Onus on fuel duty cut to ease price worry

The hike in input costs along with rising crude oil prices are a source of worry on the inflation front but the recent fuel duty cuts should soften the price pressures, the finance ministry said on Wednesday.

“Core inflation, which reflects the hardening of input costs and the ripple effects of escalating global crude oil prices, poses concerns. Yet, these concerns have not embedded themselves in self-fulfilling inflationary expectations as seen in RBI’s inflation survey,” the ministry’s monthly economic report said.

“The recent cut in central excise duty on petrol and diesel prices is expected to soften inflationary pressures exerted by rising crude oil prices.”