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Economic Survey: Price of essential commodities under control, retail inflation in India is lower than the world – AnyTV News

by Aaryan Srivastav
July 22, 2024
Economic Survey: Price of essential commodities under control, retail inflation in India is lower than the world - India TV Hindi


Photo:ECONOMY SURVEY Dearness

Heavy rain These days, the prices of vegetables have reached the sky. Due to this, the kitchen budget of the people has increased. The retail inflation rate has increased to 5.08% in June. However, the government says in the Economy Survey that the price of essential goods in the country is under control. Not only this, retail inflation in India is lower than the world. According to the Economy Survey report, the Corona epidemic and subsequent geopolitical tensions have posed many challenges on the inflation front. Supply disruptions due to the pandemic and the increase in commodity prices due to global conflicts affected India significantly. As a result, price pressure was seen in key consumer goods and services in FY22 and FY23. Food prices were affected due to adverse weather conditions in the last two years. Due to these developments, inflation increased in FY23 and FY24.

Steps taken to control inflation

However, prudent monetary policy and calibrated trade policy measures by the government, along with robust output growth, helped bring down core inflation to a four-year low in FY24. Expectations of a normal monsoon and moderation in global prices of key imported commodities reinforce the RBI and IMF projections for India that inflation will remain subdued. Further, a price monitoring mechanism as well as focused efforts to increase domestic production of essential food items such as pulses and edible oils will be key to controlling medium to long-term inflation. Currently, India is heavily dependent on imports.

To control inflation, banks around the world increased interest rates. The central bank of India took steps to control inflation. Its effect was also seen. According to IMF data, India’s inflation rate remained lower than the global average and EMDE in 2022 and 2023.

Inflation within target range

India’s inflation rate was within the target range of 2 to 6 per cent in 2023. Compared to advanced economies such as the US, Germany and France, India’s triennial average inflation volatility for 2021-2023 was the lowest. Despite challenges posed by global demand-supply imbalances due to geopolitical tensions, India’s inflation rate was 1.4 percentage points lower than the global average in 2023. The survey talks about trends in retail inflation and its components.

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