Inflation dips to 3.36%, at 15-month low February 26, 2009
Posted by dhirendra1972 in Ease Money Supply, Increase, Price Fall, Public Spending, Raising Hopes.Tags: 15-month low, Coconut Oil, Economy, Fruits, Government's Borrowing Program, Infaltion, Interim Budget, Key Policy Rate, Maize, Money Supply, Mustard Oil, Overall Credit, Public Spending, Pulses, Sooji, Vegetables, Wholesale Price
1 comment so far
Good morning friends. I read about this inflation. Everybody is experiencing it. High class, middle class, low class, everybody no exceptional. But we all wish for the improvement in the future.
Inflation declined to about a 15-month low of 3.36 per cent mainly due to fall in the prices food articles like fruit and vegetables, pulses, and some manufactured items, raising hopes of cuts in the key policy rates by the RBI.
Wholesale price based inflation declined by 0.56 percentage points during the week ended February 14 against 3.92 per cent in the previous week.
The Government expressed confidence that the RBI may ease money supply.
Replying to the debate on the interim Budget in the Rajya Sabha, Finance Minister Pranab Mukherjee said, that he is fully concerned that increased public spending may put pressure on the government’s borrowing programme and overall credit offtake in the economy.” He also said that “There is, the scope for appropriate compensatory monetary policy options, (which) he’s sure will be exercised by the RBI at the right time.”
Prices of food articles like maize fell by five per cent, barley by three per cent, and fruit and vegetables by two per cent while eggs and spices declined by one per cent each. Among manufactured products, prices of mustard Oil eased by two per cent, and sooji and coconut oil by one per cent each. At the same time aluminum ingots got cheaper by 6 per cent, and liquid chlorine by three per cent.
Reference: indianexpress
