It is worth noting that increase in the prices of manufactured products remained subdued-ASSOCHAM on WPI for March 2014

The Associated Chamber of Commerce and Industry of India (ASSOCHAM) said, headline inflation on year on year basis has indicated snapping of its recent trending down behaviour. Details indicate that the prices of primary food articles particularly, rice, potato, fruits, milk and egg, meat and fish have increased. Prices of fuel and power too have contributed to inflation flaring up.

Mr. Rana Kapoor, President ASSOCHAM said, it is worth noting that increase in the prices of manufactured products remained subdued. Thus, the relationship between industrial inputs and output remained same. Even the moderate growth in core inflation is caused by textiles, leather and plastics. Some of it can be attributed to the election related spending.

The underlying reason for hyper inflation remains that of supply side constraints. The fact that core inflation is at considerably lower than the headline inflation warrants for focus on growth revival. The fundamental objective of RBI policy remains that of ensuring that the cost of finance to the end user becomes competitive, said Mr. Kapoor.

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