Centre and the Reserve Bank of India will have to work in tandem to control prices without destabilising growth. Analyse (200 Words)
Refer - Business Line
Enrich the answer from other sources, if the question demands.
IAS Parliament 2 years
KEY POINTS
· The optimism about moderation in consumer inflation, fuelled by the decline in CPI inflation in July to 6.7 per cent, has been doused by a higher-than-expected reading of 7 per cent for August.
· The increase in August was led by food inflation, which shot up to 7.6 per cent in August from 6.7 per cent in July.
· While inflation may not increase too much from current levels, it is likely to remain elevated, and above the Reserve Bank of India’s comfort zone in the coming months.
· Prices of cereals and pulses have cooled slightly in recent weeks while edible oil prices are down quite sharply over the past few months.
· Inflation in fuel and lighting is also unlikely to spike too much in the coming months since pressure on global crude oil prices are evenly balanced.
· Core inflation is however likely to be sticky due to private consumption reviving with reopening of the economy and producers continuing to hike prices gradually.
· The turnaround in foreign portfolio flows into equity as well as debt in August offers some leeway to the central bank in monetary tightening.
· Both the Centre and the RBI will have to join hands and work in tandem to control prices without destabilising growth.
PANDI SANTHOSH RAJA S 2 years
Kindly review
IAS Parliament 2 years
Good attempt. Keep Writing.
Tapasvi 2 years
Kindly review
IAS Parliament 2 years
Good attempt. Keep Writing.
K. V. A 2 years
Pls review
IAS Parliament 2 years
Good attempt. Keep Writing.
