Arguing that BJP-led government was committed to fiscal consolidation, PM Modi said that the rising crude prices have not resulted in a spike in inflation and the macroeconomic fundamentals of the country remain strong.
The ex-FinMin claimed that effects of demonetisation were still evident on India's economy and holding up return on GST filling has further stressed the business owners.
Fuel price hike burns public's pocket, govt likely to take steps over petrol, diesel price hike
Wholesale price-indexed (WPI) inflation in India during April rose to four-month high at 3.18 per cent on increasing prices of petrol and diesel as well as fruits and vegetables.
However, it added a note of caution: "In India, given increased inflation pressure, monetary policy should maintain a tightening bias."
According to global financial services major UBS, the tone of the policy statement by the RBI’s monetary policy committee (MPC) is expected to “remain cautious while maintaining a neutral policy stance”.
Economic Affairs Secretary Subhash Chandra Garg said the government will come out with inflation-indexed bonds linked to CPI or retail inflation. Also, government securities of 1-4 years duration will be introduced.
The ease in the inflation number was mostly driven by lower food prices. However, the figure remains higher than the 4 per cent target of the Reserve Bank of India.
Calculated on the basis of Wholesale Price Index (WPI), the inflation was 3.58 per cent in December 2017 and 4.26 per cent in January 2017.
The agitations will be led by Mumbai Regional Congress Committee (MRCC) President Sanjay Nirupam, with party's municipal corporators, former and sitting legislators, parliamentarians and former ministers.
The outcome of the 6-member MPC meeting is being keenly awaited by stakeholders amidst a huge sell-off in the stock markets globally.
Economists are roughly divided on whether they think Fed's policymakers will raise rates three times this year, as in 2017, or four times. The pivotal factor will likely be how inflation performs.
The survey for 2017-18 was tabled by Finance Minister Arun Jaitley in Parliament today. He is scheduled to present the last full budget of the current Narendra Modi-led NDA government on February 1.
According to the data furnished by the Ministry of Statistics and Programme Implementation, December's consumer price index (CPI) inflation rose to 5.21 per cent from 4.88 per cent in November.
The data shows a 34 percentage point increase as compared to 3.59% WPI inflation for October and 1.82% during the corresponding month of the previous year.
The inflation rate stood at 3.63 per cent during the corresponding period last year. In October, the inflation rate was registered at 3.58 per cent.
In the previous monetary policy review held in October, RBI had projected inflation to be in range of 4.2-4.6 per cent for October-March (second half) period of this fiscal.
The CCEA's rationale behind the decision stems from the fact that exports will help farmers to dispose of their products at remunerative prices and also encourage them to expand the area of sowing.
On a sequential basis, the country's Consumer Food Price Index (CFPI) dropped to 1.25 per cent during the month under review when compared to 1.52 per cent in August 2017.
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