Inflation to remain subdued: PHD Chamber

Inflation to remain subdued: PHD Chamber

Inflation to remain subdued: PHD Chamber

 

No.PR-61
July 14, 2015
New Delhi

 

Inflation to remain subdued: PHD Chamber
 

Subdued WPI Inflation will help manufacturing sector in terms of increased price cost margins vis-à-vis decreased cost of raw materials, said Mr. Alok B. Shriram, President, PHD Chamber of Commerce and Industry in a press statement issued here today.
 

Time is most opportune to capitalize on Make in India programme initiated by Government of India, said Mr. Shriram.
 

Lower WPI inflation is expected to rejuvenate demand in the economy with low and stable prices of the goods. Further, “We believe Inflation should not be a worry in the coming times too vis-à-vis good monsoon behavior coupled with various supply side measures taken by the government”, said Mr. Shriram.
 

However, the implementation process of the dynamic reforms measures should be fastened for visible outcomes, he said.
 

WPI inflation declined from (-) 2.36% in May 2015 to (-) 2.40% in June 2015 which can be attributed to decrease in the prices of food articles (2.88%), Cereals (-0.43), Potato (-52.40%), Vegetables (-7.07%), Egg, Meat & fish (-2.25%) and manufactured products (-0.77%).
 

At this juncture government needs to check the rising prices of pulses and take adequate steps in advance so that prices of pulses are in comfortable trajectory in the coming times, said Mr. Shriram.
 

Nevertheless, it is important that interest rates environment remains in sync with decreased inflation. “We urge the RBI to reduce the repo rate at least by 50 bps in the forthcoming credit policy and another 100 points by end 2015”, said Mr. Shriram.
 

ENDS

Koteshwar Prasad Dobhal
Consultant (PR)