Economic survey: Risks of imported inflation due to high energy prices

New Delhi, Jan 31 (KNN) The Economic Survey has flagged imported inflation as a risk due to high energy prices globally the risk of inflation. The inflation in the ‘fuel and power’ group of WPI was above 20 percent reflecting higher international petroleum prices.

"Although the high WPI inflation is partly due to base effects that will even out, India does need to be wary of imported inflation, especially from elevated global energy prices," the Survey said. 

"The Consumer Price Index inflation remained range bound as food prices eased considerably due to the supply management response by the Government. Food inflation remained benign during the year at 2.9 percent (April-December) as against 9.1 percent in the corresponding period last year," the Survey highlighted. 

The wholesale inflation was high due to the base effect and will even out but supply side constraints globally are likely to put pressure on it. The survey said that the economy is well placed to take on challenges of 2022-23.

The Indian government's capital expenditure grew by 13.5 percent year-on-year in April to November, with a focus on infrastructure-intensive sectors like roads and highways, railways, and housing and urban affairs.

The total capital expenditure rose to Rs 2.74 lakh crore in April-November 2021-22 as compared to Rs 2.41 lakh crore a year ago.