New Delhi: India Inc on Wednesday said the spike in inflation, which rose to a six-month high of 3.59 percent in October, will ease in the coming months. Wholesale inflation rose to six-month high of 3.59 percent in October as prices of food articles, led by onion and vegetables, witnessed a sharp rise.
The increase was led by firm up of food prices with vegetables segment remaining a key stress point at this juncture, said Pankaj Patel, President, Ficci.
"However, this is due to adverse weather conditions and the situation should ease out in the coming months," he said. The chamber observed that under the present scenario, inflation targeting by the central bank may not be the best approach.
"The manufacturing sector is showing signs of recovery and it is important to support this improvement through all policy levers. The high real interest rates remain a challenge for the industry," Patel added. President of PHD Chamber Of Commerce Anil Khaitan hoped the average inflation will remain below 4 percent for the current financial year.
Commenting on inflation data, Assocham Secretary General D S Rawat suggested the policymakers to take corrective action to address challenges being faced by the industry, like rising interest rates, and limited investment capacity. The government data released on Wednesday showed that inflation in food articles more than doubled to 4.30 percent in October.
Both wholesale and retail prices edged up in the month of October.
Published Date: Nov 15, 2017 15:06 PM | Updated Date: Nov 15, 2017 15:06 PM