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Inflation under control despite poor monsoon

The government said on Tuesday that comfortable foodgrain stocks, more than two and half times the required minimum buffer stock, has helped keep the general price level within control.

"The inflation rate has been restricted to just three per cent, with foodgrains, which constitute the wage goods for the poor, registering little or no price increase," the mid-year economic review, presented in the Parliament, stated.

The review presented by the Union Finance Minister Jaswant Singh said that harsh drought, in 14 states was likely to dampen this year's economic growth expectations. The most important is the success in containing prices, which, in past, generally tended to rise rapidly after monsoon failures, it said.

Robust economic growth, healthy accumulation of foreign exchange reserves, a much improved performance by infrastructure industries and a revival in overall industrial growth are clear indicators of the buoyancy and resilience that the economy has exhibited in the current year despite several and simultaneous adverse factors, the review added.

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Mid-term Economic Review 2002
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