Giving a moment for the government to
take breadth from continuous tightening of monetary stance, Food
Inflation has come down to 4.35% during the week ended December 3, 2011
from 6.6% in the week earlier period. The index was drifted down by the
fall in prices of Vegetables, onions, potatoes and wheat.
During the period, the index has touched nearly four years low rate. Food Inflation was recorded as 10.78% during the corresponding period of the last year. The prices of onions became cheaper by 46.03%, potato prices declined by 33.28% and wheat were down 4.43%.
The overall vegetable prices were plummeted by 12.28 percent. However, the prices of pulses grew 11.76%, milk became costlier by 11.08% and eggs, meat and fish became dearer by 9.26%.
Fruits prices were became expensive by 9.37% while cereal prices were up 1.85%. The primary articles index was eased to 5.48% in December 3 week ended period from 6.92% in the week earlier. The prices of non-food articles were down 2.12% during the week as against 1.37% in the same period of the last year.
Yesterday, Chief Economic Advisor Kaushik Basu had expressed hope that the Food Inflation would come down to 3% in a month time. The present news gives relief for government and RBI, which had struggled a lot more than two years to combat with inflation.
In order to bring down the inflation, RBI had raised interest rates 13 times on every monetary policy review meeting since March 2010 minimum by 25 basis points. The present data signals corporates that the hawkish tool user, RBI may take rest from rate hike.
During the period, the index has touched nearly four years low rate. Food Inflation was recorded as 10.78% during the corresponding period of the last year. The prices of onions became cheaper by 46.03%, potato prices declined by 33.28% and wheat were down 4.43%.
The overall vegetable prices were plummeted by 12.28 percent. However, the prices of pulses grew 11.76%, milk became costlier by 11.08% and eggs, meat and fish became dearer by 9.26%.
Fruits prices were became expensive by 9.37% while cereal prices were up 1.85%. The primary articles index was eased to 5.48% in December 3 week ended period from 6.92% in the week earlier. The prices of non-food articles were down 2.12% during the week as against 1.37% in the same period of the last year.
Yesterday, Chief Economic Advisor Kaushik Basu had expressed hope that the Food Inflation would come down to 3% in a month time. The present news gives relief for government and RBI, which had struggled a lot more than two years to combat with inflation.
In order to bring down the inflation, RBI had raised interest rates 13 times on every monetary policy review meeting since March 2010 minimum by 25 basis points. The present data signals corporates that the hawkish tool user, RBI may take rest from rate hike.
No comments:
Post a Comment