According to Dr C Rangarajan chairman of Economic Advisory Council to the prime minister of India, it is very important to tame inflation to 5 per cent in the medium term.

Speaking on the current economy and policy options at the College of Defence Management Dr Rangarajan said that “We need to use all policy instruments to achieve this.”

He noted that along with measures to increase supply of essential items, the monetary and fiscal policies had to be tightened.

He added that the food inflation was expected to come down in the coming months due to monsoon.

(Sourced from BL)