Food and energy costs rose in September, so retail inflation rose from 7% in August to 7.4%. He attributed the expected decrease in inflation in October to the measures taken by the government and the RBI in the last 6-7 months.
Speaking at the HT Leadership Summit, Das said that since inflation above 6 percent would be detrimental to GDP, the inflation target should not be changed. The government has directed the rate-setting Monetary Policy Committee, headed by the RBI Governor, to manage inflation in the range of 2-6%.
Das stated that the macroeconomic fundamentals of the Indian economy remain solid and growth prospects are promising.
“We expect the October figure to be released on Monday to be lower than 7 percent. Inflation is a concern which we are now addressing and managing effectively,” he said.
He claimed that in the last six to seven months, both the government and the RBI have taken several steps to control inflation. He continued that the RBI has hiked interest rates and the government has also announced a number of supply-side initiatives.