Inflation likely above comfort levels in FY14: RBI survey

The proposed diesel price pass-through and the likely increase in electricity tariffs and coal prices, would exert some upward pressure on prices, the RBI Macroeconomic Survey said.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney SME Special
moneycontrol.com

Home » News » Economy

May 02, 2013, 06.25 PM | Source: Moneycontrol.com

Inflation likely above comfort levels in FY14: RBI survey

The proposed diesel price pass-through and the likely increase in electricity tariffs and coal prices, would exert some upward pressure on prices, the RBI Macroeconomic Survey said.

Like this story, share it with millions of investors on M3

Inflation likely above comfort levels in FY14: RBI survey

The proposed diesel price pass-through and the likely increase in electricity tariffs and coal prices, would exert some upward pressure on prices, the RBI Macroeconomic Survey said.

Post Your Comments

Share Cancel

Moneycontrol Bureau

The Reserve Bank of India’s Macroeconomic Survey has cautioned that inflation was likely to remain rangebound around current levels in the current fiscal (FY14), but above RBI’s comfort levels. The central  bank sees inflation rising again during the second half of this fiscal due to increase in diesel, power and coal prices. This will limit the elbow room for cutting interest rates going forward, the Survey said.

The RBI’s Survey of Professional Forecasters see FY14 wholesale price inflation at 6.5 percent, down from 7.3 percent in FY13.

"Significant suppressed inflation lingers in the system, despite the considerable pass-through that occurred during 2012-13. The proposed diesel price pass-through and the likely increase in electricity tariffs and coal prices, would exert some upward pressure on prices," the Survey said.

RBI expects crude global energy prices to be stable, but is guarded on how much India could benefit from it as well as from falling metal prices.

"Energy supplies are expected to improve, in part by the exploitation of shale gas reserves in the US. Along with soft metal prices, it could contribute significantly to keeping the imported inflation component low during 2013-14, though its ultimate transmission would depend on the extent of correction in the CAD and the consequent rupee exchange rate movements," the RBI Survey said.

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Inflation likely above comfort levels in FY14: RBI survey

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login