New Delhi: Impact of budget on inflation is yet to be seen but with the rise in prices of protein based food products inflation has already started rising. According to government’s statistics retail based inflation recorded at 8.83 percent in February 2012. It was at 7.65 percent a month back. (JPN/Bureau)
Retail-based inflation data have been releasing since January 2012. It is considered that policy making decision should be done by taking retail-based inflation data into account. It is being said that RBI did not cut interest rates in January 2012 just on the basis of inflation data based on retail prices. However with it going close to 9 percent it is clear that cutting interest rate will be difficult in future.
According to experts, impact of hike in excise and customs duty in the budget will be seen on inflation figures released in May 2012. Whereas, the Finance Minister Pranab Mukherjee has repeated that inflation will stabilise in next two months. "Couple of months there will be fluctuations (in inflation) ... So I do hope that after couple of months it will stabilise," he told reporters after chairing the RBI's Central Board Meeting here. Mukherjee, however, added that inflation will not come down drastically to 4-4.5 percent. "It would be around 6.5 percent to 7 percent for the year as a whole, he said. Talking on interst rates he said that when RBI governor thinks it is the right time then he will be taking decision on it.
It is being considered that interest rates are being discussed in detail in the meeting. India Inc is also eyeing Annual monetary policy to be presented in April 2012. But RBI’s decision would be centered on prices of protein based products. Statistics of February 2012 states that prices of egg, fish and meat has witnessed a rise of 10.62 percent whereas retail prices of milk and other dairy products witnessed a rise of 15.76 percent. Edible oil prices have gone up by 12.76 percent.
New Delhi: Impact of budget on inflation is yet to be seen but with the rise in prices of protein based food products inflation has already started rising. According to government’s statistics retail based inflation recorded at 8.83 percent in February 2012. It was at 7.65 percent a month back.