ALSO READRBI policy is anti-growth, must cut rates to balance inflation: Ficci chief PM Narendra Modi bats for small businesses at Ficci AGM: Key takeaways WPI inflation eases to 3.58% in December from 3.93% in November 2017 GDP growth to rise in Q2, Q3 as demonetisation, GST impact fades: Ficci Banks' bad loans a big scam of UPA regime, says Modi at Ficci AGM
"As the inflation numbers are being driven largely on account of supply-side factors, we urge the Reserve Bank of India to calibrate its monetary policy stance giving equal weightage to growth consideration.
Inflation based on wholesale prices eased to 3.58 per cent in December 2017 as prices of food articles declined even as fuel cost witnessed a surge. The WPI inflation was 3.93 per cent in November 2017 and 2.10 per cent in December 2016.
"The policymakers need to take care of the continuous rise in petrol and high speed diesel prices due to rise in global crude oil prices which may have an impact on import bills and subsequent impact on exchange rates," said Assocham Secretary General D S Rawat.
"We also look forward to the Union Budget to provide details on more specific measures towards strengthening of agriculture supply chain for effective management of food prices. At the same time, we hope to see inclusion of petrol and diesel under GST in coming months, which should also help in lowering the pressures of fuel inflation," Shah said.
Data released last week showed that retail inflation breached the RBI's comfort level to touch 5.21 per cent in December on rise in prices of food items, especially vegetables.
The RBI takes into account retail inflation while deciding on key policy rates. In its last policy review in December, RBI had kept key repo rate unchanged at 6 per cent and reverse repo rate at 5.75 per cent.