‘Price stability high on govt’s agenda’

‘Price stability high on govt’s agenda’

New Delhi: Price stability remains high on the government’s agenda and the Reserve Bank of India’s monetary policy measures have helped moderate inflation, minister of state for finance Namo Narain Meena told Parliament on Tuesday.

India’s annual headline inflation WPI eased slightly in October to 8.58%, its lowest in 10 months, from 8.62% in September, data on Monday showed.

The Reserve Bank of India (RBI) has raised its key lending and borrowing rates by a total of 150 and 200 basis points, respectively, this year in its efforts to squeeze inflation back to its target of 5.5% by March.

“Government monitors the price situation regularly as price stability remains high on its agenda," Meena said in a written statement to lawmakers.

He also said that the appreciation of the rupee could make Indian exports less competitive in the international market.

The rupee has gained 3.1% year-to-date against the US dollar helped by a record $28.35 billion of foreign funds inflows into Indian equities so far in 2010, compared with last year’s $17.5 billion.