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India's annual rate of Inflation rises to 9.89%
NEW DELHI, March 15, 2010: Driven by increasing food prices, India's annual rate of inflation, based on the wholesale price index, rose to 9.89 percent in February from 8.56 percent in the previous month, official data revealed Monday.
The latest data released by the commerce ministry showed food prices jumped 17.79 percent last month, while those for primary articles
rose 15.54 percent. Manufactured products were up 7.42 percent. Prime Minister Manmohan Singh on March 5 admitted in parliament that price rise was a cause of worry and assured the house that all possible steps were being taken to contain it.
At its January policy review, the central bank raised its WPI inflation projection for end-March 2010 to 8.5 percent. The Reserve Bank of India is widely expected to raise both its benchmark lending and borrowing rates by at least 25 bps each to 5.00 per cent and 3.50 per cent, respectively.
Fuelled by a slew of stimulus measures, GDP grew 7.9 per cent in the second quarter of the current
fiscal. However, due to the draughts, the growth dropped to 6 per cent in the third quarter on back of a 2.8 per cent negative growth in the farm output. The government has also completed its market borrowings of $9 billion for the current fiscal.
Food inflation rises to 17.81%
New Delhi, March 11, 2010 (PTI): Food inflation eased a bit to 17.81 per cent during the last week of February, but may not soothe overall inflation as petrol and diesel
prices have risen sharply following the hike in duty rates.While food prices are expected to moderate further in the weeks ahead, the
overall inflation may hit double digits by fiscal end as manufactured and fuel prices are going to get costlier, say experts.
Food inflation declined by 0.06 percentage points during the week ended February
27 from 17.87 per cent in the previous week. Though a range of essential items still continue to be expensive, the rate of
price rise has fallen in the past few weeks. On year-on-year pulses were dearer by 33.38 per cent, slightly lower than over
35 per cent in the previous week, while potatoes turned costlier by 22.46 per cent.
Inflation falls to -1.58 % on August 6, 2009
NEW DELHI, August 6, 2009: Government data showed on Thursday that price level for
all commodities stayed below zero for the eighth straight week, but prices of food items continued to surge, signaling political trouble for the Centre and three states preparing for local elections in a few months.
As per latest official data, annual inflation based on Wholesale Price Index stood at - 1.58% for the week ended July 25, 2009, while it was at 12.53% a year ago. The latest inflation number shows a
steeper fall in annual inflation recorded at the end of the previous
week at -1.54%.
This, however, is of no consolation to consumers as food prices are rising at 9.7% from year-ago levels, which does not adequately reflect in the wholesale price index due to its low representation.
For example, consumers have to pay 19% more for pulses, 26% more for
vegetables and 11.3% more for cereals compared to last year levels. This affects the poor more, who spend more of their disposable income on food. "It varies from section to section. At the lowest level, people spend 60% of their income on food," said Mr Sen.
Inflation falls further to 3.03 % on March 05, 2009
NEW DELHI, March 05, 2009 (Reuters): The wholesale price index rose 3.03 percent in the 12 months to Feb. 21, below the previous week's annual rise of 3.36 percent,
government data showed on Thursday.
The annual inflation rate was 5.69 percent during the corresponding week of the previous year.
The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is released weekly.
RBI cuts reserve ratio, scraps bond as markets tank
MUMBAI, October 10, 2008 (Reuters): The Reserve Bank of India (RBI) slashed its cash reserve
requirement on Friday to free up some $12 billion in funds and ease a cash
squeeze that drove overnight rates to an 19-month high and forced the government
to cancel a bond auction. The Reserve Bank of India cut the reserve ratio by 1.5 percentage points to 7.5
percent, increasing the scope of the 50 basis point easing announced earlier this week.
The RBI sprung into action after overnight rates soared to as much as 23 percent
in the money market, which reopened following Thursday's holiday. The rupee hit
an all-time low and the main stock index plunged more than 9 percent, joining a
global selloff on recession fears despite unprecedented coordinated action by
the world's leading RBIs to stave off a crisis. Earlier on Friday the government called off an auction for $2 billion worth of
government bonds, citing liquidity conditions.
Despite a global round of interest rate cuts on Wednesday and Thursday, Indian
overnight lending rates more than doubled from Wednesday's closing levels of
around 10 percent. "This is a short-term reaction to a huge panic crisis and a possibility of a run
in the rupee. I think they will try their best to prevent the rupee from
breaching 50 per dollar," said Abheek Barua, chief economist at HDFC Bank in New Delhi.
The partially convertible rupee hit an all-time low of 49.30 per dollar in early
trade before it recovered some of the losses with state-run banks spotted
selling dollars to underpin the local currency.India's RBI has assured the government it was keeping a close watch on the
market and would take appropriate steps, Finance Secretary Arun Ramanathan said.
Rising oil prices is the most influential factor to aid inflation
Oil prices have already breached the $146 a barrel mark, and economists as well as speculators warn that it could climb to the $170 level before year-end. Influential factor
Though there are several other factors that have aided inflation, Finance ministry officials point to the oil prices being the single most influential factor that has impacted severely on the figures.
There has been a steady and significant increase in global oil prices which have spiralled from just $101.15 a barrel on April 1 to
over $145 now. Along with it, the price of the yellow metal, gold, has also risen, after an initial fall. The value of the rupee has
fallen against the dollar, which has lost its shine in the current market. Bombarded by these factors, the BSE stock index continues to
take a beating — its 700-point rise last Wednesday may have been a flash in the pan. After almost touching the 20000-level earlier, the
Sensex was still above the 15000-mark on April 1 and even rose to test the 18000-level by the beginning of May. But after that, it has been a free fall.
Rising inflation shakes India Inc's business
confidence: survey
New
Delhi, July 04, 2008: Inflation raced to a new high of 11.63% to
the week ended June 21, 2008, on the back of surging food and and commodity prices.
New Delhi, Jun 29 (PTI) Rising inflation, which may up go up further, has shaken India's business confidence with 64 per cent of industry
representatives claiming the current situation to be worse than what it was six months ago.
"Manufacturing inflation will go up in the months ahead and it would be a persistent trend throughout 2008," the Federation of Indian Chamber of Commerce and Industry (FICCI) said after conducting a survey of
business confidence which has deteriorated in the last six months.
Manufacturing has a weightage of 63.75 per cent in the whole price index. Inflation touched a 13-year high of 11.42 per cent for the week ended June 14. The results of the survey conducted between May and June showed that performance of the economy, industry and at the firm level has further weakened.
"The Current Conditions Index is at its lowest level because of moderation in growth, rise in inflation and input costs,"
the chamber said. The pressure on industry on account of rising interest and input costs has breached the
absorptive capacity for many companies, that are being forced to revise prices upward.
"India Inc has struck a note of nervous optimism and expressed
deep concern at the current state of the economy," it said. Assessment of current industry performance shows that nearly
38 per cent of the companies witnessed deterioration in performance over the last six months. This figure stood at 29 per cent in the last survey. PTI |
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