Note ban pulls prices down; Jan retail inflation at 3.17%
PTI Impacted by note ban, retail inflation fell to multi-year low of 3.17 per cent in January and may prompt the Reserve Bank to have a re-look at its hawkish monetary stance in the next policy due in April. Retail inflation has declined because of the impact of cash crunch following demonetisation of old Rs 500 and Rs 1000 notes with effect from November 9, 2016, experts said. In its policy last week, RBI retained the benchmark interest rate and changed the stance from 'accommodative' to 'neutral', indicating that there won't be any rate cut in near term. It may however have to review its policy stance in the wake of retail inflation touching multi-year low in January. ...
Retail inflation at 4.31%, a 13-month low
The Dollar Business Bureau Retail inflation dropped sharply for the second consecutive month in September, reaching a 13-month low endorsing the Reserve Bank of India’s (RBI) decision for an interest rate cut in anticipation for such a development. The data issued by the Central Statistics Office on Thursday showed the combined consumer inflation rate at 4.31 percent for the month of September compared to 5.05 percent in August and 6.07 percent in July. The drop was because of a sharp decline in food inflation to 3.88 percent in September as against 5.91 percent in August. The latest data raises hopes of a further cut in rates as the inflation outlook could be benign for around six months and there is a good chance ...
Fall in global food prices favours Indias import plan
The Dollar Business Bureau Falling prices of food products in the international market can prove beneficial for India which needs to import many items to meet the domestic demand. Since the domestic food production is expected to reduce due to bad monsoon, the government has been considering increasing imports of certain products to bridge the production deficit. Government estimates say that India’s total food grain production is projected to be around 251 million tonnes during the current crop year ending in June. The estimated production is less than 265 million tonnes recorded a year ago. Earlier this month, Agriculture Minister Radha Mohan Singh said that his government was mulling over increasing imports of pulses to check its soaring price within the ...
