Posts Tagged ‘inflation’
Food price inflation rises to 17.5%
India’s food inflation rate rose slightly to 17.56 per cent in the year to January 23 from 17.40 per cent in the previous week while fuel prices were up 5.88 per cent from a year ago, an official statement said here today, quoting provisional data.
Indian Bonds Slip As RBI Up Inflation Rhetoric
Indian government bonds fell Tuesday after a deputy governor of the central bank said that the country’s spiralling food price inflation may lead to a broader price rise.
The views of Shyamala Gopinath sparked a sell off as market participants are concerned that the Reserve Bank of India may clamp down on liquidity or hike key policy rates to stave off burgeoning price pressures.
RBI curbs forex market play to control liquidity, inflation
The Reserve Bank of India (RBI) is managing inflation expectations by minimising intervention in the foreign exchange market and thereby RBI controlling liquidity in the system. Even as foreign investors brought in huge amounts, the funds have barely found their way to the central bank’s foreign exchange kitty.
De-hoarding of food items can control inflation
The Centre will have to work on some governmental interventions in the food market to arrest the inflationary trend, which is moving up alarmingly. This was indicated by the newsly appointed chief economic advisor to the Finance Ministry, Kaushik Basu.
Amid inflation worries, India projects 7.75 percent growth
Amid concern over spiraling inflation, due mainly to galloping food prices, India Friday projected a 7.75 percent growth for this
fiscal even as the world at large is still struggling to overcome the year-long slowdown.
“The remarkable turnaround of the Indian economy has been widely commented upon in India and internationally,” said the mid-year fiscal review for 2009-10, tabled in parliament by Finance Minister Pranab Mukherjee.
RBI may take harsh steps as prices soar
The rate of inflation shot up to a 10-month high of 4.78% during November, against just 1.34% in October, largely on account of rising food prices. This may prompt the Reserve Bank of India to change its monetary policy to tighten money supply, leading to a rise in interest rates.
Burning food rates turn heat on economy
Economic actors such as food product makers, taxi operators and restaurateurs seem primed to trigger an inflationary spiral as
they attempt to cope with soaring prices of items such as dal, onions and eggs.
Food price inflation, which is generally attributed to supply-side pressures and not amenable to management through policy action, may be returning to haunt India . By spilling over to the rest of the economy, it could force demands for higher wages from drivers to electricians and has the potential to push up overall inflation, including for industrial products.