Special Topic – Inflation & Cost of Living

Page 5: Solutions, Way Forward & Final Summary

Date: 07 February 2026

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1. Role of Government in Controlling Inflation

The government plays a key role in reducing inflation through policy measures and welfare support.

• Reducing taxes on essential goods
• Ensuring adequate food supply through buffer stocks
• Strengthening Public Distribution System (PDS)

2. Role of RBI and Monetary Policy

The Reserve Bank of India (RBI) controls inflation through monetary tools.

• Adjusting repo rates
• Controlling excess money supply
• Maintaining price stability

3. Support to Farmers and Producers

Supporting farmers helps reduce food inflation in the long run.

• Improved irrigation and storage facilities
• Fair Minimum Support Price (MSP)
• Reducing supply chain losses

4. What Can the Common Man Do?

Individuals can also manage inflation impact through better financial planning.

• Prioritizing essential expenses
• Saving regularly and avoiding unnecessary loans
• Using government welfare schemes

5. Long-Term Structural Reforms

Long-term solutions are required to control inflation sustainably.

• Boosting domestic manufacturing
• Improving logistics and infrastructure
• Promoting digital and efficient markets

6. Way Forward for India

India must balance growth and price stability to protect the common man.

• Inclusive economic growth
• Employment generation
• Stable and predictable policies

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Final Summary

Inflation affects every section of society, especially the common man. A combined effort by the government, RBI, and citizens is essential to control prices and ensure a stable standard of living.

This page concludes the special topic with solutions, policy measures, and future direction.