“The record-low inflation offers a strong foundation for India’s next phase of growth. It is a moment of opportunity to revitalize private investment, stimulate consumption, and accelerate job creation,” said Mr. Rajeev Juneja, President, PHDCCI in a press statement. Food inflation (Provisional) registered a –2.28 % year-on-year decline, extending its downward trend for the fourth consecutive month. Among categories, the sharpest declines were driven by lower inflation in vegetables, oil & fats, fruits, pulses, cereals, eggs, as well as moderated increases in energy and fuel prices. Better arrivals of vegetables, cereals, and pulses at mandis led to a correction in retail prices, he said.

He added, “The moderation in food and fuel prices has provided much-needed relief to households and improved purchasing power. Going forward, we urge the government to leverage this price stability to enhance credit availability, ease of doing business, and export competitiveness, especially for MSMEs and labour-intensive sectors.” This phase of low inflation should be complemented by accelerated implementation of infrastructure and logistics projects to lower input costs, further support for agriculture supply chains to prevent food price spikes, and continued focus on technology-driven productivity gains in manufacturing and services, he added.

We anticipate that India’s inflation will remain within a comfortable range over the next two quarters, supported by adequate food supplies, moderate energy costs, and prudent monetary management by the Reserve Bank of India said Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI.