How to get relief from inflation, Reserve Bank told that the government will have to take these steps
Inflation: The people of the country are facing severe inflation. Although inflation has decreased somewhat in the July figures, but it is still much higher than the norms set by the Reserve Bank. The Reserve Bank Governor has also said that inflation will come under control in the first quarter of next year. At the same time, in an article of the Reserve Bank, the measures to bring inflation under control have been discussed.
According to an article published in the Bulletin of the Reserve Bank of India (RBI), inflation in the country continues to remain high and appropriate policy steps are needed to bring it under control in the coming times. Retail inflation based on the Consumer Price Index moderated to 6.71 per cent in July. Inflation has come down mainly due to cheaper food items. In order to control inflation, the Reserve Bank has increased the policy rate i.e. repo by 1.40 percent in three consecutive monetary policy reviews. Inflation has remained above the central bank’s satisfactory level for seven consecutive months.
Inflation rate incident a matter of relief
On the state of the economy, an article written by a team led by Reserve Bank Deputy Governor Michael Debabrata Patra said, “Perhaps the most pleasant development in recent times has been the softening of inflation in July by 0.30 per cent over June.” Whereas in the first quarter (April-June) of 2022-23, it has come down by 0.60 per cent from an average of 7.3 per cent. .”
Inflation will come below 5 percent next year
According to the article, “The inflation situation is more or less in line with our estimates, if the forecast is correct, inflation will come down from 7 percent to 5 percent in the first quarter of the next financial year, which is within the satisfactory level of the central bank.” will conform. The government has given the RBI the responsibility to keep retail inflation between 2 per cent and 6 per cent.
Import inflation risk
The RBI article said imported inflation risks remain. Apart from this, there is a possibility of the producers passing on the cost of raw materials to the customers. But it depends on the ability of producers to pass on the burden to customers in terms of pricing and wages. However, some of the risks are mitigated. These include reduction in commodity prices, especially crude oil, easing supply pressures and a better monsoon.
the danger is not over
“Inflation has come down, but it is still at a high level,” the article said. This will require appropriate policy steps to bring it under control in the times to come. According to the article, the supply situation in the country has improved. Recently, with the improvement of monsoon, the manufacturing and services sector is witnessing a boom.
all depend on festive demand
With the coming of the festival, the confidence of the customers should increase in the cities including villages. Sowing activities are gaining momentum. Investment activities are being supported by strong capital expenditure by the central government. If producers gain pricing power and wages, imported inflation pressure points remain at high risk.
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