Inflation still a concern: Chief Statistician

Even as food inflation fell to below 1% in mid-December, the country's Chief Statistician TCA Anant today said the overall price rise still remains a concern, and the impact of economic slowdown may be gradually felt in employment numbers.

"...There is still a concern [on inflation], a concern which has also been expressed by the Finance Minister," Anant told reporters here at release event of provisional results of the Annual Survey of Industries (ASI) 2009-10.

He refused, however, to make any projections regarding the inflation numbers for the year-end.

His comments came a day after food inflation plunged to 0.42%, lowest since April 2006.

However, overall inflation, which also factors in manufactured products, fuel and non-food primary items, has remained near double digit since December 2010. It was 9.11% in November.

Yesterday, Finance Minister Pranab Mukherjee had said that the moderation in the rate of price rise of food items will help bring down the headline inflation to around 6% by March 2012.

Anant also said that the slowdown in economic growth and industrial production may also impact the job situation in the country.

"The impact of slowdown is not immediately felt in the employment numbers but the process is gradual as most the jobs are in sector like consumer goods. If the slowdown continues this year, it will have a bigger impact on employment," he said.

Anant, however, termed the country's growth as "still robust" and said that in the first half (April-September) the economy has expanded by 7.3%.

"But there are concerns on both the global and domestic fronts," he added.

Economic growth in the second quarter of this fiscal was 6.9%, lowest in over two years. Industrial production, meanwhile, entered the negative zone and contracted by 5.1% in October.

"The government has taken a number of steps including framing of new manufacturing policy and such measures should show results. Besides, we will have be entering the 12th Five-Year Plan and during the initial phase of any Plan the growth is good," Anant said.

On FIIs, the Chief Statistician said that the affect of the recent huge withdrawals by them would take some time to reflect in the economic data.

"FIIs withdrawal is at the portfolio level. For it to show impact at the company's level will take time, maybe a year or two," Anant said.