The post Union government builds record of reserving 2,00,000 tonne of onions appeared first on The Edge Media.
]]>Prices of some food items, where seasonality plays a big role, tend to be volatile. Onion is one of them. Its rates often stoke food inflation and knock the monthly budgets of consumers, poor or rich, because the vegetable is a base ingredient of most Indian dishes.
Past data shows onion prices usually tend to rise during September because the month marks the beginning of a nearly three-month lean season, when stocks from previous crops deplete. Fresh harvests usually arrive in markets during winter.
Retail prices, as measured by the Consumer Price Index, rose 6.25% in June, slightly lower than a 6.3% rise in May, but driven by higher food and fuel costs, latest official data show. The retail inflation rate is above the Reserve Bank’s target of 4% (+/-2). Inflation in the food and beverages category stood at 5.58%, compared to 5.24% in May.
Price rise is a key determinant of monetary policies. Moderate inflation helps the Reserve Bank to keep interest rates low to spur economic activity, which has been hit by the pandemic.
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]]>The post PM Modi should keep fiscal deficit worry on the backburner for covid : Adviser. appeared first on The Edge Media.
]]>“If you have to spend money because you have to save both lives and livelihoods then that’s what you have to do, “ Rajiv kumar, vice chairman of the federal government ‘s think-tank Niti Aayog, said in an interview. “Issues about fiscal space could be on the backburner.”
The International Monetary Fund too is of the view that nations should continue to spend to support health-care systems and households until Covid-19 spread is controlled globally and the economic recovery strengthens.
Excessive borrowing could fuel inflation and crowd out private investment. At least one of those concerns is overdone, according to Mr. Kumar.
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]]>The post India’s retail inflation marginally rose, shows report appeared first on The Edge Media.
]]>Inflation based on the Consumer Price Index (CPI) remained above the Reserve Bank of India’s comfort level for the second month in a row. RBI has been mandated by the government to keep retail inflation at 4 per cent with a margin of 2 per cent on either side.
Economists also said that Monday’s June inflation print was above the upper range of the central bank’s 2-6% target, but that price pressures appeared to be easing.
The softer-than-expected inflation comes as a relief in an environment when the continuing accommodative stance remains a necessity to revive growth,” news agency Reuters quoted Upasna Bhardwaj, economist at Kotak Mahindra Bank, Mumbai, as saying.
“We expect the MPC (Monetary Policy Committee) to draw comfort from relatively stable (inflation),” Bhardwaj also said as per Reuters.
Group chief economist Rupa Rega Nitsure of L&T Finance Holdings, said that there “was no surprise in this data.” “The Reserve Bank of India (RBI) too has made its approach and stance clear in the coming months,” she added as Reuters report.
She also said that markets may suffer from temporary nervousness but “it will not sustain for long. Gradual revival in economic activity and liquidity assurance will restore the balance,” as per Reuters report.
High fuel prices and rising input costs for companies are likely to keep inflation elevated for some time, economists also said.
(With inputs from agencies)
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