The apex chambers of commerce on Friday, while expressing concern on inflation, expressed optimism that it will be contained in next few months.
According to Assocham, inflation would not exceed the double-digit level and henceforth will start coming down. ?Oil prices would subside and thereby would have impact on prices of essential commodities that would result in scaling down the inflation?, said Assocham president, Sajjan Jindal. He added that inflation is not only a concern for the government, it is equally a concern for India Inc, therefore, at times, patience is required to bear with the government as many things seem to have gone beyond its hands.
Terming high inflation as a serious matter, CII has put offered to work along with the government in controlling inflation and ensuring that the growth momentum of the economy is not seriously damaged. At 11.05% growth in WPI for the week ending June 7, 2008, inflation is reaching the concern zone, said CII. The current level of inflation, which is a reflection of global prices, reduces the space for fiscal and monetary policy maneuverability, without seriously affecting growth.
Ficci, however, said that prices should stabilise provided there is no further steep increase in the international crude prices and thereafter in the price of petrol and diesel. The silver lining is that wheat production in the country touched a high of 78 million tonnes in 2007-08.
With the met department projecting a better than normal monsoon in the current year, prices of agricultural commodities should see a decline in a couple of months. Ficci also noted that with foreign investment inflows into the country showing signs of moderation, money supply increase would also be checked and this would contribute towards paring inflation.