Equity benchmarks had another rough day on Monday as Sensex crashed 1,457 points and Nifty tumbled more than 400 points to settle at 15,774.
When inflation remains above the tolerance level for a long time, it impacts the value of savings, thus decreasing the purchasing power of the money.
High inflation has also forced the Federal Reserve into what will likely be the fastest series of interest rate hikes in three decades.
The surprise announcement Thursday will end an extended period of extremely low-interest rates and face complications from weakening prospects for economic growth.
RBI Governor Shaktikanta Das said the upside risk to inflation persists and the recent spike in tomato prices would fuel food inflation.
RBI had in May hiked the repo rate by 40 basis points (bps) to 4.40 per cent amidst rising inflation concerns. This was the first hike after August 2018.
A rise in prices across all items from fuel to vegetables and cooking oil pushed WPI or wholesale price inflation to a record high of 15.08 per cent in April and retail inflation to a nearly eight-year high of 7.79 per cent.
Figures will increase pressure on govt to mitigate a cost-of-living crisis that economists forecast will produce the biggest drop in living standards since 1950s.
The 3-day-long court-monitored videography survey of the Kashi Vishwanath Temple-Gyanvapi Mosque complex in Varanasi concluded on May 16.
The WPI-based inflation was 14.55 per cent in March and 10.74 per cent in April last year.
In a veiled attack on the JP Nadda-led party, NCP spokesperson Clyde Crasto also sarcastically said it needs to be seen who will be blamed for the same and what will be the new diversion to hide this "failure".
RBI in an off-cycle announcement earlier this month hiked the key repo rate -- at which it lends short term money to banks -- by 0.40 per cent to 4.40 per cent to tame inflation.
The Consumer Price Index (CPI) inflation for April 2022 stands at 7.79%. In March, the figures for Consumer price-based inflation jumped to 6.95 per cent.
The Reserve Bank of India in a surprise move on Wednesday (May 4) announced to hike the repo rate by 40 basis points to 4.40 per cent, the first hike since August 2018.
RBI Governor Shaktikanta Das said that all six members of the MPC unanimously voted for a rate hike to contain inflation that has remained stubbornly above the target of 6 per cent for the last three months.
RBI hikes repo rate by 40bps hike to 4.40% in an unscheduled policy review citing inflation woes
The April PMI data pointed to an improvement in overall operating conditions for the tenth straight month. In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction.
According to estimates, the country’s economy is likely to grow at 8.2 per cent in 2022-23, down 0.8 per percentage points.
Known for his frank views, Rajan also said it was important to remember that the "war against inflation" is never over.
A group of people conducted puja in Varanasi to rein in the rising price of lemons in the country. The devotees said they had to knock on God's door since the government and administration are silent.
Top News
Latest News
