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Demonetisation possible reason for high inflation in Delhi, J&K: Assocham

CPI inflation in Delhi was 6.32%; it was 7% in Jammu and Kashmir

ANI  |  New Delhi 

Retail Inflation

The retail may have been hovering at quite a reasonable level of 3.17 per cent for January on an all-basis, but there is no respite for people right in along with a couple of other states, suffering the price rise at double the national average, with leaving its possible impact, an analysis has noted.

"Against the national average of 3.17 per cent, had to bear the rate, measured by the Consumer Price Index (CPI) at 6.32 percent, while it was 7.01 per cent for (J&K) and 5.92 per cent for Himachal Pradesh," said the analysis of the data.

It also noted that in the rural belt of the national capital, the inflation was close to seven per cent at 6.85 percent. Similarly rural areas of 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 inflation was 9.08 percent and for the similar areas of Himachal Pradesh it was 6.17 percent, adds the Assocahm.

"The inflation for January on an all 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 on the supply chain," said President Sandeep Jajodia.

But, what is even more surprising is the huge gap between retail inflation in 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.

First Published: Thu, February 16 2017. 14:48 IST