The Wholesale Price Index (WPI) based inflation increased to 5.2 per cent in January, 2017 from 3.4 per cent in the previous month mainly due to rise in ‘fuel & power’ inflation reflecting hike in global crude oil prices.
The Government has taken a number of measures to control inflation. The steps taken, inter alia, include,
(i) increased allocation for Price Stabilization Fund in the budget 2017-18 to check volatility of prices of essential commodities, in particular of pulses;
(ii) created buffer stock of pulses through domestic procurement and imports;
(iii) announced higher Minimum Support Prices so as to incentivize production;
(iv) issued advisory to States/UTs to take strict action against hoarding and black marketing under the Essential Commodities Act 1955 and the Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980;
(v) imposed 20 per cent duty on export of sugar; and (vi) reduced import duty on potatoes, wheat and palm oil.
