A reduction in passenger and freight costs will help price stability, the finance minister said.

In a statement shortly after the railway budget, finance mionister P Chidambaram said, "The railway minister has reduced passenger fares across the board. He has also moderated the freight charges. These will have a beneficial impact on price stability."

Complimenting railway minister Lalu Prasad Yadav for presenting a "growth-oriented" budget, across-the-board reduction in passenger fares, moderating of freight charges and other benefits have shown how the benefits of growth have been passed on to consumers, while continuing to post profits.

Chidambaram also said that by taking into account the inflationary situation, the railway minister had also shown how the government was making efforts to moderate the price situation.