Inflation based on wholesale prices rose to 2.93 per cent in February over the previous month due to hardening of prices of primary articles, fuel and power, according to government data released Thursday.
Among food articles, potato prices became cheaper substantially with inflation at 48.68 per cent in December, as against 86.45 per cent in November.
The Central Statistics Office (CSO) data showed the Consumer Food Price Index (CFPI) deflated further to (-) 2.61 per cent in November from (-)0.86 per cent in October 2018.
According to the government data released Wednesday, food articles witnessed softening of prices with deflation at 1.49 per cent in October, against 0.21 per cent September.
The RBI also underlined that inflation was under control and that the $75-billion currency swap agreement with Japan announced on Monday would provide additional resources to the country.
The inflation based on consumer price index (CPI) had declined to a 10-month low of 3.69 per cent in the previous month. In September 2017, it was at 3.28 per cent.
However, WPI inflation on manufacturing products increased from 4.26 per cent to 4.43 per cent.
The suggestions were made by some members of the Parliamentary Standing Committee on Transport, Tourism and Culture during a meeting with senior officials of the Civil Aviation Ministry on Wednesday.
Against the backdrop of the rupee breaching the 69-mark versus the US dollar and touching lifetime lows on Thursday, Finance Minister Piyush Goyal emphasised that there is no need for any knee-jerk reaction to deal with the situation.
Consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices kept the rupee under pressure.
Arguing that BJP-led government was committed to fiscal consolidation, PM Modi said that the rising crude prices have not resulted in a spike in inflation and the macroeconomic fundamentals of the country remain strong.
The ex-FinMin claimed that effects of demonetisation were still evident on India's economy and holding up return on GST filling has further stressed the business owners.
Fuel price hike burns public's pocket, govt likely to take steps over petrol, diesel price hike
Wholesale price-indexed (WPI) inflation in India during April rose to four-month high at 3.18 per cent on increasing prices of petrol and diesel as well as fruits and vegetables.
However, it added a note of caution: "In India, given increased inflation pressure, monetary policy should maintain a tightening bias."
According to global financial services major UBS, the tone of the policy statement by the RBI’s monetary policy committee (MPC) is expected to “remain cautious while maintaining a neutral policy stance”.
Economic Affairs Secretary Subhash Chandra Garg said the government will come out with inflation-indexed bonds linked to CPI or retail inflation. Also, government securities of 1-4 years duration will be introduced.
The ease in the inflation number was mostly driven by lower food prices. However, the figure remains higher than the 4 per cent target of the Reserve Bank of India.
Calculated on the basis of Wholesale Price Index (WPI), the inflation was 3.58 per cent in December 2017 and 4.26 per cent in January 2017.
The agitations will be led by Mumbai Regional Congress Committee (MRCC) President Sanjay Nirupam, with party's municipal corporators, former and sitting legislators, parliamentarians and former ministers.
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