The Wholesale Price Index (WPI) based inflation increased to 5.2 per cent in January, 2017 from 3.4 per cent in the previous month mainly due to rise in ‘fuel & power’ inflation reflecting hike in global crude oil prices.

The Government has taken a number of measures to control inflation. The steps taken, inter alia, include, (i) increased allocation for Price Stabilization Fund in the budget 2017-18 to check volatility of prices of essential commodities, in particular of pulses; (ii) created buffer stock of pulses through domestic procurement and imports; (iii) announced higher Minimum Support Prices so as to incentivize production; (iv) issued advisory to States/UTs to take strict action against hoarding and black marketing under the Essential Commodities Act 1955 and the Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980; (v) imposed 20 per cent duty on export of sugar; and (vi) reduced import duty on potatoes, wheat and palm oil.

This was stated by Shri Arjun Ram Meghwal, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

Essential commodities enforcement coupled with trade and fiscal measures to stabilise prices and supply of key food items. To address rising wholesale inflation driven by fuel and power costs, the Government adopted a multi-pronged response combining market-stabilising funds and procurement with regulatory and trade measures: increased allocation to a Price Stabilization Fund; creation of buffer stocks through procurement and imports; higher Minimum Support Prices; advisories to States/UTs to enforce the Essential Commodities Act and the Prevention of Black-marketing Act against hoarding; imposition of export duty on sugar; and reductions in import duty on selected food items.