Policy balance
The recent appointment of Sanjay Malhotra as Governor of the Reserve Bank of India (RBI), replacing Shaktikanta Das, signals a pivotal shift in India’s monetary policy dynamics.
The fuel and power basket saw a deflation of 10.12 per cent in April, against 1.76 per cent deflation in the previous month.
India’s annual Wholesale food inflation eased to 3.60 per cent from 5.49 per cent in April, government data showed on Thursday. However, the government did not release the complete set of Wholesale Price Index (WPI) figures for April due to the Covid-19 outbreak and its impact on data collection.
As per the data, the WPI deflation in primary articles was 0.79 per cent in April, as against inflation of 3.72 per cent in March.
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The fuel and power basket saw a deflation of 10.12 per cent in April, against 1.76 per cent deflation in the previous month.
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“In view of the limited transactions of products in the wholesale market in the month of April 2020, due to spread of Covid-19 pandemic, it has been decided to release the Price Movement of selected Sub-groups/Groups of WPI, following the principles of adequacy,” the Office of Economic Adviser, Department for Promotion of Industry and Internal Trade said.
All commodities WPI could not be computed for April-2020 due to non- availability of manufactured product group index, it added.
It said the price indices of primary articles have been computed based on mandi prices of agricultural items; ex-mine prices of minerals; prices of crude petroleum and natural gas.
Price indices of fuel and power major group have been computed based on the price data reported from Ministry of Petroleum and Natural Gas, selected public sector undertakings (PSUs), Office of the Coal Controller and Central Electricity Authority.
Price indices of these major groups (primary articles and fuel & power) were released for April 2020 with standard procedures. No changes in estimation procedures were done, it added.
The data (ex-factory prices) was collected through electronic means of communications from selected factories and institutional sources. The price movement of these sub-groups/groups of WPI was worked out by taking the prices of only those items for which at least 25 per cent of price quotations were reported from the selected manufacturing units.
Data released on Monday showed consumer inflation – determined by the Consumer Price Index – came in at 5.84 per cent in March, lowest recorded in four months.
Stole the level of inflation stayed above RBI’s medium-term goal of 4 per cent for the sixth month in a row.
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