Mint Explainer: What is the government doing about rising inflation?
New Delhi: Retail inflation shot past estimates to hit a 15-month high of 7.44% during July. Mint explains the government's efforts to curb soaring inflation? Over the past few weeks, the Centre has introduced a slew of measures to shore up domestic grain supplies, especially wheat, in order to cool local prices. As things stand, wheat export has also been banned to address domestic demand.
They have released buffer stock of certain vegetables in the market after a surge in rates across the country. The government has put a stop to export of non-basmati rice as prices have surged due to a likely shortfall in production. The government is also importing key vegetables and pulses, like tur, masur and urad dal, and tomatoes to address domestic demand.
In his Independence Day speech, PM Modi said that his administration, which is already addressing the issue, will take more steps to tame the price rise to reduce burden on people. Modi emphasized that inflation has impacted countries across the globe. He said that when India imports goods, it also imports inflation.
He added that several steps taken by the government to tame inflation have found varying degrees of success. Finance secretary TV Somanathan told a business news website that inflation, which is at its peak now, is expected to come down in the near future. He said that the government has taken measures to keep prices under control, and vegetable prices, which are mostly to blame for higher headline retail inflation, should start to decline soon.
Read more on livemint.com
