Supply/demand mismatch of food articles falling to establise inflation: PHD Chamber

Whole sale Price Inflation (WPI) cooling at 5.05 per cent in January is indicative of the fact that the earlier supply demand- mismatch of various commodities including food articles have begun to shrink and would further narrow down, says President PHD Chamber of Commerce and Industry Mr. Sharad Jaipuria.

We have already seen retail price inflation cooling and with anticipated hike in food production, India will witness further decline in its inflation rates barring oil inflation which might take longer to stablise, added Mr. Jaipuria.

He hoped that the RBI will take note of declining inflation both CPI and WPI and accordingly adjust its monetary stance with reduced repo and reverse repo rates and also prune the cash reserve ratio to enable all segments industry access liquidity.

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