Inflation still above comfort levels

Apart from slowdown in economic growth, inflation continued to pose significant challenges. Although average wholesale price index declined to six per cent in 2013-14, vis-à-vis 8.9 per cent in 2011-12 and 7.4 per cent in 2012-13, it is still above comfort levels, says the survey. Moreover, WPI inflation in food articles that had averaged 12.2 per cent annually in five years ending 2013-14, was significantly higher than non-food inflation. Fortunately, the upward trend of inflation – that contributed to slowdown in growth, savings, investment and consumption appears to have subsided.

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