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Food supply improving; Inflation to subside, states PHD Chamber chief
Tuesday, 14 January, 2020, 13 : 00 PM [IST]
Our Bureau, New Delhi
The escalated inflation in the Consumer Price Index (CPI), stoked by high food inflation, is majorly attributable to the sustained cold wave in the month of December and disruption in the supply of food items. It will come down very soon, as the supply of these items is improving. This was stated by Dr D K Aggarwal, president, PHD Chamber of Commerce and Industry, in a press statement issued here yesterday.

The CPI inflation grew at 7.4 per cent in December 2019 due to high inflation in vegetables (60.5 per cent).

“We do not expect that the rise in inflation rate is sustainable. The average inflation should remain at around 5.5 per cent for the current financial year,” said Dr Aggarwal.

“Going ahead, we look forward to the continuation of softer stance of monetary policy by the RBI (Reserve Bank of India) to spur investments and consumption demand in the coming times,” he added.
 
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