RBI's MPC begins 2-day meet; decision on key rate tomorrow
Business | February 06, 2018 16:54 ISTThe outcome of the 6-member MPC meeting is being keenly awaited by stakeholders amidst a huge sell-off in the stock markets globally.
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.
RBI in its previous monetary policy in August had projected the Consumer Price Index (CPI) based retail to be in the range of 4-4.5 per cent during second half of 2017-18.
India's WPI inflation in August has risen to 3.24 per cent, nearly double that of July
Retail inflation in June fell to 1.54 per cent, as compared to 5.77 per cent in the same month last year.
Revenue Secretary Hasmukh Adhia said competition will take care that this does not give way to inflation.
The CPI based retail inflation stood was at 2.99 per cent in April 2017. In May 2016, it was at 5.76 per cent. The overall food inflation was in negative territory at (-) 1.05 per cent during the month.
As per the data released today, inflation in food articles was 1.16 per cent in April, lower than 3.82 per cent in March.
The government also revised upwards the January inflation figure to 5.53 per cent from the provisional estimate of 5.25 per cent.
Official data released by the government showed that the higher fuel costs drove up inflation to its highest level in five months.
Country’s annual rate of inflation based on wholesale prices rose to 39-month high of 6.55 per cent in February from 5.25 per cent in the previous month.
Post-demonetisation, the RBI on Friday warned of a possible spike in inflation and stressed the need to make digital payments "safe and secure", even as it felt that the adverse and transient impact on the
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