Posts Tagged ‘annual inflation rate’

Vegetable Prices to Ease by January : Planning Commission

Hello Friends here we come up with the Latest Major Agri-Commodities updates from various parts of the country.

Vegetable Prices to Ease by January : Planning Commission

Vegetable Prices to Ease by January : Planning Commission

Planning Commission Deputy Chairperson Montek Singh Ahluwalia Sunday said he expected vegetable prices to ease by January.

“At the end of a bad monsoon, the big pressure is on vegetables.

The annual inflation rate for food articles was sharply higher at 13.39 percent for the week under review.

Similarly, the annual rise in the index for pulses was 23.44 percent and that for cereals was 11.15 percent.

He also said that “By December-January, you will see at least something (fall in prices) for vegetables, there will be a different position,” Ahluwalia added.

“It (vegetable) is not something you can import, but in general, certainly in management of public distribution system, we are in a strong position as far as stocks are concerned,” he contended.

“There is more than enough food stock in the country. We do not have to worry on that score.”

The Reserve Bank of India and the government have both warned that India’s annual rate of inflation based on wholesale price index for all commodities would rise to 6-6.5 percent by March, while the Prime Minister’s Economic Advisory Council has pegged it at 6 percent.

🙂

In Other major Commodities Updates we can see that NMCE has kick started trading in gold guinea contract. 🙂

NMCE kicks starts trading in gold guinea contract:

National Multi Commodity Exchange of India (NMCE), the first commodity exchange of the country, has started trading in gold guinea contract to reach to the masses.

The commex has tied-up with Muthoot Group to set up multiple delivery centres.

The guinea would be a Muthoot branded BIS certified serially numbered,available in a tamper proof packing.

The purchase/delivery of the gold guinea will be made available through the Muthoot Finance’s 22 centers across the country, which include Ahmedabad, Kolkata, Jaipur, Mumbai, Indore, Delhi, Rajkot, Kanpur, Lucknow in the North and Trivandrum, Kollam, Kottayam, Calicut, Chennai, Coimbatore, Madurai, Truichi, Bangalore, Mangalore, Hyderabad, Trichur.

🙂

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Inflation at -1.61%; what it means for India?

Inflation at -1.61%; what it means for India

Inflation at -1.61%; what it means for India

India’s wholesale price index for week ended June 6 stood at -1.61% in the 12 months to June 6 as compared to the previous week”s annual rise of 0.13 percent. Inflation has fell to negative for the first time since 1977-78.

Inflation in India turned negative 1.61 for the first time in 32 years but the prices of food items like fruit and vegetables, cereals and oil were still higher than last year.

The annual inflation rate was 11.66 percent during the corresponding week of the previous year.

India possibly is the only major economy moving into a deflationary zone though the European region is near zero level due to recessionary pressures.

The stock markets immediately welcomed the development and jumped by about 200 points as analysts expect this to help ease the monetary policy restrictions and pave the way for cut in banks’ lending rates.

However, food articles were costlier by 8.7 per cent from the comparable week last year!

India would most perhaps see deflation or reduction in general price level from next month due to slackening demand.

Period of deflation may begin in April, which could last till end-2009 due to not only continuing demand destruction but also a sharp step-up in the base.

Deflation would be surely a hinder to a strong economy like India than inflation. 😦


Note : Low inflation does not mean that prices will remain low.

It means that prices are rising at a slower pace than before. Negative inflation can also be termed as deflation.

Deflation is a fall in the price of goods and services. When the inflation rate is negative, the economy is in said to be in a deflationary period.

This is when there is less money (supply of money) chasing the same amount of goods and services, leading to the increase in the value of the money.

The decline in the supply of money and credit thus leads to deflation.

For more info on Deflation, Refer SMC Gyan Section or click Here