A lot will depend on the fresh arrival of supplies of seasonal vegetables and the summer-sown kharif crop. All eyes are on the monsoon rains, and when they start lashing north-west India, the country’s grain bowl
In this edition of Big Story, Moneycontrol's Sakshi Batra decodes the latest wholesale price data released by the government.
"The retail price of sugar in Delhi increased by about Rs 2 per kg in June-July 2016 and currently, the prices are in the range of Rs 40-41 per kg," Minister of State for Food and Consumer Affairs C R Chaudhary said in a written response to the Rajya Sabha.
The government has done its bit by sticking to fiscal consolidation path to contain deficit at 3.9 percent of GDP this fiscal and further cut it to 3.5 percent of GDP in the year beginning April 1.
The wholesale price of onion at Lasalgaon in Maharashtra-- country's largest market for the crop - shot up to Rs 54 per kg on Friday. Consequently in the price-sensitive Delhi retail markets, price of the kitchen staple has dramatically risen up to Rs 80 per kg.
Amid all the poll data, what will The Governor of Reserve Bank of India, Raghuram Rajan, do on the 4th of August in his Monetary Policy? It will be a non-event, according to a CNBC-TV18 poll. This is what the governor may not do on Tuesday.
Amid evolving growth-inflation dynamics, Ind-Ra expects the policy stance to reflect RBI's continued intention to anchor both inflation and inflationary expectations.
The Wholesale Price Index based inflation was at negative 2.4 percent in June, which was the eighth consecutive month of decline.
Decline in inflation and flagging private sector consumption as well as investment growth have led the Reserve Bank to cut the policy rate by 75 basis points since January, but the forecast of a weak monsoon season will curtail further rate reductions, the agency said.
Finance Minister Arun Jaitley says steps taken by the government has kept food prices low and pro-active govt will always keep food prices low.
The only thing that can be said is that when revisions are made, the government should make the new series of indices available for a long period so that analysts can compare what has really changed. And when CPI is changed, the WPI should simultaneously be changed.
The sequential fall, driven substantially by the 7.8 percent fall in food prices, is important for four reasons. And it could lead to a situation of negative WPI anytime between March and September 2015 due to the base effect.
In an exclusive interview to CNBC, RBI governor Raghuram Rajan said global central banks need to recognise the spillover effects their monetary polices have on emerging markets. On the issue of inflation, which both the government and RBI continue to grapple with, Rajan said setting a target was the responsibility of the government.
High inflation offers Rajan limited scope to cut key rates as demanded by industry to spur growth. Rising food prices, especially of onion and other vegetables, pushed up September inflation to 7-month high of 6.46 percent.
Expressing disappointment over RBI's decision of leaving interest rates unchanged, India Inc today said there is an urgent need for rate cut to boost industrial growth and take economy to a higher trajectory.
Pitching for cut in interest rates by the RBI in its forthcoming monetary review, the finance ministry today said low interest rate regime would push growth rate, which slipped to nine-year low of 6.5% in 2011-12.
India's wholesale price inflation rate likely slowed marginally in March as easing price pressures from non-food items offset persistently high food and fuel costs, a Reuters poll showed.