Global food prices are at the highest in more than 6 years, driven by a jump in the cost of everything because of demand from China, vulnerable supply chains and adverse weather.
Year-on-year method misses trends in prices, so month-to-month seasonal adjustment should be used. According to this, May-December avg inflation was 4.05%.
According to data released by the Ministry of Statistics & Programme Implementation, food inflation declined to 3.41% in December in 2020, compared to 9.5% in November.
Inflation, highest since May 2014, rose both on account of food inflation and core inflation. Economists expect a prolonged pause in rate cuts by the RBI.
The sudden emergence of supply strains has come as a blow to the global economy which has been struggling to regain its footing after the shock of the Covid-19 lockdowns.
Focusing on core prices — which strips out volatile food & fuel costs — instead of the retail consumer prices carries the risk of under-predicting inflation.
While bond yields tend to fall amid low inflation & interest rate cuts, market experts say they’ve been rising due to concerns over tax collections, fiscal deficit & potential impact of US tariffs.
It is one of the most advanced long-range air defence and anti-missile radars. It has been acquired under an about USD 145-million deal signed in 2020.
In its toughest time in decades because of floods, Punjab would’ve expected PM Modi to visit. If he has the time for a Bihar tour, why not a short visit to next-door Punjab?
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