Reacting to the latest WPI(Wholesale Price Index) based inflation numbers, the Federation of Indian Chambers of Commerce and Industry(FICCI) on Friday said the continuation of the deflationary trend is an indication of weak demand in the economy.
Dr. A Didar Singh, Secretary General, FICCI said: " the continuation of the deflationary trend is an indication of weak demand in the economy besides being the spillover effect of lower oil and commodity prices. The latest data on industrial production once again highlights the precarious nature of recovery in this sector."
"We see a continuation of the deflationary trend, albeit at a slower pace. Prices of select food articles, however, continue to exhibit pressure on the upside and this needs continuous monitoring by the government. Raising agri-productivity and astute supply side management is the key to tackling the elevation in prices of food articles," Dr. Singh added.
Singh further hoped that the central bank would take appropriate steps for the industrial recovery.
"We hope that the central bank will respond to the situation appropriately and take steps that would aid the process of industrial recovery. At this juncture, propelling growth and creating jobs should be a priority and all policy levers should be geared towards that objective" Dr. Singh said.
