Pointed attack on inflation will need to continue: FM Nirmala Sitharaman

July 12, 2022
With consumer price inflation remaining high, Finance Minister Nirmala Sitharaman on Tuesday said item by item monitoring of prices and pointed attack on inflation will need to continue. Her remarks came hours after official data showed that retail inflation in June stood at 7.01 per cent. The print was lower than 7.04 per cent recorded in May but still higher than RBI‘s comfort level of 6 per cent.

“As RBI has estimated, till the start of the second half of the (fiscal) year, both RBI and government will have to be mindful,” she told reporters here.

India‘s fiscal year is from April to March and second half would be from October.

“We will have to be mindful and watchful how the price movement is,” she said. “I will keep monitoring (prices) item by item for anything that goes haywire. This pointed attack on inflation will need to continue.”

The finance minister also said a favourable monsoon will lead to good production and rural demand.