Inflation

Budget 2011 hot potatoes are inflation and corruption

Budget 2011 hot potatoes are inflation and corruption

Finance Minister Pranab Mukherje said that the Budget 2011 will be ruled by inflation and corruption instead of tax rates and high finance.

In order to curb the prices and black money, finance minister has to announce tax and administrative changes.

Along with it, he needs to stimulate investors by restricting fiscal deficit to may be 5% this year and 4.5% next year, well below existing targets.

There is an immediate need of income tax relief for lower income groups to balance the rising inflation.

India’s food price index rose 17.05%

India’s food price index rose 17.05%

On account of rising prices of onions and petrol, food inflation in India is increasing at a faster rate. Onion and petrol prices were high by 6.5% and 4.5% respectively. Since December 25, food inflation rises to its highest level.

As per government data revealed on Thursday, India’s food price index rose 17.05% and the fuel price index shot up 11.61% in the year to January 22. While the annual food and fuel inflation stood at 15.57% and 10.87% a week before.

In late December inflation has reached a one year high of above 18% with 8.43% contribution alone in December.

Accelerating food inflation pressurizes the government

Accelerating food inflation pressurizes the government

For two consecutive weeks food inflation is on its downward trend, posting the food inflation at 15.52% on January 15 but due to accelerating food prices it has increased marginally and reached at 15.57% on January 15.

Government is finding very hard to deal with increasing food inflation and slowing industrial growth.

Government has put ban on the export of onions to make the onion within the reach of common man at low prices. RBI has also announced its third quarter monetary policy on Tuesday to deal with rising inflation.

Food inflation declines slightly

Food inflation declines slightly

India's food inflation has declined in the first week of January. There has been a decline in food and vegetable prices. But as per the analysts, the issues are not going to be settled here as the bank rates are yet to come in later of this month.

The Reserve Bank of India is expected to raise its key interest rates and it may stir the market as well. The bank rates will be decided at the policy meeting to be held next week. So the price pressures still remain high.

Inflation to be dealt seriously

Inflation to be dealt seriously

The biggest fiend in the great growth story of the Indian economy is inflation, as it is hampering the development projects. Inflation is posing a big threat to the economy's fundamentals and the government is trying harder than ever to curb it. In an effort to mellow the inflation rates the government is partially withdrawing the fiscal stimulus.

Inflation levels still above tolerance level

Inflation levels still above tolerance level

The monetary policy of India is due for announcement next week, ahead of which the governor Duvvuri Subbarao presented his view on the inflation levels and said that the rates were still above the `tolerance level' set by RBI. The governor was present in Kolkata, where he also mentioned to the reporters that the RBI is aiming to bring down inflation levels to 4-4.5%, which in itself seems a tough task.

India's wholesale price index saw a nine-month low of 8.58%, and the figures were quite heartening for the RBI ahead of the monetary policy announcement.

Inflation of food alleviate by 10.15 pct

Inflation of food alleviate by 10.15 pct

On Thursday, as stated by government data, the index of food price inclined by 10.15 per cent, whereas the index of fuel price mounted up by 10.57 per cent in the year to Nov. 13.

In the previous week, yearly fuel and food price rises placed at 10.30 per cent and 10.57 per cent, in that order. The initial stipulation price index was mounting up by 13.38 per cent in the most recent week contrasted with a yearly augmentation of 13.30 per cent a week prior.

RBI Annual Report Released, but Concerns about Inflation Persist

RBI Annual Report Released, but Concerns about Inflation Persist

There are various things that the Reserve Bank of India must ensure if it wants to sustain growth and boost productivity.

An improvement in the overall macro-financial environment has to be guaranteed through fiscal consolidation. While the strengthening of financial stability framework and progress on structural reforms too needs to be taken care of, along with this, the low and stable inflation regime also has to be maintained.

Fuel inflation ups the price of food

Fuel inflation ups the price of food

The rising price of fuel is destroying any hoped of an ease in food Inflation. The inflation in the food market had eased marginally to 12.63 % from the 12.92 % recorded a week earlier. However with the price of fuel increasing at the annual rate of 18% will affect the price of food in the coming weeks.

Kamal Nath, Shastri critique Planning Commission

Kamal Nath, Shastri critique Planning Commission

The planning is presently taking much heat and harsh criticism from many quarters even as the latest critique of its functioning was posted by Kamal Nath. Transport and Highways minister, Mr. Kamal Nath, recently called the planning commission “armchair advisor” to the various policies it is supposed to be undertaking head-on. Following Mr. Kamal Nath’s statements, senior congress minister, Mr Anil shastri criticized the panel's Deputy Chairman, Montek Singh Ahluwalia, for his rather optimistic remark that the inflation will ease out by December 2010.