Inflation not Major Challenge, says Finance Minister

New Delhi, May 21 (IANS): With the Reserve Bank of India’s monetary policy review due on June 2, Finance Minister Arun Jaitley has said that inflation will not be a significant challenge though a below-average monsoon could possibly impact food prices.

“Global oil prices have moderated; it is excellent for us. Inflation is low because oil prices are low. I don’t think of inflation as significant challenge in days to come,” he told All India Radio’s FM Gold channel.

“Steps taken by the government have kept food prices low and pro-active government will always keep food prices low,” he added.

Wholesale inflation fell further to (-)2.65 percent in April, from (-)2.33 percent in March, having been in the negative zone since November last year.

Retail inflation in April also eased further and fell to a four-month low of 4.87 percent as prices of food items, vegetables and fruits became cheaper.

The Met Office has projected the possibility of below-normal monsoon this year.

On one year of the NDA government, Jaitley said it was “satisfactory” as the nation moved away from a period of despondency and policy paralysis.

“Now the global perspective on India has changed, the direction has been absolutely cleared, scores of actions have been taken to rejuvenate the economy, which have shown the result,” he said.