Inflation based on wholesale prices, which touched a 4-yr high in June, seems to have peaked for financial year, and is expected to glide down to around 4.1% by Mar 2019, says a report.
Trade war was the buzz word last week with U.S. imposing higher tariffs on Chinese imports since Friday and the Chinese govt retaliating within hours to impose higher tariffs on goods imported from America.
The hike in minimum support price (MSP) of 14 summer crops can increase retail inflation by 73 basis points, depending upon the level of procurement, an SBI report said.
The government will change the base year for calculation of GDP and retail inflation to 2017-18 and 2018 respectively, which is likely to come to effect by 2019-20.
Prime Minister Narendra Modi said the nation's macro fundamentals are strong and asserted that his government is firmly committed to the path of fiscal consolidation.
Moody's has sounded a note of caution that any reduction in excise duty on petrol and diesel would adversely affect fiscal deficit unless it is matched by a commensurate.
The benchmark Sensex managed to post gains for the fourth week in row, garnering 178.47 points to close at 35,622.14, while the broader Nifty racked up 74.03 points to end at 10,817.70.
The BSE Sensex surrendered early gains to end modestly higher at 35,483.47 today amid mixed global cues.
RBI hiked the key rate for the first time in over four years by 0.25% to curb inflationary pressure from high oil prices, a move which will translate into higher EMIs for home, auto and other loans.
The Reserve Bank of India (RBI) raised its policy rate for the first time in more than four years, due to inflation concerns, but kept its policy stance as “neutral”.