India’s retail inflation rose to 4.91 per cent in November, according to a report released by the central government. Retail inflation, as measured by the Consumer Price Index (CPI), rose to 4.91 per cent in October from 4.48 per cent in the previous month.
Vegetables and food products
Shortages of vegetables and food items due to rains and floods have pushed up petrol and diesel prices in India, leaving them unchanged.
Reserve Bank target
As a result, inflation in fruits and vegetables increased and retail inflation rose to a higher level in November than in October. At a recent RBI monetary policy meeting, it was announced that retail inflation should be kept at 4 per cent and may be more or less 2 per cent.
Reserve Bank
It is noteworthy that retail inflation has remained at the level set by the Reserve Bank for the last 5 quarters. Also, the Reserve Bank of India (RBI) announced in its monetary policy meeting that the RBI Governor Shaktikant Das had announced the old measure without changing anything like interest rates and inflation measures in the wake of the new Omigron virus.
Retail inflation
India’s retail inflation is forecast at 5.1 per cent in the third quarter of the current fiscal and 5.7 per cent in the fourth quarter. Crude oil prices fell 16 percent to $ 76 a barrel in November. This is also the most important reason why retail inflation is within the Reserve Bank target.
GDP forecasts
The Reserve Bank of India (RBI) has forecast growth of 6.6 per cent in the third quarter of the current fiscal, 6.4 per cent in the fourth quarter, 17.2 per cent in the first quarter of 2024 and 7.8 per cent in the second quarter. The Reserve Bank of India (RBI) had forecast 6.6 per cent growth in the third quarter of the current fiscal.
Shakti Kantha Das enters the second chapter .. What are the challenges waiting ..!
Shakti Kantha Das, who was the Governor of the Reserve Bank of India, has extended his tenure for the second three years from December 11, ending his term on December 10.
With the second term being extended, inflation is currently at its worst.
Overcoming this is expected to be a major challenge for the central bank.
The economy is in a bad slump
Das, however, has been instrumental in curbing inflation over the past year despite the impact of the corona. And the economy has plunged to an all-time low last year. Factors of economic growth also came to a complete standstill due to the entire lockdown across the country.
Various schemes to stimulate the economy
At that time he worked effectively in many ways such as reducing interest rates, monthly installments, debt restructuring, various types of loan assistance, especially to recover the industry, depending on the circumstances of the people. Until now, the group led by Shakti Kantha Das has kept the repo rate unchanged.
Shakti Kantha Das in the second chapter
One such governor has just begun his second term for the next three years, starting today. However, many challenges await him now. Amid growing Omigron fears, inflation is currently the biggest challenge.
Opposition in the group
Over the past few months, the RBI panel has decided to keep the repo interest rate unchanged at central bank meetings to sustain growth and increase liquidity.
But this time around, Jayant R Verma, who is in Shaktakanta Das’s board, is said to be uninterested in keeping interest rates unchanged against the Reserve Bank’s stance on boosting long-term growth.
What is he going to do next?
So is keeping interest rates the same in order to improve the economy? There are many challenges as to what he is going to do to curb inflation. Let’s see what he is going to do.
