Hotline: 1800 102 2007
X
Search Business Opportunities
Research 2015-02-21

Food inflation still a concern: D&B

Wholesale prices fell the most in five-and-a-half years in January as decline in oil and some food items resulted in a negative inflation or deflation of 0.39 per cent for the month.

By Deputy Features Editor
Food inflation still a concern: D&B

Notwithstanding deflation in wholesale prices, food inflation remains ‘a concern’ and could rise further, says a report by Dun & Bradstreet, reported PTI.

According to the global research firm, comfort from the decline in fuel inflation may soon start to abate following the rise in domestic petrol and diesel prices.

“The already elevated food prices could rise further in the event of unfavourable rabi harvest, thereby exerting pressure on overall inflation,” the report said.

It expects the WPI inflation to be in the range of (-) 0.4 per cent to (-) 0.2 per cent in February 2015.

Wholesale prices fell the most in five-and-a-half years in January as decline in oil and some food items resulted in a negative inflation or deflation of 0.39 per cent for the month.

According to D&B, WPI Inflation is likely to remain in the negative zone led by weak commodity prices, subdued demand and continued fall in the global crude oil prices.

“The weak global economy coupled with deflation witnessed in major economies is expected to have some impact on the performance of the domestic economy, the extent of which though cannot be deciphered so easily,” said Arun Singh, Senior Economist, D&B India.

It was the second time in three months that the wholesale price index entered the negative territory. The government had also revised downwards the inflation number for November to minus 0.17 per cent, from zero earlier.

The last time the inflation had touched this low level was in June 2009 when it was at (-) 0.4 per cent.

RBI Governor Raghuram Rajan on January 15 cut interest rates ahead of the scheduled monetary policy review. It is expected that he might announce another cut after the Budget in the wake of significant improvement in the inflation situation. The next review is due on April 7.

Comment
Related opportunities
  • About Us: Euro India Fresh Foods Ltd is a ISO 22000:2005..
    Locations looking for expansion Gujarat
    Establishment year 2009
    Franchising Launch Date 2018
    Investment size Rs. 10000 - 50 K
    Space required 400
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Ahmedabad Gujarat
  • Bars, Pubs & Lounge
    An enthusiastic bunch of astronomers, space cadets and chefs came..
    Locations looking for expansion Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 2 Cr. - 5 Cr
    Space required 8000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Others Health Care & Fitness
    About Body Building India Body Building India is a well-known name..
    Locations looking for expansion New Delhi
    Establishment year 2015
    Franchising Launch Date 2016
    Investment size Rs. 10lac - 20lac
    Space required 250 - Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater New Delhi New Delhi
  • E-Commerce & Related
    About Us: Incepted in 1955 by Shri. Madhavrao Ashtekar, who hailed..
    Locations looking for expansion Delhi
    Establishment year 1955
    Franchising Launch Date 2018
    Investment size Rs. 2 Cr. - 5 Cr
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts