Business News This Week
Business News: The day was mixed bag for the economy on 29 January 2009 as the government of India has cut the fuel and LPG price. On the other hand the inflation rose to 5.64 per cent from 5.60 per cent.
The government of India has cut the fuel prices as - Rs 5 on petrol, Rs 2 on diesel and Rs 25 on LPG cylinder each. The cut in the fuel prices were declared on Wednesday night by the government of India.
There were expectations of cut in the fuel prices as the price of crude had been trading low in the international market. Once the crude price has been decreased to only $ 40 per barrel from $ 140. And the price of crude in the international market has been constant for last two months.
The fall in the crude price in the international market made the government easy to cut the fuel prices and this is a great respite for the people in India.
The inflation for the weekended 17 January rose to 5.64 per cent from 5.60 per cent. Last week the also there was slight rise in the inflation rate in India. The rise of the inflation could be said due to the bottleneck in the market.
Previous the strike called by the transporters could be the one of the major reasons. While the RBI has been tracking the inflation figures in order to set its credit policy. The credit policy review on January 27 was a bit of disappointing for the industrial sector as the it could not pump out money into the system. Earlier the RBI infused money into the system through packages.
However, the government and RBI would take measures to keep the inflation under control. But the rise in the inflation would be cause of concern for the economy.
The government of India has cut the fuel prices as - Rs 5 on petrol, Rs 2 on diesel and Rs 25 on LPG cylinder each. The cut in the fuel prices were declared on Wednesday night by the government of India.
There were expectations of cut in the fuel prices as the price of crude had been trading low in the international market. Once the crude price has been decreased to only $ 40 per barrel from $ 140. And the price of crude in the international market has been constant for last two months.
The fall in the crude price in the international market made the government easy to cut the fuel prices and this is a great respite for the people in India.
The inflation for the weekended 17 January rose to 5.64 per cent from 5.60 per cent. Last week the also there was slight rise in the inflation rate in India. The rise of the inflation could be said due to the bottleneck in the market.
Previous the strike called by the transporters could be the one of the major reasons. While the RBI has been tracking the inflation figures in order to set its credit policy. The credit policy review on January 27 was a bit of disappointing for the industrial sector as the it could not pump out money into the system. Earlier the RBI infused money into the system through packages.
However, the government and RBI would take measures to keep the inflation under control. But the rise in the inflation would be cause of concern for the economy.
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