Supply management, cut in fuel duties, key to control prices
Without giving any guidance for retail inflation going forward, the Economic Survey 2021-22 on Monday said prices were mostly controlled during the current fiscal year so far on the back of better supply side management, as well as reduction in duties in fuel prices.
image for illustrative purpose
New Delhi: Without giving any guidance for retail inflation going forward, the Economic Survey 2021-22 on Monday said prices were mostly controlled during the current fiscal year so far on the back of better supply side management, as well as reduction in duties in fuel prices.
However, imported inflation in edible oil and pulses jacked up the prices of these commodities, which were controlled by proactive measures by the government. On the retail front, consumer price index-based inflation has remained well within RBI's sub 6-per cent comfortable zone during April-December period of FY22. However, wholesale prices witnessed a sharp uptick at over 12 per cent due to pickup in economic activities, sharp spike in global crude oil prices as well as high freight costs, the Survey said. "As economic activity started showing signs of picking-up in the second year of the pandemic, the global economy faced the fresh challenge of rising global inflation. "Covid-19 related stimulus spending in major economies along with pent-up demand boosting consumer spending pushed inflation up in many advanced and emerging economies," said the Economic Survey 2021-22 which was tabled in Parliament.
