Retail inflation for industrial workers above 11%, SMEs to feel wage pressure
Retail inflation for industrial workers above 11%, SMEs to feel wage pressureNew Delhi, Nov 30 (KNN) The retail inflation for industrial workers has gone up further with food annual inflation exceeding 15 per cent in October 2013 - a development which will certainly exert wage pressure on the industry, hitting the small and medium enterprises the most.
The year-on-year inflation measured by monthly Consumer Price Index – Industrial Workers (CPI-IW) stood at 11.06 per cent for October 2013 as compared to 10.70 per cent for the previous month and 9.60 per cent during the corresponding month of the previous year.
Similarly, the food inflation stood at 15.02 per cent against 13.36 per cent of the previous month and 9.91 per cent during the corresponding month of the previous year, as per the official data released yesterday.
The largest upward pressure to the change in current index came from Food group contributing 2.53 percentage points to the total change. At item level, rice, wheat atta, fish fresh, goat meat, milk, pure ghee, onion, vegetable items, tea readymade, electricity charges, etc…are responsible for the rise in index.
When prices of daily needs increased, the industrial workers are bound to seek higher wages, through market forces, even if it is not possible through collective bargaining.
At centre level, Bhavnagar recorded the highest increase of 9 points each followed by Ahmedabad, Labac Silchar and Kodarma (8 points each) and Vadodara and Surat (7 point each).
Among others, 6 points rise was registered in 8 centres, 5 points in 10 centres, 4 points in 8 centres, 3 points in 9 centres, 2 points in 10 centres and 1 point in 11 centres.
On the contrary, Belgaum and Chhindwada centres reported a decline of 3 points each followed by Mercara (2 points) and Salem, Hubli Dharwar and Puducherry (1 point each). Rest of the 15 centres’ indices remained stationary.
The rising inflation at the retail level is proving to be more than a double whammy for the industry. It leads to demand depression for industrial goods, increase in wages and upward revision in interest rates. (KNN/PC)