Kolkata, Oct 9 (Inditop.com) India’s inflation rate is expected to rise beyond predicted levels by the end of the year, according to Pronab Sen, secretary in the ministry of statistics and programme implementation.
“By December, I expect inflation as measured by WPI (wholesale price index) to have crossed RBI’s (Reserve Bank of India) comfort zone,” Sen said here Friday.
“At the same time, you would see the IIP (index of industrial production) going up possibly to double digit based on the base effect of last year,” he said during an interactive session organised by the Bharat Chamber of Commerce.
The government should make sure that “growth impetus does not get jeopardized”.
He said 2008 was an “extraordinary year” not only because the economy was hit by slowdown, but also because inflation was high.
“The repercussion of 2008 will stay for the coming 3-4 years,” the statistician said.
“Had there been no drought, Indian GDP (gross domestic product) would have grown by 7 percent,” he said, adding that the impact of agricultural loss due to drought will range between minus 2.5 percent to minus 6.5 percent.
The department of industrial policy, which calculates the WPI, has urged the government to calculate the WPI on monthly basis instead of the present system of weekly calculation to match the Consumer Price Index (CPI).
