Citibank predicts relief: Cooking gas price cut to tackle inflation

Citigroup says India’s cut to cooking gas cost might help slow inflation and shift attention to lowering the price of petrol and diesel ahead of certain important festivals and critical elections. Economists at Citibank, in a research note, said the government's plan to cut the price of cooking gas might ease inflation by roughly 30 basis points. Citibank economists suggested that more fiscal measures need to be discussed to reduce inflation and boost rural incomes. The economists noted that excise tax cuts are a possible solution to the high cost of fuel and getting inflation under control.