Inflation as a monetary phenomenon: combine monetary, fiscal and supply-side steps to contain prices while boosting production.
Inflation is primarily a monetary phenomenon driven by rapid money supply and credit growth and supply constraints in primary articles; the Government backs RBI monetary instruments (repo, MSS, CRR) while also using fiscal and supply-side measures-duty cuts, imports and export curbs-to contain prices, and stresses that lasting relief requires raising production and productivity, particularly in agriculture.