Question : Price Rise

(a) whether the rising prices/inflation have adversely impacted the investment and development;

(b) if so, the details thereof; and

(c) the reaction of the Government thereto?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI JAYANT SINHA)

(a) & (b) The level of investment and development depends on a number of factors like the return on investment, prevailing interest rates, the level of inflation, global financial conditions, etc. Inflation based on wholesale price index and consumer price index – new series has been declining in the recent years (Table 1).

Table 1: Inflation based on Wholesale Price Index and Consumer Price Index – New Series (in per cent)
Period 2012-13 2013-14 2014-15
WPI Inflation 7.4 6.0 2.0
CPI inflation 10.2 9.5 5.9
Source: WPI from Office of Economic Adviser, DIPP and CPI-NS from CSO.

(c) Does not arise.

Download PDF Files