New Delhi, February 14: Prime Minister Modi’s demonetisation drive to curb terrorism, black money and corruption led the inflation rates to go down. Notably, Retail inflation fell to 3.17 percent in January this year, mainly on account of declining prices of food items. This is the lowest level of retail inflation in at least over three years. This will directly benefit the consumers in many ways.
According to data from the Ministry of Statistics and Program Implementation on Monday, overall retail inflation in food dropped to 0.53 percent in January, from 1.37 percent in December. Inflation in vegetables continued in the negative zone, at minus 15.62 per cent in January this year. Retail inflation in pulses and products was minus 6.62 percent during the month.
Retail inflation, measured in terms of the Consumer Price Index, had stood at 3.41 per cent in December last year, and 5.69 percent in January last year. Whereas, the industry group ‘Radio, TV and communication equipment & apparatus’ has shown the highest positive growth of 32.2% followed by 23.2% in ‘Electrical machinery & apparatus n.e.c.’ as well as in ‘Motor vehicles, trailers and semi-trailers’.
On the other hand, ‘Furniture; manufacturing n.e.c.’ has shown the highest negative growth of -16.5% followed by -5.2% in ‘Office, accounting and computing machinery’ and -3.2% in ‘Tobacco products’.
Some important items showing high positive growth during the current month over the same month in previous year include ‘Cable, Rubber Insulated’ (185%), ‘Tractors (complete)’ (95%), ‘Telephone instruments including mobile phone and accessories’ (42.8%), ‘Passenger cars’ (29.5%), ‘Aviation Turbine Fuel’ (28.3%), ‘Plastic Machinery including Moulding Machinery’ (24.1%) and ‘Sugar’ (21.2%).
Some important items that have registered high negative growth include ‘H R Sheets’ [-49.7%), ‘Kerosene’ [-35.7%], 'Molasses’ [-26.2%], ‘Gems and Jewellery’ [-25.4%], ‘Polypropylene (including co-polymer)' [-23.1%] and ‘Sugar Machinery’ [-20.4%].
After the demonetisation policy was announced by the government, PM Modi and Finance Minister Arun Jaitley repeatedly said that there will be some consequences of it and inflation rates will definitely fall.