Negative inflation strengthening the economy: PHD Chamber

Negative inflation strengthening the economy: PHD Chamber

Negative inflation strengthening the economy: PHD Chamber

 

No.PR-116
October 14, 2015
New Delhi

 

Negative inflation strengthening the economy: PHD Chamber
 

Continuous negative growth of WPI Inflation is facilitating the businesses in terms of increased price cost margins vis-à-vis decreased cost of raw materials. Also there are signs of revival in demand scenario, said Mr. Alok B. Shriram, President, PHD Chamber in a press statement issued here today.
 

The growth of the industry sector is becoming visible. The recent IIP has posted a growth of 6.4% with a remarkable growth in capital goods, manufacturing and consumer durables, he said.
 

The WPI inflation remained in negative trajectory at (-)4.5% in September 2015. We expect it to remain subdued in the coming months too, he said.
 

And with the inflation remaining in comfortable trajectory, easy monetary policy stance to expand further in terms of more repo rate cuts as there is a strong need to boost up demand in the economy, he said.
 

However, there is a need to check the price of food articles where there is increase in inflation in onion at about 114% and Pulses at around 39%.
 

The dietary habits in India are changing and people are now consuming more protein items and demand for perishables are increasing. So there must be focus on crop diversification to meet the demand for perishables, said Mr. Shriram.
 

ENDS

Koteshwar Prasad Dobhal
Consultant (PR)