AS the Mid Term R.B.I review of the Monitory policy is due to be declared tomorrow. The Press Statement is set to be released, from 12 hours.
Transmission of the Inflation and its sticking it.
Barely, in this period, State owned Oil Marketing Companies have raised the Petrol Prices by about Rs 3/ across the India, while Diesel Prices remaining untouched and Cooking gas Cylinders are being revised. In another significant move the utility companies are expected to ' Raise ' the tariffs and Railways are expected to raise fares and frights. The weekly inflation index rose by 9.47 % and Vegetables/ fruit prices firm and all other stub burn.
The Sudden fall in Asian Currencies and in Rupee has added to the woes of the Importers and made the Oil little more dear.
The Trajectory of Inflation :
As the inflation transmission is in progress and the regular shouts of Inflation to come down in March 2012 are on the rooftop. But, will Inflation which was in 14 % in March 2011 be again allowed to grow by another 7 % till March 2012?
And, will it sustain the economy and Growth.? Will the ' local demand' will Sustain..?
It can be reasonably expected that, diesel prices will be raised, post Divali Festivities, if Oil remains where it is today. The Rise in 7% Dearness Allowance of the Central Government employees will still abet the demand on one hand and put pressure on the strained exchequer. While, the Minimum Support Prices to farm products and ' Food Bill' are still the pressure the inflation curve. More over, any strength to Hence, apart from the no crunching exercise the inflation still remains the ' Enemy no 1' for R.B.I.
R.B.I. Mid term Monitory policy:
R.B. I , reasonably expected to add to measured step of 1/4th percentile to the Interest rate and any ' engagement in Hawkish Talking' and indication of further revival of higher rate bias well be the capturing the throat of Inflation.
Transmission of the Inflation and its sticking it.
Barely, in this period, State owned Oil Marketing Companies have raised the Petrol Prices by about Rs 3/ across the India, while Diesel Prices remaining untouched and Cooking gas Cylinders are being revised. In another significant move the utility companies are expected to ' Raise ' the tariffs and Railways are expected to raise fares and frights. The weekly inflation index rose by 9.47 % and Vegetables/ fruit prices firm and all other stub burn.
The Sudden fall in Asian Currencies and in Rupee has added to the woes of the Importers and made the Oil little more dear.
The Trajectory of Inflation :
As the inflation transmission is in progress and the regular shouts of Inflation to come down in March 2012 are on the rooftop. But, will Inflation which was in 14 % in March 2011 be again allowed to grow by another 7 % till March 2012?
And, will it sustain the economy and Growth.? Will the ' local demand' will Sustain..?
It can be reasonably expected that, diesel prices will be raised, post Divali Festivities, if Oil remains where it is today. The Rise in 7% Dearness Allowance of the Central Government employees will still abet the demand on one hand and put pressure on the strained exchequer. While, the Minimum Support Prices to farm products and ' Food Bill' are still the pressure the inflation curve. More over, any strength to Hence, apart from the no crunching exercise the inflation still remains the ' Enemy no 1' for R.B.I.
R.B.I. Mid term Monitory policy:
R.B. I , reasonably expected to add to measured step of 1/4th percentile to the Interest rate and any ' engagement in Hawkish Talking' and indication of further revival of higher rate bias well be the capturing the throat of Inflation.
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