Indian government has another trouble now. The USD has been rising for past few days compared to Indian currency. Economy is also facing tough times and the estimates to growth have been lowered for Indian manufacturing sector.
Citigroup report counts four major deficits for India - fiscal, current account, liquidity and governance. UPA II is already under attack of opposition over the policies and rising inflation across the nation. With latest CitiGroup report, the troubles for government will increase only.
Mumbai, July 14 : A benchmark index for Indian equities markets, which opened on a subdue note Thursday, crept up into the green as the latest inflation data came in on expected lines.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,563.69 points, was ruling at 18,715.86 points, up 119.84 points or 0.64 percent from its previous close at 18,596.02 points.
The 50-scrip S&P CNX Nifty of the National Stock Exchange was also trading lower at 5,632.3 points, up 0.8 percent.
New Delhi, June 30 : In what could come as a respite to consumers and policymakers, India's food inflation slipped to 7.78 percent for the week ending June 18, compared to 9.13 percent recorded in the previous week, official data showed Thursday.
Food inflation had risen to a two-month high last week.
As per data released by the commerce and industry ministry, the primary articles index fell to 11.84 percent compared to 12.62 percent in the previous week.
The index for fuels and power, however, rose to 12.98 percent.
Tuesday cited an up in the markets enabling the Indian equity benchmarks to shut their shops with moderate gains following positive global cues. Also, the market cited some low due to higher-than-expected inflation numbers during the day but the last couple of hours recovered all those losses.
The 50-share NSE Nifty was in a narrow range of 5490-5515 the entire day and was further trying hard to hold the 5500 mark at the close also. The index finally gained 17.70 points and ended at 5,500.50 and the 30-share BSE Sensex cited a high of 42.63 points and settled at 18,308.66.
New Delhi, June 9 : India's food inflation for the week ended May 28 rose sharply by almost a percentage to 9.01 percent as prices of essential items like fruits, meat, milk and onions increased, official data showed Thursday.
Food inflation had dipped to 8.06 percent the week before. The persistently high inflation is expected to result in another rate hike from the Reserve Bank of India (RBI) when it conducts a mid-quarterly review of the monetary policy June 16.
Mumbai, May 22 : Indian equities markets closed the week in the red with benchmark indices losing over one percent and broader indices slipping more, as bearish sentiments strengthened after oil marketing companies hiked petrol prices. A hike in diesel prices is also on the cards, which could result in a bout of high inflation.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) closed the week 1.11 percent or 205.19 points lower at 18,326.09 points, compared to its previous weekly close of 18,531.28 points.
New Delhi, May 16 : India's annual rate of inflation slipped a tad to 8.66 percent in April, compared to 9.04 percent recorded in the previous month, according to official data released Monday.
The fall in inflation was on the lines predicted by policy-makers but still remains much higher than the comfort level of the Reserve Bank of India and government.
New Delhi, May 12 : India's food inflation fell to 7.7 percent for the week ended April 30, compared to 8.53 percent recorded in the previous week, as prices of essential food items like milk, meat and pulses eased further, official data showed Thursday.
The fuel index, which has 14.91 percent weightage in the wholesale price index basket, fell to 12.25 percent during the week under review, compared to 13.53 percent in the previous week.
New Delhi, May 5 : India's food inflation declined marginally to 8.53 percent for the week ended April 23 compared to 8.76 percent recorded in the previous week as prices of pulses eased considerably, official data showed Thursday.
The index of primary articles, however, rose by 12.11 percent during the week under review from 12.08 percent in the previous week, according to the data released by the ministry of commerce and industry.
The annual rate of inflation of the country was recorded 8.31 per cent (provisional) during February of the current year. The recorded rate of inflation was based on the wholesale price index (WPI). For the similar month in the preceding year, it was recorded 9.68 per cent.
The official wholesale price Index for all commodities has gone up by 0.1 per cent in the month under review. The wholesale price Index for all commodities was recorded 146.0 (provisional) in this month. Last year, in the month of February, it was recorded 145.9 (provisional).
The inflation of the nation has been recorded 7.51 per cent in the month of February this year against 9.42 per cent in the same month last year.
Finance Minister Pranab Mukherjee has suggested Reserve Bank of India to take strong steps on inflation. According to the recent reports, finance ministry wants RBI to keep a strict check on inflation.
Finance ministry's concern comes at a time when RBI is about to announce its mid-quarterly review of the monetary policy on March, 17. RBI has raised key policy rates 7 times in one year from March, 2010 to control inflation. Its efforts counted and finally inflation graph started showing a negative path recently.
The one concern that has proved to be an over-riding factor in formulating this year’s budget is inflation. Nearly all the things done by the finance minister, and even things not done by him, has an explanation based on that one single concern.
This is the sharpest fiscal correction tried to achieve by any government in the last twenty years. One is advised not to go by the headline numbers of 5.1% fiscal deficit for this 2011 and 4.6% for 2012.
There are a number of problems in front of the Bank of England. After the high rate of inflation that was noticed during the whole period, it is almost sure that GDP data will show slowing down of the economy in the final quarter of this year.
And that puts BoE into dilemma of choosing between growth and inflation curb.
The inflation is at a high of 3.7 per cent which is much higher than the expectations and targets and it is believed that it would rise even further.
Gross domestic product (GDP) of China's developed on a faster-than- anticipated 10.3% during 2010, official statistics depicts. GDP statistics for the fourth quarter in addition confronted outlook of a hold back, with an augment to 9.8% from 9.6% as per the record.
Although inflation alleviated to 4.6% in December from a 28-month far above the ground of 5.1% the preceding month, as food price stress eased. Inflation during 2010 was 3.3%. Alert of the turbulence ignited by precedent periods of high-level inflation, China's leaders did restricting it a main concern.
Mortgage counselors are advising permanent rates may have strike their near to the ground point and the single method is up and about as lenders look forward to increase in the Bank of England base rate.
According to experts, stress is growing to intensify the Bank of England base rate subsequent to inflation (as calculated by the consumer prices index) strike 3.7 pc during December which well on top of the government's 2 pc aim.
In 2011, economists anticipate inflation rising further beyond expectations.
As per figures revealed by the Office for National Statistics (ONS) the consumer prices index (CPI) inflation rose to 3.4% in December from 3.3% the previous month.
Moreover, the Bank of England has anticipated that CPI would reach 3.5% in the beginning of 2011 due to rise in the prices of the commodities like oil, coffee, sugar, cotton and wheat and subsequently VAT will increase from 17.5% to 20%.
Amidst a situation of rocketing inflation and constant worries of interest rate hikes the Rangarajan Committee, details has come forward and is an eye opener. It points serious questions at the food security in the nation.
The level of under nutrition is shamefully amongst the top in the world. This cannot be the condition of a country that the world is looking forward to as one of the fastest developing country and the situation of under nutrition cannot be plainly contained by just spending an amount of Rs 10,000 crores on the Public Distribution System.
The rising food inflation in the country that is driving the entire nation crazy and the share market nuts has now started to worry the PM as well. The economist Prime Minister, Manmohan Singh will be calling a top level meeting on Tuesday to address the issue, of rising domestic inflation that has touched alarming levels of 18 percent.
Finance Minister Pranab Mukherjee, food and agriculture minister Sharad Pawar and planning commission deputy chairman Montek Singh Ahluwalia will be among the high profile members attending the meet.
Instead of expectations of better economy, Britons are getting worst hit in 2011. And the interest rates will not be increased by the Bank of England until there is a rise in inflation.
The economy will be controlled by these two paradoxes over the next 12 months. Data released in the first few days of this year has highlighted it.
It has been a fun time for services other than goods for export which is driving rise in economic for the first time since last recession in the mid-1990s of Britain's recovery.
The demon of inflation that is eating up the growth of India as an emerging economy has now also caught the attention of the International Monetary Fund. The inflation rates are in the range of 8.5% to 10.5% which is very disturbing.
The IMF in its report said that though India's growth looks to be on the upward trend, the inflation rates will certainly cause problems. The economic growth has made way for a lot of foreign capital in the country, but IMF cautions India that this could complicate the macroeconomic factors for the nation.
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