High food, fuel rates key contributors for decline in June Inflation: CII

NEW DELHI: The Confederation of Indian Industry (CII) has said that strong food and fuel rates have been the key contributors for the decline in June inflation. The industry body has displayed inclination for policy initiatives to relax the supply side bottlenecks in agriculture with the delisting of perishables from the APMC Act. This statement has come from Chandrajit Banerjee, Director General, CII on June 2012 Inflation data.

This act will help the farmers to directly sell their produce in the market and also open up foreign direct investment (FDI) in retail sector. Reports suggest that Inflation slipped to 7.25% during June as the prices of manufactured items relaxed a little, although vegetables, wheat and pulses became expensive.

Inflation is measured by the Wholesale Price Index (WPI) and it was at 7.55% during May. In June, the net food inflation jumped to 10.81% during June as compared to 10.74% during May.

CII has said that there is a urgent requirement to address the problem of fuel inflation.