NEW DELHI: Prices of commodities should moderate in the coming months as the government took a slew of measures to control raging inflation, Economic Affairs Secretary Ajay Seth said on Monday. He added that the prices of commodities in May have moderated from the peak.
“We expect in the coming months, inflation will moderate. The government has taken several measures from the fiscal side and RBI too is taking steps from the monetary side to cool off the inflationary pressure,” Seth said on the sidelines of an event here,” Seth said.
The retail inflation in April hit an 8-year high of 7.9%, much above the RBI’s upper band of 6%. Also, the wholesale-price-based inflation has been in double digits for thirteen months in a row. In April, the WPI-based inflation stood at 15.08%. Meanwhile, India’s apex bank in a surprise move on May 4 hiked the repo rate by 40 basis points to 4.4%, while indicating more rate increases in the coming times.
Vivek Johri who is the chairman of the Central Board of Indirect Taxes and Customs said the recent import duty cuts on edible oil, steel, and iron inputs, and curbs on wheat and sugar imports would cost the Centre Rs 10,000 crore to Rs 15,000 crore this fiscal. The government has also slashed excise duty on petrol and diesel, which will cost it Rs 1 lakh crore, he added. Seth also said the government will soon finalise a consultation paper on cryptocurrencies with inputs from various stakeholders and institutions.