Despite the compulsions to curb inflation, it is important that the Reserve Bank of India reverts to easing monetary control to revive demand in view of the steep drop in industrial production, the Confederation of Indian Industry (CII) said Thursday.
“CII fully appreciates RBI’s compulsions to keep inflation under check. However, it is also important that the RBI takes cognizance of the steep slide of industrial production and reverts to the accommodative monetary policy to revive demand,” Chandrajit Banerjee, CII director general, said here recting to retail inflation data for November released Thursday.
The consumer price-based inflation (CPI) for November rose to 11.24 percent as compared to 10.17 percent in the previous month. The corresponding provisional inflation rates for rural and urban areas for November are 11.74 percent and 10.53 percent, respectively
“Prices at the retail level, especially of items of common-man like cereals, vegetables have shown a big rise creating a double whammy for the economy,” said D.S. Rawat, secretary general of industry chamber Assocham.
“A very disappointing macro picture is evident at a time when the political economy of the country is going fast into an election mode and there is hardly any political consensus on taking the reforms measures,” he added.