Expect inflation to drop below 6% soon: Govt sources

Sources in the government have said that inflation is likely to fall below 6% soon.

Sources in the government have said that inflation is likely to fall below 6% soon.

"We expect the inflation rate to fall below 6 per cent soon," sources said. The Modi government also expects to prices of key food items such as edible oil to stabilise soon.

"The monsoon seems favourable, and crude and food prices will eventually come down," sources have told Business Today Television.

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Government sources said Union 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 for reduction in edible oil prices," sources added.

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

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