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Topic: Inflation Rate
Economists aren’t buying the Statistics Department’s methodology for calculating India’s consumer price inflation numbers for April and May.
The retail inflation, which is factored in by the RBI, has been on decline since March with the lowest dip recorded in November last year at 5.54%.
Das says that the government has tried to remain within the fiscal deficit roadmap set under the Fiscal Responsibility and Budget Management Act.
With inflation expected to decline in the coming months, it will allow the Reserve Bank of India to keep the door open for more policy easing to boost credit demand.
India may be witnessing the most glaring setback among emerging economies, but its double pain of slowing growth & surging inflation is spreading far and wide.
According to govt data, the increase in prices of certain food items was partially neutralised by static prices of manufactured goods during August 2019.
Govt data said inflation in food items dropped to 6.15 % in July from 6.98 % in the previous month, while retail inflation in July fell to 3.15% from 3.18% in June.
The retail inflation based on Consumer Price Index stood at 1.97 per cent in January.
The retail inflation, released earlier this week, too fell marginally on continued decline in food prices, including vegetables and eggs.
The retail inflation eases to a nine-month low of 4.17 per cent in July, from 4.9 per cent in June, data shows Monday.
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