- Increased price growth is observed in food, fuel, manufactured goods, beverages, tomato with the greatest increase seen in diesel prices.
- Strong rise seen in Wholesale Price Index inflation is due to supply side constraints in the agricultural side since demand in the economy was weak.
- Confederation of Indian Industry CII urged the government to control inflation by initiating supply side initiatives:
- to raise agriculture productivity,
- augmenting investment in agri-infrastructure
- improving supply side management,
- delisting perishables from Agriculture Produce Marketing Committee
- encouraging foreign direct investment in retail.
- Read at: http://www.thehindu.com/todays-paper/tp-business/inflation-pressures-continue-to-remain-elevated/article5916896.ece
Exams Perspective:
- What is Work Price Index (WPI)?
- What is Inflation?
- What is Consumer Price Index (CPI) ?
- What is The Confederation of Indian Industry (CII)?
- What is agricultural produce market committee (APMC)?
- What is Foreign Direct Investment (FDI)?