Govt taking fiscal measures to control inflation: FinMin
New Delhi: The government Tuesday said it is taking fiscal measures to control price rise in essential commodities and inflation has started showing signs of moderation.
"Fiscal and administrative measures have been taken to contain price rise of essential commodities ... Inflation has already started showing some moderation in the last three months," Minister of State for Finance Namo Narain Meena said in a written reply to the Rajya Sabha.
The overall inflation, as measured by wholesale prices, stood at 6.95 percent in February. It had come down to 6.55 percent in January, from 7.74 percent in December.
Inflation had remained in double digits for most part of 2011.
"Reserve bank of India has also adopted a monetary policy to contain inflation and inflationary expectations," Meena said, adding that the government monitors the price situation regularly.
He said the factors contributing to inflationary situation were high prices of primary articles, like vegetables and protein-based items.
Besides, high global commodity prices, including crude oil, which led to elevated costs in manufactured items also led to the inflationary pressure, Meena added.
In a separate reply to the Rajya Sabha, Minister of State for Finance S S Palanimanickam said that his ministry had received a suggestion from banks for reducing the lock-in period for term deposits eligible for deduction under Section 80C of the Income Tax Act from 5 years currently to 3 years.
"However, the suggestion was not found feasible," he said.