Source– The post is based on the article “How food inflation can be managed keeping El Nino in mind” published in “The Indian Express” on 17th April 2023. Syllabus: GS3- Economy Relevance– Inflation related issues News– Reserve Bank of India Monetary Policy Committee (MPC) paused the raising repo rates in its last meeting. RBI is… Continue reading How food inflation can be managed keeping El Nino in mind
Tag: Inflation
Corporate power and Indian inflation
Source- The post is based on the article “Corporate power and Indian inflation” published in “The Hindu” on 13th April 2023. Syllabus: GS3- India economy Relevance– Issues related to inflation News– The former Deputy Governor of the Reserve Bank of India, Viral Acharya, is reported to have observed that unlike in the West where it… Continue reading Corporate power and Indian inflation
A flawed calculation of inflation
Synopsis: The current official inflation rate does not correctly measure price rise and it needs modification. Contents1 Introduction2 Does the official data capture the real picture?3 Why inflation is a cause of worry?4 What are the factors contributing to inflation? Introduction Inflation for the last four months has been worryingly high. Wholesale price index (WPI)… Continue reading A flawed calculation of inflation
Transient easing: On inflation
Synopsis: Cutting fuel taxes is a sure-shot way to address a major component of price pressures. Introduction The latest retail inflation data suggest, that price pressures have begun to moderate in the economy, with CPI showing inflation having slowed for a second month to 5.3%, after July’s 5.59%. However, price trends among the constituents of… Continue reading Transient easing: On inflation
If inflation remains elevated, Monetary Policy Committee could lose credibility. This must be avoided
Contents1 What is the news?2 What does the recent GDP data indicate?3 What concerns are being raised wrt RBI’s current policy?4 What is RBI’s view on policy normalisation? What is the news? RBI Governor has expressed optimism over the state of the economy. Speaking at an event organized by The Indian Express and the Financial… Continue reading If inflation remains elevated, Monetary Policy Committee could lose credibility. This must be avoided
Why Palm won’t fix India’s edible oil woes
Synopsis: India should focus on improving indigenous edible oil production rather than focusing on palm oil, that has many problems. Contents1 What are the problems associated with oil palm crop?2 What are the reasons for the recent increase in Palm oil price?3 How the government responded to increasing Prices in Pal oil?4 What are the… Continue reading Why Palm won’t fix India’s edible oil woes
A cycle of low growth, higher inflation
Source: The Hindu Synopsis: Unless policy action ensures higher demand and growth, India will continue on the path of a K-shaped recovery Background Some economists are of the opinion that the Government should not intervene with the economy and that it will revive by itself. These economists’ reason that, like after the Great Depression, the… Continue reading A cycle of low growth, higher inflation
Behest lending can give rise to a NPA problem
Source: Livemint Relevance: A lesson from the 2008 global financial crisis that can help India tackle post-pandemic situation better Synopsis: Aggressive lending to MSME sector can result in a NPA problem in the future. Contents1 Background2 Present situation – impending problems3 Impact of lending to MSMEs4 Shortcomings of credit schemes Background Response to 2008 financial… Continue reading Behest lending can give rise to a NPA problem
Oil on the boil
Source: Business Standard Relevance: Understanding how global crude oil prices impact India Synopsis: India should gradually move away from an over-reliance on imports for its crude oil and gas requirements. Possible solutions. Contents1 Impact of energy demand2 Countering increased demand3 Impact on India4 Suggestions/measures Impact of energy demand Energy prices are likely to stay elevated… Continue reading Oil on the boil
Adverse impacts of rising inflation
Synopsis: A rising inflation level adversely impacts the purchasing power of the consumer and discourages lending activities in an economy. India is currently observing an upward trend which may induce RBI to alter its accommodative stance and tilt towards a stricter monetary policy. Contents1 Background:2 Inflation levels:3 Impact of Rising Inflation:4 Way Ahead: Background: RBI… Continue reading Adverse impacts of rising inflation
