Wholesale Price Index (WPI) inflation stood at 5.2 per cent in January 2017, which was the highest in the last 29 months. Consumer Price Index (combined) declined to 3.2 per cent in January 2017 from 3.4 per cent in December 2016. The rise in WPI inflation during January 2017 was mainly due to rise in inflation of Fuel and Power.

The Government has been successful in bringing down the prices of essential commodities through astute food supply management. The Government has taken a number of measures to control inflation. The steps taken, inter alia, include (i) increased budgetary 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.

Price stabilization measures target volatility and essential commodity prices following a rise in wholesale inflation. To check price volatility and ensure supply of essentials the Government increased allocations to a Price Stabilization Fund, created buffer stocks of pulses through procurement and imports, raised Minimum Support Prices to incentivise production, advised States/UTs to take action against hoarding and black marketing under the Essential Commodities Act and the Prevention of Black marketing Act, imposed an export duty on sugar, and reduced import duties on potatoes, wheat and palm oil.