December wholesale price index contracts 0.73%
Updated: Jan 15, 2016 03:35:58pm
New Delhi, Jan 15 (KNN) The annual rate of inflation, based on monthly WPI, stood at -0.73 per cent for the month of December, 2015 (over December, 2014) as compared to -1.99 per cent for the previous month and -0.50 per cent during the corresponding month of the previous year.
Remaining negative for the 14th consecutive month, this is also the fourth consecutive month in which the pace of WPI contraction has slowed over the previous month.
“Build up inflation rate in the financial year so far was 0.74 per cent compared to a build up rate of -0.89 per cent in the corresponding period of the previous year,” an official release from the Ministry of Commerce and Industry said on January-14.
Reacting to the latest WPI based inflation numbers, Secretary General, FICCI, Dr. A Didar Singh said, “We see a continuation of the deflationary trend, albeit at a slower pace.
Prices of select food articles, however, continue to exhibit pressure on the upside and this needs continuous monitoring by the government. Raising agri-productivity and astute supply side management is the key to tackling the elevation in prices of food articles.”
“It may be added that the continuation of the deflationary trend is an indication of weak demand in the economy besides being the spillover effect of lower oil and commodity prices. The latest data on industrial production once again highlights the precarious nature of recovery in this sector.
“We hope that the central bank will respond to the situation appropriately and take steps that would aid the process of industrial recovery. At this juncture, propelling growth and creating jobs should be a priority and all policy levers should be geared towards that objective,” the industry body representative added. (KNN Bureau)
Remaining negative for the 14th consecutive month, this is also the fourth consecutive month in which the pace of WPI contraction has slowed over the previous month.
“Build up inflation rate in the financial year so far was 0.74 per cent compared to a build up rate of -0.89 per cent in the corresponding period of the previous year,” an official release from the Ministry of Commerce and Industry said on January-14.
Reacting to the latest WPI based inflation numbers, Secretary General, FICCI, Dr. A Didar Singh said, “We see a continuation of the deflationary trend, albeit at a slower pace.
Prices of select food articles, however, continue to exhibit pressure on the upside and this needs continuous monitoring by the government. Raising agri-productivity and astute supply side management is the key to tackling the elevation in prices of food articles.”
“It may be added that the continuation of the deflationary trend is an indication of weak demand in the economy besides being the spillover effect of lower oil and commodity prices. The latest data on industrial production once again highlights the precarious nature of recovery in this sector.
“We hope that the central bank will respond to the situation appropriately and take steps that would aid the process of industrial recovery. At this juncture, propelling growth and creating jobs should be a priority and all policy levers should be geared towards that objective,” the industry body representative added. (KNN Bureau)
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