Inflation seen at 6.4-6.6 pc after 8 weeks

“Our endeavour is to maintain price stability consistent with growth. We need to grow at 8 per cent,” Kumar, whose ministry releases inflation data every week, told a news conference.

India’s headline inflation rate has been rising steadily this year and hit a three-year high of 7.57 per cent in mid April on costlier food, metals and fuels.

The federal government has, in the recent months, cut import duties on edible oils, banned export of rice and cement and asked steel firms to roll back price rises to fight inflation.

The central bank maintained a tight monetary stance, and last month it raised the cash reserve ratio by 25 basis points to 8.25 per cent, its highest level in seven years, to drain extra cash.

“I think the cumulative effect (of fiscal and monetary steps on wholesale price index) will be in the range of about one per cent. It could come down to 6.4 or 6.5 or 6.6 per cent in the coming eight weeks,” Kumar said.

STEEL, CEMENT UNDER SCANNER

Reeling out latest price data of key commodities, Kumar said prices of most commodities were showing a declining trend.

While steel firms on Wednesday assured government of cutting prices, Kumar said the government has also got assurance from cement firms on price cuts.

“That is why we are engaging with the industry. We are not controlling prices by fiat,” he said.

The industry ministry has requested finance ministry to offer tax relief to cement firms hit by rising input costs, he said.