<p>“We are in favour of modest inflation; we (will) end the year, as we have been saying, with inflation between four and five per cent,” Ahluwalia said.<br /><br />Asked about inflation going up marginally to (-)1.21 per cent for the week ended July 4 compared to (-)1.55 in the previous week, Ahluwalia said, “I have been saying consistently that temporarily inflation will be negative but it will go back to a positive level. Inflation should be small but positive ... negative (inflation) ... falling prices are bad for the economy.”<br /><br />Turning positive<br /><br />“(Very high individual prices coming down) is ok, but for the price level as a whole (it) is not good. Inflation between four and five per cent is normal,” he added. <br /><br />About when inflation is expected to turn positive, he said, “Three weeks ago I said it would remain negative for several weeks, but I am not predicting when it is going to be positive.” <br /><br />Meanwhile, driven by higher prices of fuel items like petrol and diesel, inflation rose marginally to (-)1.21 per cent for the week ended July 4 against (-)1.55 per cent in the previous week.<br /><br />At the same time, prices of food articles like cereals, pulses, spices, and fruit and vegetables also remained firm. The wholesale price index during the corresponding week a year ago was as high as 12.19 per cent.<br /><br />During the week, food items like coffee turned expensive 15 per cent, maize 2 per cent, and condiments and spices by 1 per cent. Besides, prices of coffee powder rose 7 per cent, and ghee and sugar one per cent each.<br /><br />Inflation for the week ended May 9 was revised upwards to 1.56 per cent from 0.61 per cent as estimated provisionally. <br /></p>
<p>“We are in favour of modest inflation; we (will) end the year, as we have been saying, with inflation between four and five per cent,” Ahluwalia said.<br /><br />Asked about inflation going up marginally to (-)1.21 per cent for the week ended July 4 compared to (-)1.55 in the previous week, Ahluwalia said, “I have been saying consistently that temporarily inflation will be negative but it will go back to a positive level. Inflation should be small but positive ... negative (inflation) ... falling prices are bad for the economy.”<br /><br />Turning positive<br /><br />“(Very high individual prices coming down) is ok, but for the price level as a whole (it) is not good. Inflation between four and five per cent is normal,” he added. <br /><br />About when inflation is expected to turn positive, he said, “Three weeks ago I said it would remain negative for several weeks, but I am not predicting when it is going to be positive.” <br /><br />Meanwhile, driven by higher prices of fuel items like petrol and diesel, inflation rose marginally to (-)1.21 per cent for the week ended July 4 against (-)1.55 per cent in the previous week.<br /><br />At the same time, prices of food articles like cereals, pulses, spices, and fruit and vegetables also remained firm. The wholesale price index during the corresponding week a year ago was as high as 12.19 per cent.<br /><br />During the week, food items like coffee turned expensive 15 per cent, maize 2 per cent, and condiments and spices by 1 per cent. Besides, prices of coffee powder rose 7 per cent, and ghee and sugar one per cent each.<br /><br />Inflation for the week ended May 9 was revised upwards to 1.56 per cent from 0.61 per cent as estimated provisionally. <br /></p>
