November 12, 2018
PHD Chamber appreciates fall in inflation to 3.31%, growth of IIP at 4.5%
While appreciating the fall in CPI inflation from 3.7% in September 2018 to 3.31% in October 2018, Mr. Rajeev Talwar, President, PHD Chamber of Commerce and Industry said that benign inflation conditions and strong footing in the industrial development are expected to boost further the sentiments of investors and increased FDI and FII inflows in the coming months.
Growth of IIP at 4.5% in September 2018 and the average growth of April-September 2018 at 5.1% is indicative of strong footing of the industrial growth and consistency, going forward, said Mr. Talwar.
We expect the IIP numbers to improve for the month of October 2018 vis-à-vis festive demand, said Mr. Talwar.
The reforms undertaken by the government are highly appreciable and breakthrough in Ease of Doing Business with an improvement of 23 spots this year to rank at 77th from 100th rank last year is expected to boost the sentiments of producers and growth of IIP is expected to become stronger in the coming months, said Mr. Talwar.
The growth of infrastructure goods/ construction goods at 9.5% and Electricity at 8.2% in October 2018 envisages growth in employment, going forward.
The fall in CPI on the other hand, can be attributed to fall in inflation in food and beverages (-0.14%), Clothing and Footwear (3.55%) and Housing (6.55%).
Stability in retail inflation would help strengthening of macroeconomic environment and pave the way for soft monetary policy regime, going forward, said Mr. Talwar.
Koteshwar Prasad Dobhal