December 03, 2008

Disruption in supply chain causing higher inflation – ASSOCHAM

Reacting on latest wholesale inflation rate of 7.41%, Mr Venugopal N Dhoot president of ASSOCHAM predicted that the way prices of essential commodities including food grains are shooting up, the inflation is expected to touch an alarming figure.

Mr Dhoot said that it is true that government in the recent past took several steps for containment of prices, the result of which would come down in next few months and the rising inflation will fall back to 4%. He said that inflation has become currently a global problem and if the rains are not adequate, the situation may further worsen.

However, he said that the interest rates should be brought down to help Indian Inc have liquidity and the government should ensure that supplies of essential commodities should be maintained as the current inflation has risen mainly because there are disruptions in supply demand chain.