Indian Inflation 2007 has been reflecting a 4.05 percent decline during the month of August. Rate of inflation in India is decreasing due to lowering of prices of vegetables, poultry chicken, fruits, lentils, and a few manufactured items.
The Indian Inflation rate in July was 4.45 percent and it has been observed that the month of August has experienced a decline in inflation. However, the RBI is not keen on relaxing its policies. Only a few manufactured goods have experienced reduction in prices in the process.
The rate of inflation for wholesale goods was 6.69 percent in the month of January, which later came down to 4.28 percent by 1st June and further reduced to 4.03 percent towards the end of the month, thus adding to the lowering of Indian Inflation 2007.
RBI has been firm in its policy for data revision and firm manufactured product prices. Economists consider the manufacturing inflation as the key inflation in the Indian economy and are expecting relaxation in policies from the RBI. Interestingly, the annual inflation up to 21st April was 5.77 percent which went up to 6.07 percent thereafter.
According to RBI governor Yaga Venugopal Reddy, the RBI is keen on containing inflation at 5 percent this FY begun in April, 2007. However, the onset of the monsoons in July has resulted in better crops and other farm items, leading to a reduction in their prices.
Few manufacturing products that have become cheaper now are imported basic pig iron edible oil, methanol, bakery products, and foundry pig iron. A rising trend has been seen in prices of milk, tea, and arhar dal at the rate of 4 percent.
The trends in Indian Inflation 2007 are given below:
- March 10 - (week ending 24 Feb) 6.10 percent
- March 16 - 6.46 percent
- April 6 - 6.39 percent
- April 14 - 5.74 percent
- April 20 - (week ended 7 April) 6.09 percent
- May 4 - 5.77 percent
- May 10 - 5.25 percent
- June 23 - (week ending 9 Jun) 4.38 percent
- July 13 - 4.27 percent
- August 11 - (week ending 28 July) 4.45 percent
Indian Inflation 2007 is definitely on the wane and has been observed to have been influenced by global factors. The domestic inflation is expected to undergo tectonic changes and is possibly becoming a victim of outdated anti-inflationary measures. |