"The increase in minimum support price of many crops may keep the food inflation from falling in the current year," said the finance ministry in the mid-year review. MSP, which is determined by the government to protect the farmers' earnings, has increased by 15-40 per cent in the current fiscal for three major categories -- wheat, paddy and coarse grains. The latest hike in MSP announced during this election year is the largest in the last four years.
The wholesale prices-based inflation stood at 0.48 per cent in the previous week. However, in the corresponding week a year-ago the rate of price rise was 8.57 per cent. Among manufactured category sugar, imported edible oil and oil cakes became expensive.
An account on how traders' lif has changed at the New Oberoi Shopping Centre.
Inflation has dropped to 0.48 per cent for the week ended May 2 from 0.70 per cent in the previous week.
The move aimed at blunting Finance Ministry, RBI's opposition to monthly reporting.
Inflation rose to 0.70 per cent for the week ended April 25 on account of higher prices of essential food articles like cereals, pulses, vegetable, milk and sugar.
National Sample Survey Organisation, a division within the ministry of statistics, has been roped in to collect price data for the new series and a dry run is on the anvil in the next couple of months. The new series will have 2004-05 as the base year, as against 1993-94 in the present mode and will reflect a consumption basket that is relevant in today's scenario, thereby making inflation data more reliable. The new series will have 2004-05 as the base year.
Leading indicators suggest economic activity has been disrupted after demonetisation.
Wholesale price-based inflation stood at 7.95 per cent in the corresponding week a year ago. Inflation, still nearly the lowest in three decades during the week, does not take into account policy rate cuts announced by the RBI in its annual credit policy.
The government's response to the price hike needs to be less panicky. The imposition of export duties, reduction in import duties, increasing the minimum export prices, restricting exports and raising the cash reserve ratio for banks have been among the measures that have resulted from this concern over inflation.
Inflation eased to 0.18 per cent, the lowest ever in the last three decades, even as prices of food articles like pulses, cereals and vegetable hardened during the week ended April 4.
Food inflation inched up to 17.40 per cent for the week ended January 16 on account of high prices of potato and pulses. The wholesale price-based food inflation was 16.81 per cent in the previous week. Potato prices rose as much as 57.56 per cent over the last year, followed by prices of pulses which jumped by 46.87 per cent.
Inflation declined to 0.26 per cent, the lowest ever in more than three decades, for the week ended March 28 mainly on account of food items and mineral products, fuelling expectations of rate cuts by the Reserve Bank.
There is little to suggest inflation levels will come down since you hardly see the same levels of seasonality in prices that were there earlier.
The widely-tracked wholesale price index (WPI), the cause of severe political pangs for the government every Friday, will be released on a monthly basis by the end of this year instead of weekly. In effect, instead of witnessing the release of inflation data for 52 consecutive weeks, the data will be made available only a dozen times a year.
While inflation dropped to 0.44 per cent for the week ended March 7, the BPLR of the top five Indian banks was in the range of 12.25-16.75 per cent. In the corresponding period last year, inflation was estimated at 7.78 per cent, while lending rates were in the range of 12.25-12.75 per cent. Real interest rate is the difference between WPI-based inflation and the prevailing benchmark prime lending rate.
Inflation drastically fell to a two-decade low of 0.44 per cent in the first week of March as food and fuel items turned cheaper, prompting analysts to say that rate of price rise would soon turn negative.
The food-price segment in the WPI has been growing at 8.3 per cent, much higher than the rise in the index for manufactured articles. In fact, segments like minerals and fuel have witnessed a decline in the WPI and have pulled the inflation down. The rise in food prices affects the common man more than the increase in prices of any other item.
In the second week of December, the food inflation was at 18.65 per cent. Potato prices more than doubled while pulses became costly by over 41 per cent over the last year.
The wholesale price index stood at 6.21 per cent during the corresponding week a year ago. Prices of maize, arhar and moong declined by one per cent each. However, prices of fuel remained unchanged at the previous week's level.
Inflation declined to 3.03 per cent for the week ended February 21 mainly on account of lower prices of food items such as fruits and vegetables and tea, and some manufactured items.
Inflation declined to about a 15-month low of 3.36 per cent mainly due to fall in the prices food articles like fruit and vegetables, pulses, and some manufactured items, raising hopes of cuts in the key policy rates by the Reserve Bank of India.
The wholesale price index, coming below four per cent, may prompt the Reserve Bank of India to cut key policy rates. An indication was made by the RBI Governor D Subbarao in Tokyo on Wednesday. During the week, prices of manufactured items such as sugar, imported edible oil and textile items such as cotton yarn got cheaper.
The increase in the rate of price rise, noticed after a gap of more than two months, was due to an eight-day nation-wide strike by truck operators, which began on January 5. Among the items that became expensive during the week were fruit and vegetables (9 per cent), wheat (2 per cent) and spices, milk, ragi and rice (1 per cent each).
Inflation declined for the tenth consecutive week today to 5.24 per cent for the week ended January 3, primarily due to decline in prices of food articles.
The wholesale price-based inflation stood at 0.92 per cent in the previous week.
The double whammy saw the Bombay Stock Exchange's benchmark Sensex fall 3 per cent or 456.39 to close at 13,469.85 even as global rating agency Standard and Poor's suggested it might lower India's sovereign rating of BBB- (investment-grade status) due to the country's deteriorating credit profile over the last 12 months.
Inflation declines to 8.00 per cent for the week ended November 29 from 8.40 per cent in the previous week.
Inflation dips to 8.40 per cent for the week ended November 22 from 8.84 per cent in the previous week.
Inflation falls to 8.84 per cent for the week ended November 15 from 8.90 per cent in the previous week.
The price difference between branded tea and loose tea has narrowed to a mere 5 per cent, helping the consumer to opt for branded labels. According to Bloomberg, the wholesale price index for tea in India gained 74 basis points from 128.30 in January to 222.50 at end of October this year. As a consequence, tea manufacturers in the wholesale and loose tea business, besides branded tea players, have increased prices.
The panel has also decided to increase the weight of manufactured items and the fuel group in the new index. Accordingly, the new WPI series, with a revised base year of 2004-05, will see the weight of manufactured items go up to around 65 per cent from 63.75 per cent in the present series.
Inflation is far too important a problem to have to rely on an inadequate and, ultimately, unreliable database for solutions.
An analysis by Business Standard suggests that for the week ended May 10, for which data will be released next Friday, the inflation rate will range between 7.67 per cent and 8.05 per cent, depending on how the index moves.
This lack of regular and detailed disclosure by companies or respondents lies at the core of the problem, one that has gained ground in recent weeks.
The wholesale price index-based inflation remained negative for the 11th consecutive week since June 6 mainly on high base. It was 12.82 per cent for the corresponding week last year. Prices of inland fish shot up by 25 per cent over the previous week, eggs became dearer by 10 per cent, masur dal was costly by 8 per cent, milk price went up by 5 per cent, and fruits and vegetables became expensive by 3 per cent.
The country's second largest two-wheeler maker Bajaj Auto Ltd (BAL) on Monday joined hands with Renault-Nissan to launch a small car in India by 2011 that will compete with Tata Motors' Nano on price point - Rs 1 lakh.
Interestingly, it is the long products that have witnessed the steepest price increase (between 50 per cent and 62 per cent), clearly reflecting the booming demand from construction activities. However, the flat products, by comparison, have seen a price increase of 17-24 per cent, almost half compared with the long products. Driven by demand, the share of the long products in the total steel production has been steadily increasing.
"The WPI is not a true reflection of the burden put on the people through the rise in prices of essential commodities. It is a misnomer to use it as an index for measuring inflation," party leader Sitaram Yechury told reporters. Quoting the oft-repeated phrase 'statistics, more statistics and damned lies', he said the weightage of the basket of food items to calculate the WPI was 22 per cent as against that of steel products which was 25 per cent.
The inflation in vegetables remained stubborn, which jumped 16.91 per cent
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