The retail inflation
may have been hovering at quite a reasonable level of 3.17 per cent for January on an all-India
basis, but there is no respite for people right in Delhi
along with a couple of other states, suffering the price rise at double the national average, with demonetisation
leaving its possible impact, an Assocham
analysis has noted.
"Against the national average of 3.17 per cent, Delhi
had to bear the inflation
rate, measured by the Consumer Price Index (CPI) at 6.32 percent, while it was 7.01 per cent for Jammu and Kashmir
(J&K) and 5.92 per cent for Himachal Pradesh," said the Assocham
analysis of the inflation
It also noted that in the rural belt of the national capital, the CPI inflation
was close to seven per cent at 6.85 percent. Similarly rural areas of Jammu and Kashmir
and Himachal Pradesh, which were quite high on the retail inflation
chart, witnessed quite a high rate of price rise in January on a year-on-year basis.
In J& K rural and far flung, the CPI inflation
was 9.08 percent and for the similar areas of Himachal Pradesh it was 6.17 percent, adds the Assocahm.
"The CPI inflation
for January on an all India
level is much lower at 3.17 percent than the one measured on the wholesale price index (WPI) at 5.25 percent. One of the plausible reasons could be the impact of demonetisation
on the supply chain," said Assocham
President Sandeep Jajodia.
But, what is even more surprising is the huge gap between retail inflation
and the national average.
"This was not expected at least in Delhi, especially when the phenomenon was not seen even in the neighbouring states of Haryana, UP and Punjab, thought it was slightly over four per cent in these states," the chamber said, adding the demonetization would have led to supply chain disruption more in the national capital than other states.
In any case, there are several supply chain issues which can be fixed only by an efficient transport that is a function of a huge investment needed in building quality roads, rail network, air cargo and a well integrated and modern cargo movement trade, said Jajodia.