The Confederation of Indian Industry (CII) has said the headline inflation, which has eased to a four month low of 5.43 per cent in June 2014 as against 6.01 per cent in the previous month has been brought about by a fall in food and fuel prices even as manufacturing inflation has recorded a marginal rise.
The CII issued a statement saying even though manufacturing inflation had recorded a marginal rise, what was noteworthy was that items such as rice, wheat, vegetables, onions, among others had shown a decline.
"The moderation in inflation together with the rebound in industrial production as per the recently released data, provides a positive signal that the structural bottlenecks afflicting the economy could be gradually showing signs of receding and green shoots of recovery could be around the corner", said Chandrajit Banerjee, Director General, CII.
In this context, the Budget has provided a bold and positive thrust to agriculture.
It is hoped that the measures announced in the budget for agriculture would be implemented on the ground which would address the supply side bottlenecks and pave the way for stable inflation regime for food products.
