FM Nirmala Sitharaman says falling inflation should sustain for long-term

Union Finance Minister Nirmala Sitharaman on Friday said the way in which inflation has come down, it should sustain and should not be momentary or a one-month affair. In an exclusive interview with Rahul Joshi, Group Editor-in-Chief of Network18, Sitharaman said, "Post-Omicron, when we were coming back...the 2022 festival season was in its normal course. Now it (fall in inflation) will sustain itself."

"The way in which inflation has come down, both by RBI’s action and by the government's action — and the government's action has been steady and at it for some time — I expect since the fall in the inflation doesn't seem to be just a momentary or a one-month affair, it should sustain itself in the process of coming down. Therefore, there shouldn't be that much pressure on the central bank to keep the pace of increasing the rates, but the MPC (monetary policy committee) will take a call," she said.

 

She said the twin deficit problems are not as severe as before. Demand does not remain stable; it goes up and down.