Fall in retail inflation offers big relief: Assocham

Posted By: Super
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Fall in retail inflation offers big relief: Assocham
    Expressing relief at retail inflation falling to a 30-month low in June, industry body Assocham has suggested a slew of steps like scrapping of APMC Act and encouraging private sector investments in back-end infrastructure to bring down prices further.

    Retail inflation fell to 30-month low of 7.31 per cent mainly on account of lower price rise of food items including vegetables, cereals and meat.

    "Indications that growth in the retail prices is moderating offers a big relief to the nation and its policy makers," Assocham Secretary General D S Rawat said.

    "Existence of numerous tiers of agents in the consumer product distribution results in higher retail inflation. This leads to wage-price spiral, rising nominal wages, supply constraints especially in infrastructure and demand-supply imbalances in various regions which push the retail prices higher," he added.

    The retail inflation, measured on consumer price index (CPI), was 8.28 per cent in May. It was lowest at 7.65 per cent in January 2012 when government started releasing the data in percentage terms.

    The industry chamber suggested that the government needs to come out with a definite time-bound roadmap for improving the management of supply of consumer products

    This includes measures like scrapping of the Agriculture Produce Marketing Committee (APMC) Act allowing farmers to sell their produce freely; slashing taxes and commissions on primary products related to agriculture, forestry and fishing at both Centre and States; encouraging private sector to invest in back-end to streamline value chains; and utilising rural development schemes to create productive infrastructure.

    During the month, the vegetable prices were down to 8.73 per cent as against 15.27 per cent in May. Prices of cereals and its products came cheaper with rate of price rise at 7.6 per cent as against 8.81 per cent a month ago.

    Likewise, the rate of price rise for egg, fish and meat remained at 8.27 per cent in June, lower than 10.11 per cent in May this year.

    The rate of price rise in milk and milk products also remained at 11.06 per cent, slightly lower than 11.28 per cent in May, showed the data.

    PTI

    Story first published: Tuesday, July 15, 2014, 8:40 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more