New Delhi, July 4 (KNN) Headline inflation based on the Consumer Price index – Combined (CPI-C) has been declining continuously for the last five years, according to Economic Survey 2018-19.

The Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman tabled the Economic Survey 2018-19 in Parliament today.

The survey states that the economy witnessed a gradual transition from a period of high and variable inflation to the more stable and low level of inflation in the last five years.

The Survey notes, “Headline inflation based on the Consumer Price index – Combined (CPI-C) has been declining continuously for the last five years. Headline CPI inflation declined to 3.4% in 2018-19 from 3.6% in 2017-18, 4.5% in 2016-17, 4.9% 2015-16 and 5.9% in 2014-15.”

The Survey suggests the current phase of low inflation is also marked by reduction in both urban and rural inflation.  It states that the decline in rural inflation is steeper than that of urban inflation since July, 2018 resulting in decline in headline inflation.

Fall in rural inflation is due to moderation in food inflation, which has been negative for last six months (October 2018 to March, 2019), the survey pointed.

The Survey notes that many States witnessed fall in CPI inflation during FY 2018-19 and Inflation in 23 States/ UTs was below 4 percent in FY 2018-19. It further states that as many as 16 States/UTs had inflation rate lower than All India average for FY 2018-19 with Daman & Diu having the lowest inflation followed by Himachal Pradesh and Andhra Pradesh.

According to the Economic Survey, at all-India level, CPI-C inflation during FY 2018-19 was driven mainly by miscellaneous group followed by housing as well as fuel and light group.

The Survey further states that the relative importance of services in shaping up headline inflation has increased as it has contributed more than its weight. 40 items of services account for 23.37 per cent weight in CPI-C.

The Government has taken a number of measures to control inflation specially food inflation.

“The measures, inter alia, taken include both general measures and specific measures”, the Survey adds.

According to the Survey, the general measures include regular monitoring of Inflation, issuing advisories to States against hoarding and black marketing, holding regular review meetings on prices and availability of key commodities, higher Minimum Support Prices for pulses and other crops to incentivize production and setting up of Price Stabilization Fund (PSF) for procurement of agri-horticultural commodities.