June inflation at 4-month low; mfg inflation rises by 3.61%
Updated: Jul 14, 2014 02:44:21pm
New Delhi, Jul 14 (KNN) India’s wholesale price inflation (WPI) has slowed down to a four month low of 5.43 per cent in June as compared to 6.01 per cent for the previous month as the prices of food and fuel shot up last June. However, the manufacturing inflation rose by 3.61 per cent versus 3.55 per cent in May, which is worrisome.
Food inflation eased marginally in June at 8.14 per cent in June; whereas the manufacturing inflation rose by 3.61 per cent versus 3.55 per cent in May.
Also the April WPI inflation number has been revised higher to 5.55 per cent from 5.2 per cent earlier.
The index for - ‘Beverages, Tobacco and Tobacco Products’ group declined by 0.1 per cent; ‘Textiles’ group rose by 0.8 per cent; Wood and Wood Products’ group declined by 0.7 per cent; ‘Paper and Paper Products’ group declined by 0.3 per cent; ‘Leather and Leather Products’ group rose by 0.6 per cent; ‘Rubber and Plastic Products’ group rose by 0.1 per cent; Chemicals and Chemical Products’ group rose by 0.3 per cent; ‘Basic Metals, Alloys and Metal Products’ group rose by 0.1 per cent; and ‘Machinery & Machine Tools’ group rose by 0.4 per cent.
RBI is likely to keep the interest rates unchanged in its monetary policy, as there are prospects of first drought in five years which might impact the food prices. Moreover, the Iraq war has also increased the risk of increase in fuel prices.
Commenting on the index, industry body FICCI said, “The latest WPI numbers indicate moderation in overall inflation as well as in food prices. It is heartening to note that the government is making a serious attempt to address the root cause of spiralling food prices. After, a set of focused measures undertaken by government last month to contain food inflation, the announcements made in the Union Budget regarding- establishment of a Price Stabilisation Fund and a commitment by Centre to work closely with States to re-orient their respective APMCs to provide for establishment of private market yards / private markets - are reassuring. In fact FICCI has been advocating such measures.”
FICCI has suggested creation of a Food Inflation and Response Strategy Team (FIRST) at the Prime Minister’ Office (PMO) level. FIRST will be an e-enabled, empowered coordination framework which can work with and across multiple key governmental agencies, to proactively address food inflation through integrated data management and logistical strategies in the short term. We hope to see time bound action going ahead”, said President, FICCI, Sidharth Birla.
“Further the results of FICCI’s latest Economic Outlook Survey report moderate outlook for inflation this fiscal year. The median forecast for inflation rate as per the survey is around 5.6 per cent by end March 2015. However, below average monsoons might play a dampener and there is likelihood of pressure arising on oil prices as well due to global scenario”, added Birla. (KNN/SD)
Food inflation eased marginally in June at 8.14 per cent in June; whereas the manufacturing inflation rose by 3.61 per cent versus 3.55 per cent in May.
Also the April WPI inflation number has been revised higher to 5.55 per cent from 5.2 per cent earlier.
The index for - ‘Beverages, Tobacco and Tobacco Products’ group declined by 0.1 per cent; ‘Textiles’ group rose by 0.8 per cent; Wood and Wood Products’ group declined by 0.7 per cent; ‘Paper and Paper Products’ group declined by 0.3 per cent; ‘Leather and Leather Products’ group rose by 0.6 per cent; ‘Rubber and Plastic Products’ group rose by 0.1 per cent; Chemicals and Chemical Products’ group rose by 0.3 per cent; ‘Basic Metals, Alloys and Metal Products’ group rose by 0.1 per cent; and ‘Machinery & Machine Tools’ group rose by 0.4 per cent.
RBI is likely to keep the interest rates unchanged in its monetary policy, as there are prospects of first drought in five years which might impact the food prices. Moreover, the Iraq war has also increased the risk of increase in fuel prices.
Commenting on the index, industry body FICCI said, “The latest WPI numbers indicate moderation in overall inflation as well as in food prices. It is heartening to note that the government is making a serious attempt to address the root cause of spiralling food prices. After, a set of focused measures undertaken by government last month to contain food inflation, the announcements made in the Union Budget regarding- establishment of a Price Stabilisation Fund and a commitment by Centre to work closely with States to re-orient their respective APMCs to provide for establishment of private market yards / private markets - are reassuring. In fact FICCI has been advocating such measures.”
FICCI has suggested creation of a Food Inflation and Response Strategy Team (FIRST) at the Prime Minister’ Office (PMO) level. FIRST will be an e-enabled, empowered coordination framework which can work with and across multiple key governmental agencies, to proactively address food inflation through integrated data management and logistical strategies in the short term. We hope to see time bound action going ahead”, said President, FICCI, Sidharth Birla.
“Further the results of FICCI’s latest Economic Outlook Survey report moderate outlook for inflation this fiscal year. The median forecast for inflation rate as per the survey is around 5.6 per cent by end March 2015. However, below average monsoons might play a dampener and there is likelihood of pressure arising on oil prices as well due to global scenario”, added Birla. (KNN/SD)
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