Page-12 of Inflation Current Affairs, GK & News

Producer Price Index (PPI): RBI proposes for PPI to measure inflation

The Governor of RBI, D. Subbarao has mooted for a Producer Price Index (PPI) to measure the average change over time in the sale prices of domestic goods and services. Currently, it uses Consumer Price Index (CPI) and Wholesale Price Index (WPI) to aid in measuring inflation. But WPI does not capture price movements of ..

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Core inflation is a better indicator of price trends: RBI

According to RBI Governor, Core inflation is a better indicator of future price trends because of its less volatility. As per him an analysis of longer series of over three years shows that core inflation has statistically significant predictive power. However he added that headline inflation will surely have a larger momentum than core inflation.

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India displaying delayed effects of anti-inflation policies: Fitch

According to Global rating agency Fitch, India, China and Korea — three most powerful emerging Asian economies — are exhibiting delayed effects of tight monetary policies introduced in 2010-11 to tackle inflation. According to Fitch: Slow upgrading in financial position of countries including India and China has come in the way of positive credit rating ..

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RBI defends its move for status quo, holds high inflation the reason

Under attack for not reducing interest rates, RBI Governor D Subbarao held that inflation at current levels is unacceptable and monetary-tightening is need for the hour in order to ascertain sustainable growth. As per Mr. Subbarao, the policy rate hikes have assisted in assuaging inflation. The move from RBI actually came against the expectations of ..

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Fitch cuts down on India’s credit rating outlook

After Standard and Poor’s another global rating agency Fitch degraded India’s credit rating outlook to negative. As per Fitch: corruption, inadequate reforms, high inflation and slow growth are major reasons behind the fall in ratings sluggish growth and rising inflation in combination with corruption and lack of economic reforms are major the deteriorating agents the ..

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