Excise Duty Cuts On Fuels To Positively Impact Inflation: RBI Governor

"Core inflation has remained elevated... and we are keeping a very close watch onthe evolution of core inflation," RBI Governor said

Government's decision to cut excise duty on petrol and diesel will have a positive impact on inflation, Reserve Bank of India (RBI) governor Shaktikanta Das said on Wednesday.

Addressing a conference, Mr Das said that food inflation is under control however core inflation continues to remain high. In such a scenario, the excise duty cut on petrol and diesel is significantly positive for inflation.

“That (excise duty cut on petrol and diesel) is significantly positive for inflation,” he said, adding that price rise in the country is mainly due to supply-side factors, which have been addressed by the government, he noted.

Government has looked into supply-side factors, especially in context of pulses and edible oils, and now very recently in context of petrol and diesel, Mr Das said.