Prime Minister Narendra Modi, while delivering his Independence Day speech on Saturday, said his government has successfully brought down inflation from the double-digit mark and promised to initiate more measures to keep prices under control.
"Despite insufficient monsoon, we have been successful in bringing down inflation... Inflation was in double digits before we came to power but because of our initiatives we have managed to bring it down to 3-4%," said Modi from the ramparts of Red Fort.
While retail inflation dropped to a multi-year low of 3.78% in July, the wholesale price index-based (WPI) inflation touched a historic low of (-)4.05%. Inflation has declined mainly on account of cheaper food prices, including those of vegetables, fruits and cereals.
Finance minister Arun Jaitley had said on Friday that low inflation figures, along with other macro economic data, reflects a stability of the economy.
"That is (low inflation) a very positive sign as far as we are concerned... This speaks of the stability of economy that we are in... Inflation is under control, IIP figures are quite encouraging, the indirect tax revenue figures are extremely encouraging... even if you take out the additional revenue measures, we still have a significant growth," Jaitley had said.