Food inflation at -1.03% versus -0.42% WoW
The food price index fell 1.03 per cent in the year to January 14, compared with an annual drop of 0.42 per cent in the previous week.
By Agencies |
NEW DELHI: The food price index fell 1.03 per cent in the year to January 14, compared with an annual drop of 0.42 per cent in the previous week.
Headline inflation may moderate to 7 percent or little lower by March, R. Gopalan, secretary of economic affairs in the ministry of finance said.
The fuel price index climbed an annual 14.45 percent, the same as the week before.
The primary articles price index was up 1.89 percent, compared with an annual rise of 2.47 percent a week earlier.
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Earlier this week, Reserve Bank of India said inflation, which is showing signs of moderation, remains a concern in view of volatile crude prices in international markets and widening fiscal deficit.
"...upside risks to inflation arise from global crude oil prices, the lingering impact of rupee depreciation and slippage in the fiscal deficit," the RBI said in its third quarter monetary policy review.
On food inflation, it said, "going by past trends, the extent of decline in vegetable prices seen in December... is usually observed in the winter season. As such, the decline in food inflation is likely to be limited in coming months".
There has been reduction in rabi acreage for pulses and it may have an adverse impact on prices, the RBI added.
The cash reserve ratio, the proportion of deposits that banks have to hold with the RBI, is a popular instrument to inject cash into the system. It now stands at 5.5%.
Headline inflation may moderate to 7 percent or little lower by March, R. Gopalan, secretary of economic affairs in the ministry of finance said.
The fuel price index climbed an annual 14.45 percent, the same as the week before.
The primary articles price index was up 1.89 percent, compared with an annual rise of 2.47 percent a week earlier.
u can add this to the copy
Earlier this week, Reserve Bank of India said inflation, which is showing signs of moderation, remains a concern in view of volatile crude prices in international markets and widening fiscal deficit.
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Attributing the decline in food inflation mainly to seasonal factors, the Reserve Bank ( RBI) said the impact of good vegetable output will remain limited in the absence of effective measures to address supply-side bottlenecks."...upside risks to inflation arise from global crude oil prices, the lingering impact of rupee depreciation and slippage in the fiscal deficit," the RBI said in its third quarter monetary policy review.
On food inflation, it said, "going by past trends, the extent of decline in vegetable prices seen in December... is usually observed in the winter season. As such, the decline in food inflation is likely to be limited in coming months".
There has been reduction in rabi acreage for pulses and it may have an adverse impact on prices, the RBI added.
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The Reserve Bank of India in its quarterly review meet on January 25, cut the cash reserve ratio (CRR) by 50 bps to ease tight liquidity pressure in the banking system. RBI kept repo and reverse repo rates unchanged at 8.5% and 7.5% respectively, despite mounting anxiety over slowdown in growth.The cash reserve ratio, the proportion of deposits that banks have to hold with the RBI, is a popular instrument to inject cash into the system. It now stands at 5.5%.
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Tuesday's cut lowers the CRR to 5.50 per cent from 6.00 per cent, where it had stood since April 2010, and releases Rs 32,000 crore ($6.4 billion) of liquidity into the banking system, the RBI said.Download
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