Govt to intensify measures to control inflation: Fin secy

Decisions must be taken with a medium-term view, says Somanathan

- SHRIMI CHOUDHARY

The central government will take a medium-term view while intensifying efforts to reduce the inflationary burden, and will avoid any knee-jerk reaction to transitory price rises, Finance Secretary T V Somanathan told Business Standard in New Delhi.

"The government has taken a number of measures for inflation control. They are ongoing and will be intensified. But I would also say that these decisions have to be taken with a medium-term view, and not necessarily based on one-two weeks/months figures, as they may have an impact on trade policies and have consequences over a longer period. So they have to be taken carefully," Somanathan said.

India's retail inflation hit a 15-month high of 7.44 per cent in July, breaching the Reserve Bank of India's upper tolerance level of 6 per cent for the first time in five months.