November 2, New Delhi: According to Saket Dalmia, president of the PHD Chamber of Commerce and Industry, wholesale price index (WPI) inflation has slowed to 10.7 percent in September 2022 from a high of 16.2 percent in June 2022.
The president of the industry body said on Wednesday that calibrated efforts by the government and the Reserve Bank of India (RBI) have had a significant impact on the rise in wholesale prices.
Though the RBI took an aggressive stance to combat inflation, raising the repo rate by 190 basis points (bps) in the last six months, from 4.4 percent in May to 5.9 percent in October, the GDP growth rate has also been maintained with a lesser deceleration when compared to many other economies, according to Dalmia.
Many economies were more aggressive in raising policy rates, with Canada increasing policy rates by 300 basis points (bps), followed by the US at 275 bps, Australia at 250 bps, the UK at 175 bps, South Africa at 225 bps, and the Eurozone at 200 bps, according to the industry body PHDCCI.
Calibrated steps by the government and RBI would be crucial to bring down inflation in the targeted trajectory along with maintaining economic growth at around 7 per cent in the current financial year 2022-23, said the industry body.
PHDCCI said deceleration in the WPI inflation will continue and it will have a significant impact on the price corrections in the retail inflation; CPI inflation is expected to soften below 6 per cent by December 2022.
