Finance Minister Nirmala Sitharaman affirms that retail inflation has stabilized at present.

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Finance Minister Nirmala Sitharaman affirms that retail inflation has stabilized at present.


Finance Minister Nirmala Sitharaman assured the Lok Sabha on Monday that the country's consumer price inflation is now deemed "stable" and falls within the official tolerance band of 2% to 6%. She attributed the easing pressure on rising prices to a consistent decline in core inflation. Responding to a starred question from MP Sushil Kumar Rinku regarding concerns about steeply increasing retail inflation, the Minister highlighted that India's retail inflation has decreased from an average of 7.1% in April-October 2022 to 5.4% in the corresponding period of 2023. The core inflation, excluding food and energy costs, has also seen a decline from 5.1% in April 2023 to 4.3% in October 2023.

Addressing temporary spikes in inflation, she explained that certain instances were triggered by demand-supply imbalances arising from global shocks and adverse weather conditions. The government and the Central bank collaborated to resolve such mismatches, implementing proactive supply-side initiatives and effective demand stabilization measures.

Ms. Sitharaman emphasized that retail inflation is now stable and within the specified tolerance band of 2% to 6%. She noted that the pace of price increase has generally remained within acceptable limits since the introduction of the tolerance band in 2016.

The Finance Minister credited the steady decline in core inflation as a key factor in alleviating inflationary pressures in the Indian economy. She outlined various government measures to curb inflation, including facilitating imports of essential food items, preventing hoarding, extending the free food grain scheme for five years from January 2024, and increasing subsidy levels for LPG cylinders.

Finance Minister Nirmala Sitharaman
Consumer price inflation
Tolerance band of 2% to 6%
Core inflation decline
Retail inflation trends
India's economic stability
Government initiatives on inflation
MP Sushil Kumar Rinku
Demand-supply mismatches
Free food grain scheme
Proactive supply-side measures
Effective demand stabilization
Economic policy updates
LPG subsidy levels
Global shocks and inflation
Economic resilience in adverse conditions
Import facilitation for food items
Inflationary pressures in the Indian economy
Economic indicators
Monetary policy measures











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