Expect inflation to fall below 6% soon: Govt sources

The government expects prices of key food items like edible oil to stabilise soon. "The monsoon seems favourable, and crude and food prices will eventually come down," sources have told Business Today TV.

Government sources said that finance ministry officials recently held a meeting with leading edible oil associations. With Indonesia lifting its ban on palm oil exports, international edible oil prices are cooling off. "There is further scope of reduction in edible oil prices", sources added. 

"We expect the inflation rate to fall below 6 per cent soon," sources further said. 

With recent action by the Enforcement Directorate on cryptocurrency agencies, the ministry sources said that a crypto legislation is in the works. "It is important to be cautious in actions related to cryptocurrency," sources added.

In the month of May, government had hiked the export duty on certain steel products. The decision was taken to promote domestic production amidst rising inflation. Despite persistent requests by steel industry to withdraw the export duty, sources said no such move was being discussed currently. 

Meanwhile, a Group of Ministers (GoM) on online gaming is expected to submit their report in a few days, which will then be discussed in the next GST Council meeting that is to be held in Madurai during last week of August.

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