The government will keep the inflation rate below five per cent to ensure price stability in the system, Economic Affairs Secretary Rakesh Mohan said on Monday.
The goverment was keeping a watch on inflation, which has to remain below 5 per cent, he said in reference to the recent surge in international crude oil prices.
Oil prices, which had dropped below $45 a barrel, have gone beyond $50 a barrel, Mohan said, addressing the 'CFO Summit' organised by Confederation of India Industry in Mumbai.
The statement from the secretary comes at a time when inflation, as measured by Wholesale Price Index, touched a 40-week low of 4.83 per cent during the week ended February 26.
Inflation in the 90s was averaging seven per cent and the government has been able to contain inflationary expectations, he said.
Last year, as soon as inflation reached a 7 per cent mark, a huge concern was expressed by stakeholders, indicating sensitivity for price stability, Mohan added.