on the country, leading to stress among people, business facing losses and some even shutting down due to increased costs; and

(g) whether the Goods and Services Tax (GST) has imparted the rising prices of goods and services in the country?

## ANSWER

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

(a) & (b): Headline retail price inflation, which is based on the prices of food, fuel and other items of household consumption, moderated to 4.9 per cent in 2024-25 (April-December), compared to 5.4 per cent in 2023-24, making essential items more affordable to the common man

(c) The government is regularly taking measures to control prices of essential commodities. These measures include building buffers of key food items, periodically releasing these items into the open market, adopting trade policies to enhance domestic food availability, preventing hoarding by setting and revising stock limits, distributing select food items at subsidised prices through designated retail outlets and periodic reduction in the retail selling prices of domestic LPG.

(d) & (e): The per capita net national income of the country at constant prices is estimated to grow at an average rate of 6.3 per cent during 2023-24 and 2024-25. As per the Periodic Labour Force Survey, the unemployment rate in usual status has declined from 4.1 per cent in 2021-22 to 3.2 per cent in 2023-24. Retail inflation in petroleum products (LPG, diesel and petrol) was negative during AprilDecember  2024.  However,  food  inflation  is  affected  by  weather-affected  production  losses  and supply chain disruptions.

(f)  Retail  inflation  moderated  from  2023-24  to  2024-25  (April-December).  The  wholesale  price inflation  that  broadly  tracks  the  cost  of  production  remained  low  at  2.2  per  cent  during  2024-25 (April-December). The number of unincorporated non-agricultural enterprises increased from 6.5 crore  in  2022-23  to  7.34  crore  in  2023-24  as  per  the  Annual  Survey  of  Unincorporated  Sector Enterprises. Similarly, the number of factories in the country also increased from 2021-22 to 202223, as per the Annual Survey of Industries.

(g) The GST rates on a number of items have been suitably changed from time to time by the GST Council to provide relief to consumers.

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