FICCI blames inflation on food prices | Latest News India - Hindustan Times
close_game
close_game

FICCI blames inflation on food prices

None | ByPress Trust of India, New Delhi
Feb 11, 2007 02:02 PM IST

FICCI says that the current rise in inflation is the result of rising food prices and is not industrial driven.

Apex chamber FICCI has said that the current rise in inflation is the result of rising food prices and not an industrial driven one as India Inc is continuing to absorb increasing input costs to maintain the current selling prices rates.

HT Image
HT Image

According to FICCI's Q3 Business Confidence Survey, the outlook on investments has taken a hit owing to the spiralling capital goods prices coupled with the rising cost of credit - the Investment Index has plunged from 50 in the previous quarter to 39 this time.

Hindustan Times - your fastest source for breaking news! Read now.

Lower investments in the near future may have a long-term impact of slowing down the economy.

The wholesale price-based inflation for the week ended January 27 jumped to two year high of 6.58 per cent driven by the high prices of food articles like vegetables, fish and milk.

The survey drew responses from 320 companies had turnover ranging from Rs 2 crore to Rs 89,000 crore. The broad sectors included pharmaceuticals, textiles, telecom, food and beverages among others.

Lower investments in the near future may have a long-term impact of slowing down the economy, it added. 

The survey indicates that the government's move to undertake reduction in customs duty on items used as industrial inputs and as capital goods is on the right track.

The findings indicate the urgent need for corrective measures from the government to ease the supply rigidities in the economy so that the subdued apprehension voiced now does not surface as a pronounced setback in the coming quarters, the survey said.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Arvind Kejriwal News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On