Montek Ahluwalia predicts easing of food price inflation by next month

New Delhi, Jan 4 (ANI): Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Monday that the current food inflation would be eased by the end of next month.

Ahluwalia said, "The dominant part of inflation that is a concern is food price inflation. I don't believe that is the result of excess liquidity though clearly when inflation begins to go up, I mean, one of the instruments that people use is the monetary instrument. So I don't want to speculate, I think to come to a conclusion because we have a problem with one set of prices, what is the ideal way of responding, that is a complex issue."

"I think in our case, a lot of it has to do with expectations, managing the supply side and better use of existing stock. Plus, I think that with fears of the negative effect of the drought being reduced there will be a softening in the food price inflation in the next month," he added.

The seminar, titled 'Global Economic Crisis: Back to Keynes', was jointly organised by Federation of Indian Chambers of Commerce and Industry (FICCI) and Shri Ram Centre for Industrial Relations and Human Resources.

Lord Meghnad Desai, Professor Emeritus, Centre for Study of Global Governance at London School of Economics, spoke on the effects of recession on the economy and revival of the economy.

Lord Desai said, "We don't have any major recessionary problems and now is the time to accelerate the growth of over and above 9 percent. I think the economy is capable of a double-digit growth rate but that will require serious reform, of the landmark nature."

"Is it going to happen? I am not so sure because I don't know if the government is actually seeing that there are over all recession problems and that now they can confidently move ahead and face the longer term problems of the economy," he added.

The other speakers at the seminar included Lord Robert Skidelsky, Emeritus Professor, University of Warwick; Robert Zagha, Country Director-India, World Bank.

Rajiv Kumar, Director and Chief executive, ICRIER; Gurcharan Das, the chairman of Centre for Civil Society; and Suman K Beri, the member of Prime Minister's Economic Advisory Council were the other distinguished guests. (ANI)