Finance Minister P Chidambaram today said both the government and the RBI have acted in tandem to bring down price rise, even as food inflation at 8.8% still remains a worry.
"Both the government and RBI have acted in tandem (to bring down inflation). While our efforts have not been in vain, there is still some distance to go," he said in the Interim Budget for 2014-15.
Chidambaram, however, said: "Food inflation still remains a worry although it has declined sharply...." The wholesale price based inflation has fallen to a 8 month low of 5.05% in January, while the retail inflation was at a two-year low of 8.79%.
Inflation in food articles category in January stood at 8.8%. It was 13.68% in the preceding month.
The central bank factors both retail and wholesale price based inflation data in its monetary policy.
The Reserve Bank had increased a key interest rate by 0.25% to 8% in its Third Quarter Review of Monetary Policy on January 28.