Commenting on the inflation figures for the month of September 2012 which stood at 7.81%, Mr. K. Shiva Shanmugam, President, FKCCI said that FKCCI in its earlier press release had already predicted this as an impact of the hike in diesel price during the same month. Fuel and power inflation surpassed double digit level and stood at 11.88% compared to 8.32% in August 2012. The President was pleased to note that food inflation has declined further to 7.86% in September from 9.14% in August 2012. The President however is of the opinion that in view of the overall inflation rate declining from that during the same period last year (10%), a cut in RBI’s policy rates is expected during its second quarter monetary policy review on 30th October 2012.
The index of industrial production for the month of August 2012 was estimated at 2.7%. Mr. Shanmugam felt that although there has been an improvement in the IIP, the growth rate is still not satisfactory. While mining and manufacturing registered positive growth rates in August (which were both negative during July), there has been a drastic fall in the performance of electricity, which he feels, the Government should address on a priority basis.
