Inflation will not be a significant challenge: FM Arun Jaitley

New Delhi: Finance Minister Arun Jaitley said inflation will not be a significant challenge though there is a possibility of below average monsoon and food prices getting impacted.

"Global oil prices have moderated, it is excellent for us. Inflation is low because oil prices are low... I don't think in days to come inflation (will be a) significant challenge," he told AIR's FM Gold channel.

Moreover, Jaitley added, "steps taken by the government has kept food prices low and pro-active government will always keep food prices low".

He said this in response to a question on the possibility of below normal monsoon impacting food production and prices in the months ahead.

The challenges before the government, Jaitley said, include the possibility of weak monsoon, promoting private investment and dealing with the global economic problems.

The meteorological department has projected the possibility of below normal monsoon which may have implications on country's food production.

Replying questions on the one year of the NDA government, Jaitley said it was a "satisfactory" year as the nation moved away from a period of despondency and policy paralysis.

"The year started with state of despondency, which was plagued by absence of decision making, directionally we were not clear which way to go. Economic activities were shrinking.

"Now the global perspective on India has changed, the direction has been absolutely cleared, scores of scores of actions have been taken to rejuvenate the economy and that has shown the result," he said.

Deflationary pressure has pulled wholesale inflation to (-) 2.65 per cent in April, from (-) 2.33 per cent in March.

Inflation, as measured on the Wholesale Price Index (WPI), has been in the negative zone since November, 2014.

Retail inflation in April has also softened further and fell to a four-month low of 4.87 per cent as prices of food items, vegetables and fruits turned cheaper.

Dismissing arguments that the New Black Money Law will only curb the circulation of black money and not generation, Jaitley said: "I don't think that's correct. We may get some reasonable amout of money as a result of the disclosure to be made under Black Money Law.