New Delhi: Overall inflationary pressure in India seems to be easing in the wake of the government taking pre-emptive administrative measures, agile initiatives. Monetary policyand easing of international commodity prices and supply-chain bottlenecks, a finance ministry official said. report good Said on Saturday.
“At a time when slow growth and high inflation are affecting most of the world’s major economies, India’s growth has remained strong and inflation is under control,” said the Finance Ministry’s monthly economic report for August. As external pressure eases, inflationary pressures in India are also likely to ease, highlighting a number of indicators that are showing a moderate trend.
Prices of industrial metals and edible oil, after reaching their peak in March 2022, have softened on fears of a slowdown in advanced economies. Since its peak in June 2022, crude oil prices have fallen by 19.1% till August. Supply chains are being restored as port congestion eases.
The impact of the fall in the Consumer Price Index (CPI-C) is already visible, the report said. bulk Price Index (WPI) inflation from April 2022. CPI inflation fell to 7% in April from 7.8% in August, while WPI inflation declined to 12.4 percent in August from 15.4 percent in April.
The latest data shows retail inflation accelerated in August on the back of higher food prices, reversing a two-month downward trend, and remained above the Reserve Bank of India’s upper tolerance level of 6% for the eighth consecutive month, which the central bank said. may indicate. To raise interest rates again.
The report said downside risks to growth will remain as India integrates with the rest of the world and called for a close watch on prices. According to the report, “Nor is there any room for complacency on the inflation front as stock of agricultural commodities for sowing of low crops for the kharif season and efficient management of market prices put agricultural exports at risk without any risk.” Does matter.” It asked for all hawkish central bank rhetoric, that the balance sheet US Federal Reserve The contract has not started yet.
The report said that India’s imports are growing rapidly and therefore, financing them comfortably has to be given high priority. In the winter months, the international focus on energy security in advanced countries could escalate geopolitical tensions, which could test India’s shrewdness in handling energy needs so far.
“In these uncertain times, it may not be possible to be content and sit back for long. Eternal macroeconomic vigilance is the price of stability and sustained growth,” the report said. Despite the challenges, the report said India has a lot going for it, especially compared to other countries as its government has sought expert advice for uninterrupted financial and monetary expansion during the pandemic years of 2020 and 2021. chose not to pay attention.
“Prudential fiscal management and credible monetary policy will remain essential for India to meet its growth aspirations. Both these pillars of public policy will be able to reduce benchmark borrowing costs for the government and the private sector, thereby facilitating capital formation by the public and private sector.
“At a time when slow growth and high inflation are affecting most of the world’s major economies, India’s growth has remained strong and inflation is under control,” said the Finance Ministry’s monthly economic report for August. As external pressure eases, inflationary pressures in India are also likely to ease, highlighting a number of indicators that are showing a moderate trend.
Prices of industrial metals and edible oil, after reaching their peak in March 2022, have softened on fears of a slowdown in advanced economies. Since its peak in June 2022, crude oil prices have fallen by 19.1% till August. Supply chains are being restored as port congestion eases.
The impact of the fall in the Consumer Price Index (CPI-C) is already visible, the report said. bulk Price Index (WPI) inflation from April 2022. CPI inflation fell to 7% in April from 7.8% in August, while WPI inflation declined to 12.4 percent in August from 15.4 percent in April.
The latest data shows retail inflation accelerated in August on the back of higher food prices, reversing a two-month downward trend, and remained above the Reserve Bank of India’s upper tolerance level of 6% for the eighth consecutive month, which the central bank said. may indicate. To raise interest rates again.
The report said downside risks to growth will remain as India integrates with the rest of the world and called for a close watch on prices. According to the report, “Nor is there any room for complacency on the inflation front as stock of agricultural commodities for sowing of low crops for the kharif season and efficient management of market prices put agricultural exports at risk without any risk.” Does matter.” It asked for all hawkish central bank rhetoric, that the balance sheet US Federal Reserve The contract has not started yet.
The report said that India’s imports are growing rapidly and therefore, financing them comfortably has to be given high priority. In the winter months, the international focus on energy security in advanced countries could escalate geopolitical tensions, which could test India’s shrewdness in handling energy needs so far.
“In these uncertain times, it may not be possible to be content and sit back for long. Eternal macroeconomic vigilance is the price of stability and sustained growth,” the report said. Despite the challenges, the report said India has a lot going for it, especially compared to other countries as its government has sought expert advice for uninterrupted financial and monetary expansion during the pandemic years of 2020 and 2021. chose not to pay attention.
“Prudential fiscal management and credible monetary policy will remain essential for India to meet its growth aspirations. Both these pillars of public policy will be able to reduce benchmark borrowing costs for the government and the private sector, thereby facilitating capital formation by the public and private sector.