Inflation Drops To 5-Year Low Of 2.38% In September

[thedarkknight]

Wholesale Price Inflation dropped to a near five year low in September to 2.38 per cent, helped by moderation in food and fuel prices. The favourable base effect of last year has also benefited the WPI.

 

The WPI based inflation was at 3.74 per cent in August 2014 and 7.05 per cent in September 2013.

 

As per data released by the government on Tuesday, food inflation fell to a nearly 33-month low of 3.52 per cent. The sharp drop in WPI inflation, which fell for the fourth month in a row, comes close on the heels of retail inflation declining to a record low of 6.46 per cent in September.

 

Wholesale inflation in onion contracted to 58.12 per cent in September as compared to a contraction of 44.7 per cent in the previous month. While inflation in vegetable basket as a whole shrunk to 14.98 per cent in September, rate of price rise in potato was at 90.23 per cent from 61.61 per cent in the previous month.

 

The WPI inflation in the fuel and power segment, which includes LPG, petrol and diesel, declined to 1.33 per cent as compared to price rise of 4.54 per cent in August.

 

Commenting on the data, industry body CII Director General Chandrajit Banerjee said, “Going forward, the downslide in global commodity prices led by fuel together with improved monsoon conditions and favourable policy interventions should help contain inflation and prevent prices from resuming its inflationary tendency anytime soon.”

 

He added the prices of manufacturing goods have also declined indicating a favourable impact on core inflation.

 

The inflation in milk, eggs, meat and fish continued to decline in September as well. However, there was slight increase in the prices of fruits during the period.

 

Inflation in manufactured products, like sugar, edible oils, beverages and cement also fell, declining to 2.84 per cent in September as against 3.45 per cent in the previous

month.

 

Industry chamber PHDCCI said it expects a softening policy stance from RBI in the coming times. “We believe a cut in repo rate would be inevitable to revive the industrial growth and demand to pick up pace. Revival of demand scenario would pave the way for revival of investment sentiment,” it said.

 

The RBI, which maintained status quo in interest rate since January, will come out monetary policy review on December 2. Diesel and petrol prices are likely to come down in the wake of sliding global crude prices which is expected to further ease inflationary pressure. The Reserve Bank primarily factors in Consumer Price Index (CPI) inflation while framing monetary policy. It is targeting 8 per cent retail inflation by January 2015 and 6 per cent by January 2016.

 

Meanwhile, wholesale inflation based on final index for July has been revised upwards to 5.41 per cent from the provisional estimate of 5.19 per cent.

 

The build up inflation rate in the financial year till September was at 2.61 per cent compared to a build up rate of 6.23 per cent in the same period of 2013-14.

 

PTI adds

Govt. efforts paid off: Arun Jaitley

Attributing the fall in inflation to initiatives taken by the government, Finance Minster Arun Jaitley on Tuesday exuded confidence that the country was on the way to achieve a low and stable price regime. “It is heartening to note that we have been able to bring food inflation under control. “Growth in vegetable and protein prices that have been contributing to the recent increase in inflation rates have shrunk, thanks to the steps taken by the government,” he said. “We are confident that soon we will be achieving a low and stable inflation rate,” Mr. Jaitley said. The government, he added, was committed to continuing reforms in food markets to improve supply responses and keep inflation low and stable. At the same time, Mr. Jaitley hoped, “fiscal consolidation and a new monetary policy framework will help bring down inflationary expectations.’’

The government is working on a new monetary policy framework under which it will fix the inflation target for the Reserve Bank to achieve. Inflation, both wholesale and retail, came down largely due to fall in prices of the essential food items and fuel.

[thedarkknight]

modi govt vachi 1month kuda kakamundhe tega edisaru eppuu emi antaru allu 

[ARYA]

:3D_Smiles: what a change eppudu 7 to 9 madhya lo udedi maa Rahul Pulka sarkar lo  bye1

[Ekambaram]

thats Modi...AP ke emi cheyyatledu modi

[Sona_Parv001]

thats Modi...AP ke emi cheyyatledu modi

ya naaku kuda ide anipinchindi. but national level lone chaala issues unnayi kada, avanni clear chese panullo paddadu. bcz of congress governance in past it may take more time.