Inflation will be curbed: Finance Ministry claims, public will get relief from the steps taken by Government-RBI

Expansion

Inflation is not taking its name to stop in India. The increase in the prices of food items to fuel and electricity has increased the burden on the pockets of the public today. According to the data released on Thursday, retail inflation in the country has reached an eight-year peak. However, in the midst of all this, the Finance Ministry claims that the public will get relief from inflation in the coming times.

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Inflation increased more than forecast

The retail inflation data in the country was released by the government on Thursday. Looking at these, the CPI has increased to 7.79 percent in the month of April. Due to this, the retail inflation rate had increased at the rate of 6.95 percent in the last March. Let us inform here that before the release of the data on May 12, several reports quoting finance experts had predicted that retail inflation could reach an 18-month high in April and remain at 7.5 per cent.

Improvement in demand will reduce risk

The Finance Ministry, in its monthly review report for April, has said that the measures taken and measures taken by the Reserve Bank of India (RBI) and the central government will reduce the period of inflation in the fiscal year 2022-23, which is mostly This is due to the increase in the prices of crude oil and edible oil. The ministry said that since aggregate demand is improving gradually, the risk of sustained high inflation remains low.

Recently hiked repo rates

It is worth noting that RBI has changed the repo rates in the past to control the rising inflation in the country. After the Reserve Bank had increased the policy interest rates by 40 basis points, it increased to 4.40 percent. Policy rates were hiked for the first time since May 2020. At the same time, it has been said in a report that RBI may increase interest rates even more now. According to Crisil’s report released on Thursday, it may increase interest rates by up to one percent in June.

This big thing said in the report

The finance ministry report said that despite rising inflation, the government’s capital expenditure-driven fiscal route, as set out in the Budget 2022-23, will help the economy grow at almost Rs. This will help in registering a growth of eight per cent. Referring to forex reserves, it said that even though forex reserves stood at $597.7 billion in the week ended April 29, it provides almost 11 months of import cover to finance investment and consumption.