India wholesale price inflation rate fall to a five year low of only 2.38% on back of decline in price of vegetables, milk, eggs, meat, fish, sugar, edible oils, beverages, cement.
Retail inflation is also at a low of 6.46%.
Food inflation falls to a two and a half years low of 3.52%.
RBI which has long declared its unending fight against the rising inflation despite repeated request from various corners of the industries to cut the high rates which are stifling investment and borrowings for much need infrastructure development in the country, should now have not much reason not to take another look at cutting the high interest rates to spur economic growth.
It is time the RBI work in tandem with the Government to spur economic growth, such high interest rates are not sustainable. It is advisable not to oppose for the sake of show of independence.
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