Arab Today, arab today indias inflation rate flat raising rate cut hopes
Last Updated : GMT 21:26:48
Arab Today, arab today
Arab Today, arab today

India's inflation rate flat, raising rate cut hopes

Arab Today, arab today

Arab Today, arab today India's inflation rate flat, raising rate cut hopes

Reserve Bank of India governor Raghuram Rajan's aggressive
New Delhi - AFP

 India's wholesale inflation fell to a five-and-a-half-year low driven by ongoing falls in fuel and food prices, data showed Monday, boosting expectations of an interest rate cut early next year.
The Wholesale Price Index, India's inflation measure with the biggest basket of goods, slipped to a lower-than-expected zero percent in November from a year earlier, the lowest rate since July 2009, official data showed.
The latest WPI compares with a five-year-low of 1.77 percent recorded in October, and was below analysts' estimates of about 1.1 percent.
Analysts said Reserve Bank of India governor Raghuram Rajan's aggressive policies to curb price rises appeared to be paying off.
The sharp fall in global crude oil prices also helped keep inflation in check in India, which imports most of its fuel.
"This means the Reserve Bank of India (RBI) will be under pressure to cut rates," said Arun Singh, senior economist at credit data firm Dun & Bradstreet.
Figures released on Friday showed consumer inflation slowed to 4.38 percent, a three-year low, while industrial output contracted, also putting pressure on the central bank to cut rates.
That inflation figure was below the RBI's six-percent goal for January 2016, and down sharply from double-digit inflation last year.
Finance Minister Arun Jaitley is hoping for a cut in borrowing costs to boost investment and stimulate the faltering economy, which is mired in the longest slowdown in a quarter of a century.
But even with inflation falling, the RBI has resisted appeals to loosen monetary policy.
Rises in prices of food especially have caused huge hardship for India's 1.2 billion population, of which nearly a quarter live in severe poverty, according to the World Bank.
Rajan, a former chief economist of the IMF, said earlier this month a cut in its benchmark repo rate was "premature", but indicated a reduction was very likely in early 2015 if inflation continued to fall.
"The world has not changed between now and the last RBI policy meeting. The fall in inflation was expected," said Ashutosh Datar, economist at IIFL Holdings Ltd, who predicted the RBI will wait for two more months of inflation data before acting.
India's economy grew by 4.7 percent last year and the RBI expects it to expand by 5.5 percent this year -- far below the near double-digit growth needed to generate employment for tens of millions of new entrants to the job market.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today indias inflation rate flat raising rate cut hopes Arab Today, arab today indias inflation rate flat raising rate cut hopes

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today indias inflation rate flat raising rate cut hopes Arab Today, arab today indias inflation rate flat raising rate cut hopes

 



Arab Today, arab today Designer Rania Adel reveals her new collection

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 23:13 2017 Sunday ,18 June

New ransomware virus attacking mobiles in Oman
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday