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Ficci, Assocham urge RBI to cut rates after WPI cools down to 3.58%

The RBI takes into account retail inflation while deciding on key policy rates

Press Trust of India  |  New Delhi 

Tomatoes: The new enemy in fight against inflation

As wholesale eased to 3.58 per cent in December, today urged the Reserve to reduce key policy rates to augment and boost

"As the numbers are being driven largely on account of supply-side factors, we urge the Reserve of India to calibrate its stance giving equal weightage to growth consideration.

"Lowering of the repo rate in the upcoming is critical to boost and build the growth momentum at this juncture," said.

based on wholesale prices eased to 3.58 per cent in December 2017 as prices of declined even as fuel cost witnessed a surge. The inflation was 3.93 per cent in November 2017 and 2.10 per cent in December 2016.

said inflation may remain high till April-June 2018, even as successive hardening of core inflation in last five months can be seen as a cause for concern.

"The policymakers need to take care of the continuous rise in petrol and high speed diesel prices due to rise in global which may have an impact on import bills and subsequent impact on exchange rates," said Secretary General D S Rawat.

As per government data released today, inflation on slowed to 4.72 per cent in December, from 6.06 per cent in November 2017.

"We also look to provide details on more specific measures towards strengthening of for effective management of 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 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 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.

First Published: Mon, January 15 2018. 14:59 IST