Inflation Archives - Page 2 of 2

Fuel inflation: Petrol and diesel prices hiked

July 2, 2009August 20, 2014Editor

It is not the first time that the government has hiked petrol and diesel prices in the run-up to the budget. On July 1, the government announced a Rs 4/litre increase in petrol prices and Rs 2/litre for diesel. That amounts to a price hike of 10% and 7% respectively.

Inflation at 0.26% in the April 11 week, up marginally

April 23, 2009August 20, 2014Editor

Though fuel prices have come down sharply, lowering overall inflation, basic, food and manufactured product prices either continue to rise or remain stagnant. In the week ended April 11, inflation was at 0.26%, almost close to zero but higher than the previous week’s level of 0.18%.

Primary article prices are up by 4.3% over the same week, a year ago with food prices being up by 7%. Mineral and ore prices have fallen sharply. Manufactured product prices have not fallen, with producers holding on to prices to compensate for falling volumes, it seems.

RBI expects inflation at 4% by year end; lowers rates to make borrowing cheaper

April 21, 2009June 30, 2009EditorLeave a Comment

RBI

RBI’s credit policy came with some welcome measures. India’s central bank has taken the following monetary policy measures:

Inflation nears zero: WPI at 0.18%

April 17, 2009August 20, 2014Editor

In recent months, industrial output and inflation have both falling. That has led to fears of deflationary conditions prevailing in the economy, an undesirable phenomenon. Some expect the RBI to lower interest rates again to revive demand. But the RBI itself wants the impact of the measures it has taken to percolate fully, before it takes more measures.

The inflation-IIP double whammy

July 15, 2008August 20, 2014Editor

The week has begun on a somber note. The political developments in Delhi, with the Left exiting the UPA and the Samajwadi party making an entry, will mean some changes ahead, some of them could affect business. Then, on Friday, inflation inched ever so closer to 12%. This was not as much a surprise but a confirmation that high levels of inflation won’t go away in a hurry. Indeed, if RBI’s level of 5.5% is taken as a benchmark, we have a long way to go before we can relax.

Ouch! India’s Inflation index at 11.42%

June 27, 2008August 20, 2014Editor

India’s wholesale price index (WPI), the widely watched inflation number, moved up a notch to 11.42%. This is a provisional number and it would be safe to assume that the actual figure would be closer to 12% (WPI for week ended April 19 was revised to 8.23% from 7.57%).

India’s inflation: reining in the government

June 22, 2008August 20, 2014Editor

Already, inflation is resulting in the government taking steps that don’t seem logical. The Finance Minister has for long been cheering the growth story and cautioning the central bank taking any monetary steps, which might hit growth. And, he has helpfully been ‘requesting’ public sector banks not to increase interest rates, for good measure. Though the RBI is an autonomous body, the pressure on it to ignore the warning signals of rising inflation was evident.