WPI INFLATION DATA

Commenting on the latest inflation numbers, FICCI said that the WPI based inflation rate inched up to 0.3% in April 2016, after remaining in the negative zone for 17 consecutive months. While some price pressure is noted in case of select food items, we don’t foresee any significant change in the near term in the inflation trajectory. While the latest monsoon forecast shows a delay by about a week, we hope that the meteorological department’s overall prediction will hold and would provide reprieve in the months ahead.                                                              Dr A. Didar Singh

IIP DATA

It is evident from the data now that the weak consumer and investment demand has started impacting the growth of manufacturing more than exports. The growth in manufacturing may take more time to pick up. It’s therefore important that the Government holistically addresses the issues related to manufacturing by a high level institutional mechanism involving all departments and States, stated FICCI.

The growth in manufacturing for the last year is disappointing and emphasizes the need for more deep rooted reforms for the sector to make its growth sustainable in the long run.