The government today said the Reserve Bank will consider appropriate policy actions to tighten money supply to bring down inflation.Talking to reporters in New Delhi today the Finance Minister Pranab Mukherjee said that food inflation has started coming down a little bit. He said with expectation of a good monsoon and said prices will start coming down from the middle of July onwards.The Minister attributed rising prices to shortage of certain commodities, besides the impact of base effect.On possibility of raising fuel prices, Mukherjee said, the decision on the report of the Kirit Parikh committee will be taken up when the EGOM fuel prices meets. Meanwhile Industrial buoyancy and higher rates have pushed up the collection of indirect taxes.Customs, central excise and service tax have registered an increase of 49 per cent to around 35,000 crore rupees during April-May this fiscal. Speaking to reporters on the side lines of conference of chief commissioners and director generals of indirect taxes, the chairman central Board of Excise and Customs, V Sridhar attributed that increased economic activity led to the higher tax collections. He said that the government proposes to increase the collection of indirect taxes by 29 per cent this fiscal.
News On AIR | June 15, 2010 6:11 PM
RBI will consider appropriate policy actions to bring down inflation: Centre