Moderation in inflation a good signal: Montek

Moderation in inflation a good signal: Montek New Delhi: Planning Commission Deputy Chairman Montek Singh Ahluwalia on Friday termed moderation in inflation as "very good signal" (for economy) and hoped the RBI would take a cue from the decline in price rise.

"I think moderation of inflation is a very very good signal. We expect it to moderate slowly and it is good that it has happened," Ahluwalia said here.

The inflation measured in terms of Wholesale Price Index (WPI) moderated to 7.24 percent in November from 7.45 percent in the previous month this year. It was 9.46 percent in November 2011.

"I don't regard seven plus percent inflation as comfort zone. But the important thing is that if you think it is heading down, then may be the time has come to recognise that inflation is clearly softening and growth is weak and I am sure that RBI knows what to do," he added.

The Indian economy grew by 5.3 percent in the July-September period of the current financial year (2012-13), pulled down by poor performance of manufacturing and agriculture sectors, showing persistent signs of slowdown.

The gross domestic product (GDP) had expanded by 6.7 percent in the same period of last fiscal.

It had grown by 5.5 percent in the first quarter (April-June) of 2012-13.

On the government's decision to set up a committee on investment under Prime Minister, he said, "I think that is an extremely positive development. It reflects the fact that the government is aware that we need special mechanism for decision making to speed up implementation. It is very good signal."

PTI