Inflation deceleration to strengthen economy: PHD Chamber

Inflation deceleration to strengthen economy: PHD Chamber

Inflation deceleration to strengthen economy: PHD Chamber

 

No.PR-28
May 14, 2015
New Delhi

 

Inflation deceleration to strengthen economy: PHD Chamber
 

Continuous deceleration in WPI Inflation will help businesses in terms of increased price cost margins vis-à-vis decreased cost of raw materials, said Mr. Alok B. Shriram, President, PHD Chamber in a press statement issued here today.
 

WPI inflation declined from (-)2.33% in March 2015 to (-)2.65% in April 2015 which can be attributed to decrease in the prices of food articles(5.73%), Potato(-41.14%), Vegetables(-1.32%), fuel & power(-13.03%), petrol(-18.44%) and manufactured products(-0.52%).
 

Lower WPI inflation is also expected to rejuvenate demand in the economy with low and stable prices of the goods, said Mr. Shriram.
 

At this juncture, it becomes inevitable that interest rates environment is also in sync with decreased inflation, said Mr. Alok Shriram.
 

“We urge the RBI to reduce the repo rate atleast by 50 bps in the forthcoming credit policy”, said Mr. Shriram.
 

ENDS.

Koteshwar Prasad Dobhal
Consultant (PR)