Inflation to moderate in coming months: DEA Secretary

New Delhi: Economic Affairs Secretary Ajay Seth today said that the government will continue to evaluate inflation as it is dynamic and continue to take steps. Challenges being faced have an origin outside India including high commodity prices. Global commodity prices have already peaked. The government expects inflation to moderate in the coming months as RBI is also taking measures.

Seth said that no rating agency has estimated lower growth for India than the government's own estimates.

On the cryptocurrency regulations, the Secretary said that the consultation paper on cryptocurrency is fairly ready. Institutional stakeholders, IMF and World Bank have been consulted for the cryptocurrency paper. He said that the government will now soon begin consultations on a broad framework for global consensus on regulations for cryptocurrency.

CPI Inflation for last April was recorded at 7.7 percent after which the government has taken a number of fiscal measures to check inflation. The government cut the excise duty on petrol and diesel. The Centre has put a limit on sugar exports to prevent any increase in prices domestically. Wheat exports have also been banned to prevent any shortages in the domestic market. Duty cuts have been effected on edible oils for a period of two years with the aim to check inflation. RBI had increased the repo rate by 40 bps in a sudden surprise meet. With the tightening in the interest rate cycle likely to continue, the government is hoping that inflation will come under check in the coming months.