Retail inflation rises to 4.41% in Sep on dearer food items
Economic affairs secretary S C Garg said that all macroeconomic parameters are performing well.
The proposed hike is in accordance with the accepted formula based on the recommendations of the 6th Pay Commission
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Friday's US data showed addition of 173,000 jobs in August.
The 6-member Monetary Policy Committee, headed by Reserve Bank of India Governor Urjit Patel, in its fifth bi-monthly review, kept the repo rate unchanged at 6 per cent and reverse repo at 5.75 per cent.
The rate of price rise in vegetables stood at 15.15 per cent in August as against 16.88 per cent in the previous month.
The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission, it said.
Inflation in rural and urban areas in July was 8.45 per cent and 7.42 per cent, respectively.
If imputed inflation for April and May is used, then you have inflation of over 6 per cent for two consecutive quarters, which is a worrying signal for the RBI.
Industrial output had slowed to 5-month low of 2.1% in March.
The Consumer Price Index-based inflation rose to 5.11% in January
Subramanian's paper comes at a time when concerns have been raised in various quarters about the official economic growth numbers. The Economic Advisory Council-PM said the Base Year of India's income calculations were shifted to 2011-12 on the basis of recommendations of several committees with experts in national income accounting.
More rate cut by RBI unlikely this fiscal, say Ind-Ra
Rediff.com takes its readers through the various moods of Raghuram Rajan.
Price rise in services sector after the goods and services tax (GST) gets implemented and the pay hike of central government employees will make inflation control a tough job for the central bank
Rajan had said that there was lack of clarity about the new method.
The RBI expects non-food credit growth to pick up marginally to 15 per cent in 2013-14 from 14 per cent achieved in the previous fiscal and deposit mobilisation to be flat at 14 per cent.
Pulses cropping has jumped to 39.4 per cent above 2015 levels.
The Wholesale Price Index-based inflation was (-)4.54% in Sep.
RBI targets to keep inflation at 4 per cent, (+/- 2 per cent), and its rise beyond this comfort zone will put pressure on the central bank to hike rates.
During the month, inflation in vegetables shot up to 35.99 per cent, as against 26.10 per cent in October. Likewise, the prices of cereals and eggs grew at a faster pace of 3.71 per cent.
Inflation in food articles inched up to 0.69 per cent in September.
The RBI, which has been keeping rates at an elevated level citing the high inflation, wants to bring it down to 6 per cent by January 2016.
Growth in China's consumer inflation slowed than market expectation to 1.6 per cent in September, the lowest since January 2010, according to the official data released on Wednesday.
A reversal of policy at this juncture could jeopardise the recent gains on inflation
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The food inflation in July softened to 11.24 per cent from 11.84 per cent in the previous month, according to the official data released on Monday.
'If there is an RBI majority in the committee, there is no question of a veto.'
Govt likely to get full control on policy rate.
Rajan had cautioned against any deviation from the fiscal discipline path.
The rate of price rise was at 6.77 per cent in June last year.
The rise in May Wholesale Price Index based inflation has been mainly on account of 31.44 per cent increase in prices of potato, 19.40 per cent in fruits and 12.75 per cent in rice.
The report said efforts to stabilise the economy through monetary policy interventions need to be complemented by appropriate fiscal policy measures.
According to currency dealers, any sharp movement in the rupee might result in the Reserve Bank of India intervening in the foreign exchange market.
Subdued prices of vegetables, cereals and dairy products pushed down retail inflation to a three-month low of 8.28 per cent in May.
Asserting that retail inflation excluding food and fuel is still at an elevated level, the Reserve Bank of India on Tuesday said it would endeavour to curb price increases.
On the reduction in the SLR ratio, he said it was a signal from the point of view of long-term reforms.
At least a 25 basis points hike can be expected on the October 5 policy
The government is likely to name a successor to Rajan sometime this month
Millions of central government employees were taken for a ride on April Fool's Day.
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