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Submitted by rkm on Wed, 07/02/2008 - 22:25.
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Inflation
in India breached the 11 per cent mark , the highest in 14-odd years,
despite the growth rate tweaking to 9 per cent. This comes close on the
heels of rising fuel and food prices. Prime Minister Manmohan Singh and
Finance Minister P Chidambaram continue to assure the people that they
can rein in inflation. That Chidambaram's assurance is couched over his
worry can be seen when he says "double digit inflation would be there
for some more weeks and the Government as well as RBI would not
hesitate to take more steps to rein in soaring prices, if need arises.”
It is confusion worse confounded for the common man when he hears the
government announcing the fuel price hike, in addition to the rising
cost of essential commodities.
Full Coverage
While
operations in corporate entities and BPOs largely remained unaffected,
common man could feel the heat of fuel crunch in Chennai. The crisis
hopes to abate as fresh supplies are expected to reach Chennai on
Wednesday
Government
says 60 per cent of increase in inflation in the primary articles
category was contributed by iron ore, cotton, milk, sea fish and oranges
The
market declines three days in a row due to record high oil prices,
surging inflation, rising interest rates and political uncertainty
Public
sector players Bank of India, Dena Bank, Allahabad Bank and Vijaya Bank
also announced an increase in their prime lending rates (PLR). The four
public sector players said they would raise the PLR by 25-50 basis
points.
ICICI,
HDFC hike deposit, lending rates Allahabad Bank has also decided to
hike simultaneously the term deposit interest rates of various
maturities
The new record comes as the heads of oil majors to discuss rocketing prices at the World Petroleum Congress in Madrid
Dealers
say high crude oil prices hurt the rupee sentiment as oil corporates
rushed to buy dollar for their monthly import payments
"You will see the inflation coming down in some months,'' Montek Singh said without saying to what level it would drop.
Inflation may hover to 13% before settling down at 8-8.5 percent by end of current financial year.
Wednesday's hike was the single largest repo rate dose since 2004. The move is expected to moderate growth, say experts.
The bank also increased interest rates on housing loans and auto loan by 50 basis points
India's
annual rate of inflation shot up to a 14-year high of 11.42 percent for
the week ended June 14 - against the 11.05 percent the week before -
due to higher prices of primary articles.
Finance Minister P Chidambaram says the Government and RBI would not hesitate to take more steps to rein in soaring prices.
The
revised rates shall apply to all PLR-related lending and will restore
the benchmark rate to the rate prevailing in January this year
A
survey by consultancy firm AC Nielsen shows the Indian consumer
confidence index down 13 points to 122, but it’s still the second
highest in the world. Norway tops the list at 129.
The
decisions had been taken on the basis of incoming information on
domestic and global macroeconomic and financial developments, the bank
statement said.
The
Planning Commission Deputy Chairman feels that, with added efforts,
India can maintain the growth rate despite soaring prices of oil in the
international market
The
Benazir card is expected to provide direct subsidy to five to seven
million poor people and cover about 20 per cent of Pakistan's population
The
government remained preoccupied on other things and started taking
steps after price rise and inflation reached its peak, says Yashwant
Sinha
Expressing
concern at "the relentless rise" of crude oil, commodity and food
prices, Finance Minister P Chidambaram put partial blame for the rising
food prices on the "foolish" diversion of food to fuel. But he did not
name the US, where food crops like corn are used for making ethanol.
Inflation
is expected to come down to 5.5 per cent in financial year 2008-09 and
kharif crop is likely to play a major role in this regard, says the
Centre for Monitoring Indian Economy (CMIE).
Finance
Minister P. Chidambaram has said that the only way to check the
sky-rocketing prices and the resulting inflation is for both producers
and consumers to find common ground and that a price band mechanism
would instill mutual confidence.
Notwithstanding
the skyrocketing inflation, executives from the fast growing economies
of India and China are more optimistic than their Asian and European
counterparts in believing that the price rise would slow down in the
next six months, a latest survey says.
http://news.in.msn.com/specials/Inflation.aspx
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