CPI inflation falls in September; will RBI act? 
new Delhi: Inflation based on the Consumer Price Index (CPI) has decelerated to a record low since the index was launched in January 2012, even as factory output growth continues to be flat, increasing pressure on the central bank to cut interest rates earlier than it would have wanted to. CPI-based inflation eased for the second month in a row to 6.46% in September, compared with a downward revised 7.73% a month ago, driven by lower price increases in food and fuel items. A Reuters poll of 28 economists had predicted retail price inflation in September at 7.2%.
The Index of Industrial Production (IIP) rose 0.4% in August, unchangedfrom July and down from 3.94% in June, data released on Friday showed. JPMorgan cut its India gross domestic product (GDP) growth projection for 2014-15 to 5.1% from 5.3% after the factory output data was released.
“IP (industrial production) debacle is the straw that breaks the camel’s back,” JPMorgan said in its 10 October report. India’s GDP grew 5.7% in the three months ended 30 June, the fastest pace in two-and-a-half years, and had sparked optimism that Asia’s third largest economy was set for a rebound after two years of sub-5% GDP expansionWeak factory output growth in the past two months has dampened some of the optimism and enthusiasm that followed the ascent of the Bharatiya Janata Party to power with a decisive mandate in the April-May general election.
In the year to next March, the government expects the economy to grow 5.8%, and is counting on a revival of investments and big-ticket infrastructure projects. The Reserve Bank of India (RBI) left its policy rates unchanged last month, citing high retail inflation and reiterated its resolve to bring down consumer price inflation to 6% by January 2016.
The continuing decline in crude oil prices may cause a further fall in retail inflation. The ministry of petroleum and natural gas said in a statement on Monday that the international crude oil price of Indian basket as computed by the petroleum planning and analysis cell was $88.23 per barrel on 10 October, compared with $90.50 per barrel on the previous publishing day of 9 October.
pratima kumari
new Delhi: Inflation based on the Consumer Price Index (CPI) has decelerated to a record low since the index was launched in January 2012, even as factory output growth continues to be flat, increasing pressure on the central bank to cut interest rates earlier than it would have wanted to. CPI-based inflation eased for the second month in a row to 6.46% in September, compared with a downward revised 7.73% a month ago, driven by lower price increases in food and fuel items. A Reuters poll of 28 economists had predicted retail price inflation in September at 7.2%.
The Index of Industrial Production (IIP) rose 0.4% in August, unchangedfrom July and down from 3.94% in June, data released on Friday showed. JPMorgan cut its India gross domestic product (GDP) growth projection for 2014-15 to 5.1% from 5.3% after the factory output data was released.
“IP (industrial production) debacle is the straw that breaks the camel’s back,” JPMorgan said in its 10 October report. India’s GDP grew 5.7% in the three months ended 30 June, the fastest pace in two-and-a-half years, and had sparked optimism that Asia’s third largest economy was set for a rebound after two years of sub-5% GDP expansionWeak factory output growth in the past two months has dampened some of the optimism and enthusiasm that followed the ascent of the Bharatiya Janata Party to power with a decisive mandate in the April-May general election.
In the year to next March, the government expects the economy to grow 5.8%, and is counting on a revival of investments and big-ticket infrastructure projects. The Reserve Bank of India (RBI) left its policy rates unchanged last month, citing high retail inflation and reiterated its resolve to bring down consumer price inflation to 6% by January 2016.
The continuing decline in crude oil prices may cause a further fall in retail inflation. The ministry of petroleum and natural gas said in a statement on Monday that the international crude oil price of Indian basket as computed by the petroleum planning and analysis cell was $88.23 per barrel on 10 October, compared with $90.50 per barrel on the previous publishing day of 9 October.
pratima kumari
pgdm 2rd sem
comment:-The continuing decline in crude oil prices may cause a further fall in retail inflation.
comment:-The continuing decline in crude oil prices may cause a further fall in retail inflation.
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