Finance Minister Says India’s Inflation Is Set to Stay Tame Over the Next Few Months

In a modestly‑toned address to the lower house on Wednesday, Finance Minister Arun Jaitley reassured lawmakers that India’s inflation outlook looks fairly calm for the near‑future. He said the consumer‑price index is expected to hover comfortably within the 4%‑plus‑or‑minus‑2% tolerance band that the government has set as its target.

“We are not seeing any major shock‑waves on the price front,” Jaitley said, pausing briefly before adding that recent data on food prices – a historically volatile component – have shown a gentle easing. “If this trend continues, it will give us the breathing space we need to focus on growth.”

The minister pointed to a combination of factors that are helping to keep price pressures in check. Global oil prices, he noted, have been relatively stable, easing import‑related cost pressures. At the same time, the government’s continued subsidies on essential commodities and the steady flow of grains from the public distribution system have cushioned the impact of any short‑term supply glitches.

He was quick to stress that the fiscal picture remains under control. “Our fiscal deficit is narrowing, and the debt-to-GDP ratio is on a manageable trajectory,” Jaitley remarked, adding that a disciplined fiscal stance is a key pillar in the broader effort to anchor inflation expectations.

Looking ahead, the finance minister forecast a modest but steady expansion in real GDP, buoyed by a resilient export sector and robust domestic demand. He cautioned, however, that the government will stay vigilant, ready to intervene should any external shock – such as a sudden spike in crude prices or a sharp weather‑related dip in agricultural output – threaten to derail the price‑stability narrative.

Overall, the message was clear: while the Indian economy may face typical ups and downs, the policy toolkit is well‑positioned to keep inflation in a comfortable lane, allowing growth to pick up without the burden of runaway price hikes.