SME Times News Bureau | 13 Mar, 2014
The consumer price index-based inflation, or retail
inflation, for February slowed to 8.10 percent as compared to 8.79 percent in
the previous month, government data showed Wednesday.
The corresponding provisional inflation rates for rural and urban areas for
February 2014 are 8.51 percent and 7.55 percent respectively.
Inflation rates for rural and urban areas for January 2014 were 9.35 percent
and 8.09 percent respectively, the data stated.
Food inflation for February 2014 stood at 8.57 percent compared to 9.9 percent
in January 2014.
Reacting to the fall in retail inflation for February, industry bodies urged a
lowering of lending rates to stimulate industrial activity.
"Since WPI (wholesale) inflation and CPI (retail) inflation are in the
softening trend and subsiding month after month, RBI at this juncture should
come forward to reduce the policy rates and help the industrial activity to
recover at a faster pace," Sharad Jaipuria, President, PHD Chamber of
Commerce said in a statement.
"The RBI needs to take a constructive view while undertaking the mid-quarter
review of its credit policy later in the week. The weak supply response arising
out of difficult business conditions needs the attention of policy makers," industry
chamber Assocham said in a statement.