Inflation To Remain Under Control Says FICCI

India Inc is unaffected by the rise in the headline inflation in December 2014. Industry body FICCI expects the inflation to remain under control in the coming days as well.

“The WPI inflation for December 2014 at 0.11% is only a marginal rise over last month. India can draw some comfort from the sharp drop in oil prices, which is reflected in the drop in fuel led inflation by 7.8%. Given the slow pace of global recovery and expectations of oil prices to remain at low levels going forward, inflation is expected to remain under control”, said Dr Jyotsna Suri, President- FICCI.

She added, “Further, the recovery noted in manufacturing in November 2014 comes over a low base and we are not yet sure about a firm turn around. To give a boost to the capex cycle, there is an urgent need for lowering of lending rates. Since the inflation is largely under control, we urge the RBI to ease the monetary policy stance. ”

The WPI or the headline inflation has been recorded at 0.11% in December 2014 from 0.0% in November 2014. According to the data released by the Ministry of Commerce and Industry, the marginal increase in WPI inflation can be attributed to the food inflation, which was recorded at 5.2%.