Cheering the moderation in inflation for the month of June, India Inc has stated that decline in inflation is the outcome of recent measures like crackdown on hoarders taken by the new government. WPI inflation eased to four-month low at 5.43% for the month of June as compared to 6.01% in the previous month and 5.16% during the corresponding month of the previous year. The decline in headline inflation was mainly on account of decline in prices of fuels, food items and vegetables.
CII Director General Chandrajit Banerjee has asserted that moderation in inflation together with the rebound in industrial production is showing a sign of economic recovery. He added that measures announced in the budget to arrest inflation should be implemented soon, which would address the supply side bottlenecks and pave the way for stable inflation regime for food products.
FICCI President Sidharth Birla appreciated the recent government’s measures to check hoarding and facilitating the supply chain in various essential commodities and asserted that budget announcements regarding establishment of a Price Stabilisation Fund and a commitment by Centre to work closely with states would go a long way to facilitate farm produce to deliver at consumers' doorsteps. However, India Inc expressed concerns over the increase in prices of key food products such as fruits, potato, rice and milk. The inflation in potato and onion soared by 42.51% and 10.70% in June respectively in the wholesale market.