ALSO READHigher crude oil prices will worsen fiscal balance: Nomura Sensex, bonds, rupee fall; crude oil gains raise inflation fears SBI's economic report on oil price hike, impact on CAD released India's crude oil refinery output up 5.6% in May 2017 India buys first ever U.S. crude oil, to step up purchases
India Inc. on Tuesday said the rise in inflation numbers for October is in line with the industrys expectations owing to factors like marginal rise in demand together with increase in prices of crude oil and other commodities globally.
However, the policymakers must take corrective action to address challenges like rising interest rates, twin balance sheet and limited investment capacity besides others being faced by the industry, India Inc. maintained.
Assocham Secretary General D.S. Rawat said the rise in wholesale price index (WPI) numbers may have corresponding upward impact on consumer price index (CPI) which may limit the possibility of rate cut by the Reserve Bank of India (RBI), which has already shown concern for increase in inflation in the future.
"Some abatement in prices of pulses, potato and sugar through policy measures is very much appreciated. Similarly, the policymakers should check and address prices of products, including paddy, that are hovering at higher levels and are also of national importance," said Rawat.
He added that continuous increase in petrol prices and that of high speed diesel due to rise in global crude oil prices must be taken care of by the policymakers since it may have an impact on the import bills and subsequent impact on exchange rates.
According to data from the Ministry of Commerce and Industry released on Tuesday, the WPI with revised base year of 2011-12 went up in October to 3.59 per cent from 2.60 per cent in September.
The CPI inflation for October rose to 3.58 per cent from 3.28 per cent reported for September, data released on Monday revealed.
Both wholesale and retail prices edged up in the month of October led by firming up of food prices, especially in the vegetables segment, said FICCI President Pankaj Patel.
"However, this is due to adverse weather conditions and the situation should ease out in the coming months," Patel said.
"Various measures undertaken by the government to promote agriculture and agro-processing are a step in the right direction... Furthermore, agriculture market reforms with regard to APMC (Agricultural Produce Market Committee) Act and e-NAM's (National Agriculture Market) should continue to be encouraged."
PHD Chamber of Commerce and Industry President Anil Khaitan, in a statement, said: "Inflation is not a major worry at this juncture as the government is making lots of efforts for the smooth supply of food articles."
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)