Inflation dips below 5%

The headline inflation plunged below 5 % in April 2013. According to government data released on Tuesday, the wholesale price index (WPI)-based inflation was recorded at 4.89 per cent in April. The inflation was at 5.69 per cent in the month of March.

The inflation is below five per cent, for the first time the figures were seen below five after November 2009. The moderation in the inflation could prompt the apex bank to cut further key interest rates.

In economics, inflation is referred to rising prices and fall in the value of money (in exchange).

Recently, the Reserve Bank of India had cut the key interest rates following moderation in the inflation. A further cut would help the stock markets to gain more confidence.

The equity market in India has been seen strong as the BSE Sensex was zoomed to the highest of 20,000 mark, after many choppy sessions.

The inflow of the fund into the stock market by the foreign institutional investors (FIIs) was high in the first week of the May 2013. For the same period, the FIIs had poured Rs. 26,000 crore rupees into the Indian equity market.

The easing inflation could be a bit of relief for the consumers as they witnessed a moderate cut in the petrol price by the government of India.

Considering all the above cases, it could be projected the Indian economy has been on the track gain from the economic slowdown.

However, some negative forces like the uncertain political activities, border tension with China, devaluation of rupees in the international forex market and low industrial growth rate could pose threat to Indian economy and may derail it from the path of recovery.

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Inflation falls to 6.62% in January

The headline inflation dipped to three year’s low of 6.62 per cent in January 2013 from 7.18 per cent in December 2012. The inflation was at 7.24 per cent in November 2012.

Considering the moderation in inflation in December 2012, the RBI had slashed the key interest rates recently.

The fall in inflation would lead to further cut in interest rates by the apex bank if it finds time conducing for further cut in key interest rates to boost the economy.

However, the hike in the petrol and diesel deregulation would have adverse impact on the inflation in India. The food inflation in primary articles was increase during the same period, onion at 11.52 per cent and potato at 79.07 per cent.

The easing inflation data could not help the market to close in green; both the stock markets were ended in red on Thursday. The BSE Sensex was closed at 19,497.18 losing 110.90 points or 0.57%.

The Nifty was closed at 5,896.95 points shedding 36points or 0.61%.

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Inflation mounts to 7.23% in April

The headline inflation in April 2012 accelerated to 7.23 per cent from 6.89 in March due to costly food and manufactured goods. High inflation in Indian economy would have high impact on all the sectors, which may force the apex bank to bring some changes in the interest rates.

The falling value of money against US dollar is another major concern for Indian economy, which not only making the imports more costlier but also pushing the inflation up.

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Food Inflation in India drops to 1.81

Business News: Food inflation in India dropped to 1.81 per cent for the week ended on December 10, the lowest since last four years. The fall in food inflation is a welcome sign for the government and Reserve Bank of India.

The RBI will review its monetary policy on January 24 and the fall in food inflation may help the apex bank to decide about the key interest rates. It is believed that the moderation in the food inflation in India would help the economy in many ways.

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Food Inflation drops to 4.35%

Business News: The food inflation for the week ended on December 3 dropped to 4.35 per cent giving big relief to the government and Reserve Bank of India. The inflation and food inflation have been the major concern for the government, and the food inflation in India dropped to 4 year low.

In February, 2008 the lowest food inflation was recorded at 4.8 per cent on 23rd of the same month. The fall in the food inflation will give relief to household budget too, as they will pay less for the essential goods and services in the market. As per the WPI data, the price of vegetables dropped by around 12 per cent. 

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Food Inflation drops to 10.63%

Business News: The food inflation in India has dropped to 10.63 per cent for the week ended November 5 from 11.81 per cent recorded in the previous week, according to the date released by the government of India.

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Food Inflation rises to 12.21%

The food inflation in India has gone up to 12.21 per cent according to the data released by the Ministry of Commerce & Industry on Thursday. The food inflation has increased to 12.21 per cent for the week ended October 22 from 11.43 per cent recorded on the week ended on October 15.

The Finance Minister of India, Pranab Mukherjee said that the inflation is a matter of great concern. According to the data, the annual rate of inflation, calculated on point to point basis, stood at 12.08 percent (Provisional) for the week ended October 22 as compared to 11.75 percent (Provisional) for the previous week ended October 15.

The index for 'Food Articles' group rose by 0.7 percent to 202.2 and Non-Food Articles' group declined by 1.4 percent to 177.2 for the week ended October 22. The food inflation of 12.21 per cent is the highest since Jan 2010.

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Annual food inflation mounts to 11.43%

The annual food inflation in India rose to 11.43 per cent on weed ended on October 15 comparing to 10.60 per cent recorded in the previous week. The fuel inflation was recorded at 14.70 percent for the same period; however it was at 15.71 per cent in the previous week.

According to a data released by the government of India on Thursday, the food inflation mounted to 11.43 per cent and the double digit food inflation has been weighing high on the Indian economy.

In order to tame the headline inflation, which is near to the double digit, the RBI has raised its key interest rate – repo rate to 8.5 per cent by 25 basis points on Tuesday. The apex bank has made variation in the key interest rates for 13th time to check the inflation in India.

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Food Inflation mounts to 10.6%

The food inflation in India climbed to 10.60 per cent for the weekended on October 8, according to a data released by the Ministry of Commerce & Industry. On Thursday, the food inflation touched the double digit mark as it was expected.

The headline inflation was also near to the double digit mark. It is reported that the soaring vegetable prices moved the food inflation above the double digit mark for the week ended on October 8.

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PM to discuss over slowing economic growth and high inflation today

The Prime Minister Dr. Manmohan Singh will chair a meeting today in the capital to discuss slowing economic growth and high inflation. The high inflation which is at around 9 per cent and the economy to face the recession sort of situation.

The apex bank had hiked the key interest rates 12 times since March 2010 to tame the inflation in India. The headline inflation was recorded at 9.27 per cent in the month of September, while the food inflation was at 9.32 per cent for the weekended October 1.

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Food Inflation mounts to 9.41%

Food inflation in India has gone by 0.28 per cent to 9.41 per cent in this week comparing to 9.13 per cent recorded in the previous week ended at September 24. The government data shows that the costly vegetables and other products pushed the food inflation in India.

The high food inflation and the high headlines inflation have been big concern for the economy as well as for the people. The apex bank has revised the key interest rates 11 times since March 2010, but hardly there was any impact on the headline inflation in India, which is zooming near to a double digit mark.

The plunging stock market due to the negative sentiments from the debt crisis made the investors keep a option open over their safe investments. However, today the market Bombay Stock Exchange regained confidence of investors, by achieving the 16,000 points market in the intra-day trading session.

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Double digit food inflation is a conern?

The food inflation or costly food item in other words is above the double digit in India and a threat to the Indian economy.The deputy chairman of planning commission also started that the food inflation as a concern.

The headline inflation has been at around 9 per cent and the apex bank has raised the key interest rates for more than 11 times since March 2010.Both headlines inflation and food inflation, those have been escalating day-by-day and mounting pressure on Indian economy

According to a statement issue by the Commerce Ministry, the Inflation in the primary articles has increased to 12.93 per cent from 12.40 per cent in the week ended August 13.

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Food Inflation eases to 9.03%

Food inflation for the week ended Aug 6 eased to 9.03 per cent from 9.90 per cent recorded in the previous week. The finance minister Pranab Mukherjee said still the rate of the food inflation is unacceptable. The BSE Sensex and Nifty closed in red on Thursday.

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Food inflation slides to 7.33%

The food inflation fell to 29 month lowest of 7.33 per cent for the week end July 16 from 7.58 per cent. This is the second consecutive fall recorded in the food inflation according to the data released by the government of India.

Does that mean, food items become cheaper in the country? No, there is fall in the prices of food items but the tag should be considered for long-run. The headline inflation stands at 9.44 per cent in June 2011 and it was 9.06 per cent in May 2011.

Adding insult to injuries, the government has hiked the price of petrol, diesel, kerosene and LPG so as, the Reserve Bank of India hiked the key interest rates for 11th time this week reviewing its monetary policy.

The complete impact has been shifted by the wholesales and bankers to their customers. However, the easing figures in the food inflation tough bit relaxing the feel of pinch of the people in the country.

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Inflation rises to 9.44% in June

The inflation mounts to 9.44 per cent from 9.06 per cent in June. The inflation in last June was around 10 per cent.

To check the inflation, the Reserve Bank of India had hiked the interest rates for ten times since March 2010.

Following that the hike from RBI, most of the banks have hiked the primary lending rates making loans dearer for the customers.

The central government adding insult to injuries hiked the diesel, LPG and kerosene which escalated the inflation further.

Experts believe that the high inflation might is the biggest concern for Indian economy.

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Food Inflation falls to 7.7 %

Good news, food inflation for the week ended June 18 fell to 7.78 per cent from 9.13 per cent as measures in the previous week.

According to the data released by the government of India, the vegetable were cheaper by 10 per cent for the week ended June 18.

The food items weights 20 per cent of the WPI. Headline inflation was at 9.06 per cent in May 2011.

The government's recent hike in the price of diesel, LPG and kerosene, seem have not impact on the food inflation.

Experts were speculation that hike might fuel the spiral inflation in India. Some extend that is possible in the long-term, and the headline inflation may go up to double digit.

The inflation was in double digit previous year. RBI had raised the interest rated for 10 times since March 2011 to contain the inflation.

The fall in the food inflation is a big relief for the government, as it has been criticized for its economic policies.

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Food Inflation Rate touches to 11.4 per cent

"Of course it (food inflating) is a concern," said the Finance Minister Pranab Mukherjee to reporters on Saturday. Mukherjee held meeting with chiefs of Public Sector Undertakings(PSU) banks. The food inflation shot up to 11.4 per cent for the weekended July 31. Its was on single digit couple of weeks back.

The inflation is the major concern for the nation and it directly affected the budget of household. The variation in the interest rates to tame the inflation by the RBI will have impact on the Indian economy and stock market. The food inflation will have impact on the agriculture market and its products. And the impact on the agriculture sectors would be high.

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Montek Singh Expects Inflation coming down in Two Months

Business News Network , India

New Delhi: The Planning Commission Deputy Chairman Montek Singh Ahluwalia is optimistic about inflation coming down in next two months. He expressed his view over the soaring inflation while talking to media person in the capital on Wednesday. Soaring inflation rate is the biggest concern the India economy is facing now.

Experts believe that the price of goods would go up further following hike in the petrol and diesel prices. This will ultimately ignite the inflationary forces and could imbalance the demand and supply factors in the market. The Prime Minister had refused to have roll back in the hike of petrol and diesel prices early thins month.

However, Montek Singh has expressed his satisfaction over the growth rate of India economy. He added the Reserve Bank of India should take care while containing inflation through monetary policies and it should not affect the growth of the economy.

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Milk Price to Soar ?

Business News This Week : After sugar, now soaring milk prices could be new trouble for middle class families. The price of milk in every state may increase, there are chances. With rise in the price of the milk and sugar, the price of all the goods made from these two ingredients will rise. The food inflation is fluctuating but the budget of household is increasing.

The price of the essential foods could be with in reach of the poor families. If the price of milk will rise, may there the matter of some ruppes, but too difficult for the middle class families. The big question here rises, who is going to take the advantage of rise in the milk price. Its obvious, that the money from the pocket of middle class family is moving to the bank or treasure account of a richest person. Rise in food inflation is just widening the difference between the rich and poor in the society. Which is a big sign of economic crisis in the day to come. 

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