A good news for the nation as the Inflation rates |
A good sign for the economy as the Inflation rates, both wholesale and retail, fell in December last year, according to the government data released on Monday. This, in turn, might prompt the Reserve Bank of India Monetary Policy Committee to change its stance from strict to little relaxed in its review next month. The retail inflation rate declined to an 18-month low of 2.19 per cent. The wholesale inflation rate also came down to 3.8 per cent, the lowest in eight months. According to the experts the falling fuel and food prices caused inflation to fall. According to some experts the RBI could even lower policy rates to boost slower-than-expected economic growth. In the monetary policy statement, the RBI had forecast the retail inflation rate to be between 2.7 per cent and 3.2 per cent in the second half of FY19. Food prices were dragged down by a decline in prices of pulses and vegetables, sugar and eggs. The pulses and products index has been contracting since December 2016, while vegetables have been contracting since July 2018. At the aggregate level, the consumer food and beverages index has now contracted for three straight months.
|
|
|
|