![]() Download Financial Express App for latest business news. Get live Share Market updates and latest India News and business news on Financial Express. If youve wondered why the government has found it so tough to slay inflation, its because the. However, slower January industrial output figures (5.3% compared to 11.6% a year earlier) has shown that RBI?s tight monetary policy is hurting consumer demand. Meanwhile, RBI governor YV Reddy said in Mumbai on Friday that the apex bank had accounted for rising oil and food prices, as well as persisting global uncertainties, when it left rates unchanged during the monetary policy review in January. It stood at 5.02% in the previous week and at 6.51% in the corresponding week a year earlier.Īttributing the rise in inflation to an increase in the price of imported commodities, finance minister P Chidambaram said on Friday that the government is ready to take any fiscal step to control the price rise, while trying to make the country self-sufficient in such items. Inflation stood above RBI?s 5% tolerance level for a second consecutive week. WPI-based inflation rose to a fresh nine-month high of 5.11% for the week ended March 1, dashing hopes of an interest rate cut by RBI. ![]() Clearly, policymakers have their inflation-corralling work cut out for them. ![]() If this trend continues, it could soon put paid to the plans of several companies?especially those in the IT-ITeS industry?that are opening up facilities in such cities, hoping to cash in on their lower costs. Interestingly, rapidly growing Tier-II towns like Pune (7.6%), Kanpur (7.6%) and Jabalpur (7.7%) had inflation rates higher than three of the four metros. A broader inspection of regional disparities shows that the east of the country had the highest number of cities with CPI above the national average: besides Shillong and Kolkata, they include Patna (7.4%) and Cuttack (6.6%). ![]()
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