<p>As wholesale inflation fell to a five-year low, Finance Minister Arun Jaitley today said that decline in global crude prices should further help in improving the price situation.</p>.<p>"We believe that softening of prices is in our interest. With crude prices down, this trend of lower food prices will continue," he told reporters here.<br /><br />The Minister, however, cautioned that it has to be seen how the oil prices augur going forward. "We should not be overtly optimistic at this time," Jaitley added.</p>.<p><br />Global crude prices have dropped to four-year lows of USD 77 a barrel.<br /><br />Wholesale price based inflation dropped to 5-year low of 1.77 per cent in October, from 2.38 per cent in September, driven by decline in rate of price rise in food and fuel items.<br /><br />Commenting on the industrial output growth which was at a three-month high of 2.5 per cent in September, Jaitley said he would have been happier had the growth been a little higher.<br /><br />"2.5 per cent (IIP growth) is not enough for me to smile. Targets are higher and it will take its time. Steps that we are taking will take a little time before it shows it's impact," the Minister said.<br /><br />Factory output, measured in terms of Index of Industrial Production (IIP), showed an improvement mainly because of an uptick in mining and manufacturing production and larger offtake of capital goods.</p>
<p>As wholesale inflation fell to a five-year low, Finance Minister Arun Jaitley today said that decline in global crude prices should further help in improving the price situation.</p>.<p>"We believe that softening of prices is in our interest. With crude prices down, this trend of lower food prices will continue," he told reporters here.<br /><br />The Minister, however, cautioned that it has to be seen how the oil prices augur going forward. "We should not be overtly optimistic at this time," Jaitley added.</p>.<p><br />Global crude prices have dropped to four-year lows of USD 77 a barrel.<br /><br />Wholesale price based inflation dropped to 5-year low of 1.77 per cent in October, from 2.38 per cent in September, driven by decline in rate of price rise in food and fuel items.<br /><br />Commenting on the industrial output growth which was at a three-month high of 2.5 per cent in September, Jaitley said he would have been happier had the growth been a little higher.<br /><br />"2.5 per cent (IIP growth) is not enough for me to smile. Targets are higher and it will take its time. Steps that we are taking will take a little time before it shows it's impact," the Minister said.<br /><br />Factory output, measured in terms of Index of Industrial Production (IIP), showed an improvement mainly because of an uptick in mining and manufacturing production and larger offtake of capital goods.</p>