14/10/2014: Data release for WPI for September at 2.38 percent shows that inflation fell significantly dipping to a 5 year low. Data for consumer price inflation for September at 6.46 percent released yesterday had also shown a decline. It is heartening to note that we have been able to bring food inflation under control. Growth in vegetable and protein prices that have been contributing to the recent increase in inflation rates have shrunk thanks to the steps taken by the government. We are committed to continuing reforms in food markets that will improve supply responses and keep inflation low and stable. At the same time, fiscal consolidation and a new monetary policy framework will help bring down inflationary expectations. We are confident that soon we will be achieving a low and stable inflation rate.

Inflation control through food market reforms and fiscal and monetary measures to sustain lower inflation expectations. Inflation control is being pursued through government interventions that have reduced food price pressures and through continued food market reforms to improve supply responses. Fiscal consolidation and a new monetary policy framework are described as complementary measures to anchor inflationary expectations and sustain a low, stable inflation rate.