India's inflation target becomes challenge

Business
May 19 2016 05:43 PM
Preksha

India's inflation target becomes challenge

In the next three months, due to thin supplies, prices of many foodstuffs such as pulses, sugar, vegetables and poultry products have a high probablity of increase. Analysts suggest that this could fuel inflation and give the central bank little room to cut rates.

"Good monsoon rainfall can lead to higher production, but new crops will be available for consumption only after few months. Until we get the new crop, prices will remain elevated due to limited supplies. " said Harish Galipelli, head of commodities and currencies at Inditrade Derivatives and Commodities.

April consumer price inflation broke a recent slowing trend after food inflation came in at 6.32 percent, compared with 5.21 percent in March. Food prices are a political debate topic in India where more than a quarter of its population of 1.2 billion people live on a mere 74 cents or less per day.

Disclaimer : The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of NTIPL, english.newstracklive.com or any employee thereof. NTIPL makes no representations as to accuracy, completeness, correctness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use.
NTIPL reserves the right to delete, edit, or alter in any manner it sees fit comments that it, in its sole discretion, deems to be obscene, offensive, defamatory, threatening, in violation of trademark, copyright or other laws, or is otherwise unacceptable.