Inflation between minus 2% and 2% next fiscal: Virmani
Inflation is expected to remain in a range of two per cent above and below the zero level over the next fiscal, Chief Economic Adviser to the Finance Ministry Arvind Virmani said today.
By PTI |
NEW DELHI: Inflation is expected to remain in a range of two per cent above and below the zero level over the next fiscal, Chief Economic Adviser to the Finance Ministry Arvind Virmani said today.
"If one looks over a year ... March end to next year ... I would expect a zero, plus-minus 2 per cent, inflation," Virmani said at a CII convention here.
The rate of price rise, as measured by the wholesale price index, has fallen to 0.27 per cent, its lowest level in more than three decades.
Economists have warned that inflation could soon fall below the zero level.
Ruling out any possibility of sustained deflation in the economy, Virmani, however, said that the consumer price deflator used for GDP is more indicative of inflation and that is not expected to be anywhere near zero.
"We don't have the aggregate CPI (consumer price index). We pay attention to the WPI (wholesale price index). Globally they look at the CPI. To conclude on the WPI basis is not good," he said.
He said that consumer price inflation, in which food items have a greater weight, is still in double digits and would come down rather slowly.
On this issue, Commerce Secretary G K Pillai later said, "(The) lag between (the) CPI and WPI is because food prices are still high. They are not coming down because minimum support prices have been raised over the last 3-4 years.
"If one looks over a year ... March end to next year ... I would expect a zero, plus-minus 2 per cent, inflation," Virmani said at a CII convention here.
The rate of price rise, as measured by the wholesale price index, has fallen to 0.27 per cent, its lowest level in more than three decades.
Economists have warned that inflation could soon fall below the zero level.
Ruling out any possibility of sustained deflation in the economy, Virmani, however, said that the consumer price deflator used for GDP is more indicative of inflation and that is not expected to be anywhere near zero.
"We don't have the aggregate CPI (consumer price index). We pay attention to the WPI (wholesale price index). Globally they look at the CPI. To conclude on the WPI basis is not good," he said.
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He said that consumer price inflation, in which food items have a greater weight, is still in double digits and would come down rather slowly.
On this issue, Commerce Secretary G K Pillai later said, "(The) lag between (the) CPI and WPI is because food prices are still high. They are not coming down because minimum support prices have been raised over the last 3-4 years.
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