The rupee has depreciated 2.35 per cent in the past three months and one per cent in the past month, despite strong capital flows and falling oil prices.
Chief economic adviser to the finance ministry Arvind Virmani on Wednesday said the retail price-based inflation, which is ruling above the wholesale price index, will come down with a lag but would not fall as much as the rate of rise in wholesale prices is falling.
The increase by more than three per cent is largely due to jump in the rate of inflation in the case of WPI for fuel, power, light and lubricants
Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan may have found the Reserve Bank of India (RBI)'s inflation projections on the higher side, but independent experts agree with the central bank and expect both wholesale and retail prices to remain high.
D&N cites positive changes in momentum in certain segments of economy, but says some areas of concern remain
Top losers in the Sensex pack include Bharti Airtel, Infosys, Asian Paints, RIL, Coal India, HDFC Bank, HDFC, TCS, ONGC and M&M, falling up to 3.09 per cent.
Stock markets will remain closed on Tuesday
'We will likely be buffeted by tailwinds from the global economy, geopolitical shifts and robust domestic demand.'
The Central bank primarily factors Consumer Price Index while deciding on policy rate.
In February last year, it was (-)2.17 per cent.
Reiterating his earlier stance, BJP's Rajya Sabha member Subramanian Swamy has written a letter to Prime Minister Narendra Modi, asking him to sack RBI Governor Raghuram Rajan.
The 30-share Sensex ended up 257 points or 1.2% at 21,289 and the 50-share Nifty ended up 79 points or 1.3% at 6,321.
Changes the base year and included more sectors.
Sensex may remain under pressure this week due to weak global factors.
RBI watchers are going to be on tenterhooks for the next 3 weeks.
India's wholesale prices declined at a faster-than-expected annual rate of 2.33 per cent in March.
Former finance minister P Chidambaram on Friday rejected Finance Minister Arun Jaitley's contention in Lok Sabha that UPA government left behind double digit inflation.
Inflation based on the wholesale price index rose marginally to 4.55 per cent for the week ended December 3 from 4.54 per cent in the previous week due to the increase in prices of food items.
India's gross domestic product growth, which had fallen under 5 per cent, is expected to be between 5.4 per cent and 5.9 per cent this fiscal.
Chief Economic Adviser K V Subramanian on Friday said there is an "upside potential" in the estimates about the economy during the current financial year amid a faster-than-expected recovery. He said the final print could be better than GDP estimates given by various institutions, including the Reserve Bank of India, which projected contraction of 9.5 per cent during 2020-21. During the second quarter, India's economy recovered faster than expected as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5 per cent and held out hopes for further improvement on consumer demand bouncing back.
Spiraling prices of vegetables, non-food items and manufactured products pushed up inflation to 4.75 per cent for week ended October 29 from 4.49 per cent in the previous week.
RBI Governor Raghuram Rajan on Friday said repo rate has been hiked as inflation pressures remain high.
The CPI and WPI data for December 2013 holds the key for the third-quarter monetary policy review to be announced later this month.
The chief statistician feels there should be a rebound after companies integrate and adopt the GST system
But lower growth numbers in the quarters to come may not mean renewed weakness in the economy at the ground level, says Pranjul Bhandari.
Inflation moderates, but a rate cut is unlikely.
Richard Illey, chief economist, (Asia, ex-Japan) at BNP Paribas, talks to Business Standard on inflation and related issues ahead of the Reserve Bank's annual review of monetary policy.
Street expects RBI to keep CRR unchanged, opt for open-market operations to ease liquidity
India's economic growth rate is expected to be at least 6 per cent in the 2013-14 fiscal, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan said.
Food articles inflation at 8.43% compared to 8.14% m-o-m.
Costlier food items, including vegetables, pushed the October wholesale inflation to 7 per cent, the highest in the current financial year.
Inflation targeting framework is now enshrined as a formal agreement by the government and the RBI; thus, it may seem that we are flogging a dead horse, says Soumya Kanti Ghosh.
However, prices of most agricultural items, barring potatoes, onions and wheat, continued to rise.
As per official data released on Wednesday, WPI inflation in the food articles category rose to double digits at 11.91 per cent, driven mainly by price rise in onion, cereals and rice.
However, risks to the outlook stems from possible sub-normal monsoon and higher crude oil prices (on account of the crisis in Iraq)," the Economic Survey 2013-14 tabled in Parliament by Finance Minister Arun Jaitley said.
Inflation in pulses, vegetables and cereals was higher in Jan.
Wholesale Price Index for the month ended March moderated to 3-year low of 5.96 per cent against Reserve Bank's projection of 6.8 per cent.
Banking shares are down up to 11% after the Reserve Bank of India has increased the policy repo rate by 25 basis points from 7.25% to 7.5% with immediate effect.
Use a mix of instruments that will beat both the wholesale and consumer price indices
'Everyone confuses GDP to be a measure of output, when it is actually a measure of income.'
