An announcement on the reduction of fuel prices will be made within a week in the wake of the decline in global crude prices, Petroleum Minister Murli Deora told the Lok Sabha Thursday.
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As per statistics released by the commerce and industry ministry Thursday, the drop in the index was caused by several factors, including a fall in the prices of fruits and vegetables, eggs and bajra, a coarse cereal.
The inflation figures were released in the first half of the day, as against the normal practice of making the data public on Thursday evening, even as the stock markets tumbled by over 700 points by mid-day today.
Asia's high inflation problem is due to lax monetary policy rather than soaring food and energy prices, and the threat of "lasting damage" is real, the Asian Development Bank (ADB) warns.
Oil Minister Murli Deora says petrol and diesel prices would not be cut till crude oil prices falls to $67 a barrel. This is because the depreciation in the rupee against the US dollar has eroded gains from falling oil prices, which touched a 7-month low.
Former chairman of the prime minister’s economic advisory council, C Rangarajan, says that the inflation is likely to come down to 10 per cent by December this year.
Petroleum Minister Murli Deora today said there are no plans to cut fuel prices in immediate future, while terming the fall in global crude prices to the lowest in six months as a "welcome" change.
Ruling out any price band, the government on Friday said domestic steel prices should come down following the softening global trend.
Realising the importance of the international commodity market, the government has recently set up a cell under the department of consumer affairs to monitor developments relating to prices and general inflationary trends in the international markets
India's inflation rate will come down to single digit by the end of this fiscal if oil prices keep softening in the international markets, says a top adviser in the finance ministry
"Subbarao, as secretary in the finance ministry, had been supportive of the monthly release of inflation data. Now that he is the RBI governor, the central bank is expected to agree," a senior official said
This is the second successive week that the inflation rate has come down after weeks of increasing continuously
Given the fact that credit accounts for 10-20 per cent sales in the consumer durables segment, companies like LG and Samsung have registered a 10 to 30% decline in sales of finance-linked products after banks and finance companies reduced their lending, fearing a sharp rise in defaults
Inflation is likely to touch 13.5 per cent in November and the Reserve Bank may be forced to raise short-term lending rates and statuary deposits of the banks with the Central bank by 25 basis points each by next month, said global investment banker Goldman Sachs.
State-run firms are still running daily losses of over Rs 400 crore (Rs 4 billion) despite the softening of international oil prices, says the minister
"Inflation will begin softening within a few months' time. The prices of crude oil appear to be softening in the global market. A good monsoon will make a big difference," said Ahluwalia
RBI today warned that inflation was way beyond the tolerable limit and hinted at stringent policy measures to keep price rise under check. The immediate challenge is to bring down inflation to a tolerable level as soon as possible and maintain financial stability, the apex bank said, adding that eight per cent growth this year is realistic
WPI shows a decline in the index for non-food articles, mineral, fuel, power, light and lubricants, and non-metallic mineral products
The plan panel deputy chief’s optimism is in stark contrast to the concern of the finance ministry, which says inflation was a ‘matter of concern’ and a ‘major disappointment’
Mukesh Ambani — possibly the highest-paid business chief in India with an annual package of over Rs 44 crore — got a hike of about 45 per cent over the past fiscal
According to a survey by HR consultancy major Hewitt Associates, the IT sector will see the lowest pay hike of 11.3 per cent in India next year, down from 12.5 per cent in 2008
The growth in advance tax payments by corporates during the June quarter reflect that the fears of economic slowdown are unfounded, according to a finance ministry statement. Advance tax payments grew by 24.1 per cent during the quarter.
Prices of essential commodities, which include food grains, pulses, edible oils, vegetables, dairy products and some other products, including kerosene, soap and safety matches, have more or less stabilised. Planning Commission Deputy Chairman Montek Singh Ahluwalia says the problem of inflation is short term and will moderate in due course
The proposal aims at strengthening non-formal PDS through market intervention by state civil supplies’ corporations and consumers’ marketing federations
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