RBI's Report on Inflation Control Can't Be Made Public: Govt

IANS 12 December 2022

Investor Interest

The Central government cannot make the Reserve Bank of India's (RBI's) report on the reasons for the failure to control inflation as the RBI Act does not provide for this, the Parliament was told on Monday.

Responding to a question from Lok Sabha member Jayadev Galla on whether RBI had submitted its report on the reasons for not controlling the inflation at 6% and whether the government would make the report public, minister of state for finance Pankaj Chaudhary confirmed that the central bank has submitted a report as mandated under Section 45ZN of the RBI Act and Regulation 7 of RBI Monetary Policy Committee and Monetary Policy process Regulations, 2016.

"The said provisions of the RBI Act, 1934, and Regulations therein does not provide for making the report public," he added.

Replying to another question, the minister of state says soaring commodity prices at the international level and pandemic-induced supply-demand imbalances have caused a rise in the inflation rate worldwide, including in India. "The Russia-Ukraine conflict has exacerbated the inflationary pressures in crude oil, gas, metals and edible oils (sunflower). Further, the onset of heat waves and uneven rainfall in the later part of the monsoon season has led to crop damage and a rise in vegetable prices. Recently, the inflation rate has come down to 6.77% in October 2022."

"Several supply-side measures have been taken by the government to address inflation and to ensure that the poor do not have to bear the extra financial burden. These include inter alia, reduction in excise duty by Rs8 per litre on petrol and Rs6 per litre on diesel on 21 May 2022, prohibition of the export of wheat products under HS Code 1101, imposition of export duty on rice, reduction in import duties and cess on pulses, rationalisation of tariffs and imposition of stock limits on edible oils and oil seeds, maintenance of buffer stock for onion and pulses, the inclusion of soya meal as an essential commodity in the schedule of the Essential Commodities Act, 1955 and imposition of a stock limit on soya meal," he added.

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