Inflation rate for essential goods down

NEW DELHI: The Government today said its efforts to rein in surging prices have brought down inflation rate for essential commodities to 3.67 per cent as on February 24 against 6.77 per cent two months back.

Government has been taking necessary steps to contain inflation, Minister of State for Finance P K Bansal told Rajya Sabha in a written reply.

To another question, Bansal said there is no one-to-one correspondence between expansion of money circulation and rate of inflation.

Higher expansion in M3 (broad money) is also to be viewed in the context of the overall performance of the economy during the relevant period, he said.

The increase in money supply can be attributed to the credit expansion facilitating the growth in real GDP as well as to the flow of foreign exchange reserves, he said.

Pay Commission: The Government has not asked the Sixth Pay Commission to submit an interim report in view of the inflation and rise in prices of various commodities, the Minister of State for Finance said in another reply.

However, the Terms of Reference of the Sixth Pay Commission has a provision that the Commission can examine the desirability and the need to sanction any interim relief to the Central government employees till the time of submission of the report.