Inflation is likely to average 3.7 per cent in 2015-16, higher than the moderate growth of 2 per cent logged in the last financial year, says a Dun & Bradstreet report. According to the research firm, the decline in crude oil prices and lower demand side pressures are expected to aid inflation to ease down along the “glide path”.
“D&B expects WPI (Wholesale Price Index) inflation to edge up to 3.7 per cent in financial year 2016 from 2.0 per cent in fiscal year 2015,” Dun & Bradstreet (D&B) said in a research note. However, the factors that are likely to pose upside risk to WPI inflation include administered price corrections, weak agricultural production and geo-political issues.