Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2012        Go!    
 
 
July 28, Friday 2017 12:06 PM       

       HEADLINES: Man held for trying to sell deer musk                                              P T Usha to boycott Malayalam visual media                                              K R Narayanan's cemetery turns controversial                                              Amit Shah to contest Rajya Sabha polls from Guj                                              Modi congratulates Nitish after resignation                                              Nitish Kumar back to NDA fold, to take oath as Bihar CM tomorrow                                              Nitish Kumar is new Bihar CM, Sushil Modi his deputy                                              Lalu dubs Nitish an 'opportunist'                                              White House says Trump supports sanctions on Russia                                              Sri Lanka labour to 154 for 5 after India fold for 600                                              Kaumudi Facebook
       BUSINESS Next Article: Nifty regains 9,200-level in early trade  
       Inflation cools to 5.7%, food prices heat up
 
         Posted on :13:20:34 Apr 18, 2017
   
A A
       Last edited on:13:20:34 Apr 18, 2017
         Tags: Inflation cools to 5.7%, food prices heat up
 

NEW DELHI: Inflation at the wholesale level eased to 5.7 per cent in March on declining fuel prices and appreciating rupee even as food prices hardened.

Based on the Wholesale Price Index (WPI), inflation was at 6.55 per cent in February.

In March last year, it was at (-)0.45 per cent.

According to the official data released on Tuesday, food prices saw a sharp rise of 3.12 per cent last month compared to 2.69 per cent in February.

This was primarily because of a big jump in vegetable prices where inflation stood at 5.70 per cent. As for fruits, the figure was also high at 7.62 per cent, while for eggs, meat and fish, it was 3.12 per cent.

Fuel inflation declined to 18.16 per cent, from 21.02 per cent in February.

Manufactured items witnessed some softening in the rate of price rise, with inflation at 2.99 per cent in March, as against 3.66 per cent in the previous month.

Experts said while the rupee has been on an appreciating trend against the US dollar since February, cut in fuel prices in March pushed down fuel and manufactured product prices.

A stronger rupee lowers import costs and cuts down the cost of manufacturing.

International oil prices dipped in a month's time to USD 49 per barrel from USD 55, reflecting in Rs. 3.77 per litre cut in petrol price and Rs. 2.91 in diesel. Rates have since climbed to USD 54 per barrel.

The rupee which was at 66.7 to a dollar in February end strengthened to 64.85 to a dollar.

"We believe there is an upside risk to the inflation with the increasing global commodity prices and expectation of possible below-normal monsoons. Food prices could see a moderation in the coming months with the Rabi harvest coming into the markets," CARE Ratings said in a statement.

ICRA, however, projected food inflation to inch up in April, led by perishables, in line with rising temperatures.

Going forward, monsoon dynamics would dictate the trend in food inflation, particularly for kharif crops, it said.

"The continued appreciation of the INR relative to the USD may weaken the trend of resetting of prices at the beginning of the fiscal year, further dampening core inflation in April 2017," ICRA Principal Economist Aditi Nayar said.

"A likely reversal of the INR movement in subsequent months, as well as prices changes related to the introduction of GST, would crucially affect the trend for core inflation," she added.

Inflation for January was revised upwards to 5.53 per cent from the provisional estimate of 5.25 per cent.

Earlier this month, the Reserve Bank had left key policy rate unchanged at 6.25 per cent for the third review in a row citing upside risks to inflation. It had, however, increased the reverse repo rate -- which it pays to banks for parking funds with it -- by 0.25 per cent to 6 per cent, narrowing the policy rate corridor.

For 2017-18, RBI projected retail inflation to average 4.5 per cent in the first half and 5 per cent in the second half.

The data released last week showed that retail inflation, based on Consumer Price Index (CPI), touched five-month high of 3.81 per cent in March on costlier food items and non-food products like fuel and light.

RBI frames its monetary policy on the basis of retail inflation.

A A
       BUSINESS
Next Article: Nifty regains 9,200-level in early trade
 
 
BUSINESS HEADLINES
HarperCollins launches business imprint  
Indian banks most at risk among South, S-E Asian peers: Poll  
Rupee surges 21p against dollar after no rate hike by US Fed  
RBI to cut repo rate by 25 bps on Aug 2: HSBC  
China accuses India of 'abusing' trade remedy measures  
Sensex rises 50 pts in early trade on earnings  
'India will emerge as one of biggest markets for IT services  
Nifty tops 10,000 for a moment, Sensex slips from record  
Why has RBI not yet given no. of scrapped notes, asks Oppn  
Rupee softens 5 paise against dollar  
Nifty surpasses 10,000 mark, Sensex up by 102 points in opening trade  
Need examples to deter benami deals, says Jaitley  
Jaitley introduces bill to replace Banking Regulation Ordinance in Lok Sabha  
40% of India's GDP outside GST: Chidambaram  
DeMo, GST to widen tax base, make cash dealing difficult: FM  
Pak may face economic instability if reforms stop: IMF  
UN selects Dubai as data hub for MENASA region  
Nifty ends above 9,900, RIL leads  
Sensex's early rise hits a bump, IT weighs  
Australia to help Sri Lanka combat its worst dengue fever  
Niti panel yet to finalise report on autonomous bodies: Govt  
GST win-win deal for all: Jaitley  
Rupee rallies for 3rd session, hits near 6-week high  
NSSO to conduct survey on drinking water in July 2018  
Cabinet clears draft bill to replace GST ordinances for J&K  
 
P U Chithra issue: Is it fair to blame P T Usha?
yes
 
no
 
don't know
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy