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Journalism of Courage
Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Thursday that inflation would go up and hover between 4 and 5 per cent by the end of this year.
“We are in favour of modest inflation; we (will) end the year,as we have been saying,with inflation between four and five per cent,” Ahluwalia said.
When asked about inflation going up marginally to (-)1.21 per cent for the week ended July 4 compared to (-)1.55 in the previous week,Ahluwalia said,”I have been saying consistently that temporarily inflation will be negative but it will go back to a positive level. Inflation should be small but positive … negative (inflation) … falling prices are bad for the economy.”
“(Very high individual prices coming down) is ok,but for the price level as a whole (it) is not good. Inflation between four and five per cent is normal,” he added.
About when inflation is expected to turn positive,he said,”Three weeks ago I said it would remain negative for several weeks,but I am not predicting when it is going to be positive.”
