Inflation to subside soon
PHD Chamber of Commerce and Industry President Dr D K Aggarwal expects RBI policy to spur investments and consumption demand in the coming times.
“Going ahead, we look forward to the continuation of softer stance of monetary policy by RBI to spur investments and consumption demand in the coming times,” said Dr D K Aggarwal said in comments on the high food inflation.
Escalation in CPI inflation stoked by high food inflation is majorly because of sustained cold wave in the month of December and disruption in the supply of food items, he pointed out.
“Inflation will come down very soon as supply of these items is improving significantly,” added Dr Aggarwal in a statement on 13 Jan 2020.
The CPI inflation grew at 7.4% in December 2019 due to high inflation in vegetables (60.5%).
“We don’t expect that the rise in inflation rate is sustainable; the average inflation should remain at around 5.5% for the current financial year,” said Dr Aggarwal. fiinews.com