Prices to come down in six months: PM

May 11th, 2009 - 8:08 pm ICT by IANS  

Manmohan Singh Ludhiana, May 11 (IANS) Prices of consumer goods will fall in the next six months, Prime Minister Manmohan Singh said Monday.
Speaking to reporters, he also said that despite the global economic slowdown, India’s economy grew at 6.5 percent in 2008-9.

“I am sure CPI (consumer price index) inflation will moderate in five to six months,” Manmohan Singh said.

“The wholesale price index is already down to around 1 percent and there is a time lag for the consumer price inflation to also fall.”

The consumer price index reflects the average price of consumer goods and services for households.

According to him, several countries had gone into recession and posting negative growth due to the global economic difficulties.

“Even then India grew at 6.5 percent in the face of adverse circumstances,” the prime minister said. “This growth rate is the second highest in the world.”

On Thursday, India’s annual rate of inflation inched up to 0.7 percent for the week ended April 25 from 0.57 the previous week.

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