RBI recently cut repo by 0.25 percentage point, taking the rate to 7.25 per cent in three reductions since January.
The rupee and a BMW both move fast. So will a rise in the rupee make the BMW move even faster?
A host of factors including the reform measures taken by the government and decline in global oil and commodity prices have led to lower inflation, the Finance Ministry said on Wednesday.
There is considerable evidence to suggest that the Indian inflation problem is a has-been problem, a problem that has ceased to be.
Inflation fell for the second consecutive week to 7.02 per cent for the week ended December 4, mainly due to cheaper primary and fuel products.
In spite of Governor Raghuram Rajan's repeated concerns about inflation, many think there may still be a loosening of stance.
"The poor will not suffer disproportionately due to bouts of sharp inflation, and the middle class will not see its savings eroded," Raghuram Rajan said.
In industrialised countries inflation is less than 2 per cent, while most of the developing countries experience nearly double-digit or more inflation
Infrastructure and inflation targeting are expected to be top priorities for the new Reserve Bank of India governor, says A V Rajwade.
Brokers said a flurry of buying by investors in blue-chips mainly influenced the sentiment.
Inflation rose to 4.77 per cent for the week ended September 23 from 4.56 per cent in the previous week, mainly due to spurt in prices of pulses, wheat and iron ore.
Amid spiralling prices of essential commodities in the country, the government is planning to revamp the method for measuring inflation with the help of World Bank's technical assistance.
Inflation rose marginally to 3.75 per cent during week ended September 17 from 3.53 per cent a week ago, mainly due to increase in the prices of minerals, manufactured products and non-food essential items.
High oil prices are expected to push up inflation to 3.9 per cent in the next three months, hardening interest rates, economic think-tank IEG has said.
The Value Added Tax system has no adverse impact on consumer prices, and revenue earnings under the new regime have shot up by 15.3 per cent during the first quarter of the current fiscal, Finance Minister P Chidambaram told the Rajya Sabha on Tuesda
Sensex has shed over 150 points in afternoon trade.
India economy clocked a five-year high growth rate of 7.6 per cent in 2015-16.
In October, CPI inflation was 5 per cent.
Inflation declined for the fourth consecutive week ended May 21 to 5.38 percent mainly due to cheaper primary articles, including food and fuel products, even as fears that it could spurt looms large over an imminent price hike in fuels.
Inflation touched 5.48 per cent for the week ended April 9, mainly due to costlier vegetables, fruits, cooking gas and edible oils.
Inflation revised upwards to 7.91% for week ended July 24 from provisional level of 7.51%.
Inflation breached the 5.0 per cent figure with price level rising for the second consecutive week by 0.30 per cent to 5.3 per cent in the week ended March five despite cheaper fruits and vegetables.
Inflation fell for the tenth consecutive week to 5.01 per cent in the week ended February 5, touching the lowest level after the UPA came into power, due to cheaper vegetables, fruits and edible oils.
Inflation shed another 0.12 per cent to tick eight months' low of 5.25 per cent for the week ended January 29, despite costlier fruits and vegetables.
Inflation dropped by 0.05 per cent to 5.37 per cent, touching a 34-week low, for the week ended January 22, mainly due to cheaper vegetables, fruits, edible oils, minerals, fuel and manufactured products.
The broader markets ended negatively with mid-caps and small-caps shedding 0.5 per cent on the BSE.
RBI may hold rates in Apr; to go for 25 bps cut by June: DBS
Onions had the highest inflation rate among all major commodities.
The 30-share Sensex ended down 245 points at 28,799 and the 50-share Nifty closed down 81 points at 8,750
Inflation stood unchanged for the second consecutive week at 4.4 per cent for the week ended April 17 despite vegetables and tea prices skyrocketing and a marginal hike in some of the manufactured products, including cement.
Inflation remained static at 7.1 per cent during the week ended October 16 despite rise in prices of fuel and manufactured products.
Higher prices for essential commodities following the truckers' strike pushed up inflation by 0.16 per cent to a four-year high of 8.33 per cent for the week ended August 28.
Inflation rose for the ninth consecutive week to touch 39-week high of 6.21 per cent for the week ended January 10 with primary articles, including food products, and manufactured products becoming costlier.
Households continued to bear the brunt of increased cost of living with inflation rising by 0.35 per cent to 7.96 per cent for week ended August 7, mainly due to costlier vegetables, petrol, diesel and aviation turbine fuel.
Inflation shot up to 7.51 per cent, the highest in the last two years, due to soaring prices of vegetables and manufactured products.\n\n\n\n
Inflation fell to 3.84 per cent in the week ended July 30 from 4.07 per cent a week ago, due to cheaper food items and manufactured products although fuel prices went up.
PSU bank shares were the top gainers on hopes of a rate by the RBI on easing consumer inflation
Reversing its very short upward trend, inflation fell by 0.23 per cent to touch about two-year low of 4.10 per cent for the week ended June 18 even as food items and manufactured products become costlier.
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