New Delhi, Mar 13: C. Rangarajan, the Chairman of Prime Minister Dr. Manmohan Singh's Economic Advisory Council, has said the fiscal stimulus steps in the Budget for 2008-09 could boost industrial output in the months ahead, but rising global crude oil prices may pressure inflation.
"Continued decline in the performance of the of industrial production is a matter of concern, but we need to analyse the data more clearly. Perhaps, the durable consumption goods could start picking up because there is always a cyclical peak or cyclical behaviour, so that is one has to look at," Rangarajan said.
Data released on Wednesday showed output in January grew 5.3 per cent from a year earlier, well below both economists' forecast in a Reuter's poll of 8.0 per cent and the previous month's upwardly revised annual rate of 7.7 per cent.
The most noticeable pressure point in January was durable consumer goods, such as large household items, which contracted by an annual 3.1 per cent.