False
Download Learnerz IAS app from the Play Store now! Download

$show=search/label/May%202022

 


Challenges in controlling inflation UPSC NOTE

 

  • The RBI’s Monetary Policy Committee (MPC) has for an eighth consecutive meeting chosen to leave the benchmark repo rate unchanged at 6.50% on concern that ‘elevated food inflation could derail’ its efforts to ensure durable price stability.

  • Food inflation as measured by the Consumer Food Price Index accelerated to a provisional 8.7% in April, from March’s 8.52%, and recent indicators such as Crisil’s food plate costs suggest that price gains spurred by a surge in tomato, onion and potato prices may have quickened even further in May

  • The Centre for Monitoring Indian Economy (CMIE) forecast on June 8, that headline retail inflation likely increased by 31 basis points last month to 5.14%, driven almost entirely by a 40 basis points acceleration in food price gains to 9.1%. 

  • The MPC, which voted by a 4-2 majority to “remain focussed on withdrawal of accommodation to ensure that inflation progressively aligns to the target” of 4%, flagged the challenges it faces in achieving this goal as increasing adverse climate events trigger supply shocks that make it very hard to foresee the food price trajectory. 

  • The CMIE cited last month’s heatwaves as the cause for the rise in the costs of fruits and vegetables.

  • The MPC is also only too aware that besides the threat from escalating food costs, which remain vulnerable to the precariously low water storage levels at the country’s reservoirs as well as the ongoing exceptionally hot summer temperatures, rising prices of industrial metals could undermine the deflationary trend in core inflation

  • Add to the mix the uncertain outlook for crude oil prices given the tensions in West Asia and the output cuts being implemented by the OPEC+ producer nations, and it is a recipe for heightened uncertainty on the inflation path. 

  • The RBI’s latest round of surveys underline precisely why price stability is the central concern for policymakers

  • RBI Governor Shaktikanta Das is absolutely justified in maintaining an unwavering focus on anchoring inflation expectations, given that it is, as he put it, “the required foundation for sustained” long-term growth

COMMENTS

Name

Amritsar,1,April 2024,301,Art & Culture,1,August 2023,251,Courses,7,Daily Current Affairs,48,December 2023,189,Disaster Management,2,Environment and Ecology,148,February 2024,228,Foundation Course,1,GDP,1,GEMS Club,1,GEMS Plus,1,Geography,154,Govt Schemes,2,GS 2,1,GS1,6,GS2,36,GS3,15,GST,1,History,9,Home,3,IAS Booklist,1,Important News,71,Indian Economy,118,Indian History,2,Indian Polity,135,International Organisation,12,International Relations,97,Invasive Plant,1,January 2024,240,July 2023,281,June 2022,6,June 2023,268,June 2024,173,March 2024,238,May 2022,17,May 2024,330,Mentorship,2,November 2023,169,October 2023,203,Places in News,2,Science & Technology,66,Science and Technology,90,September 2023,205,UPSC CSE,111,
ltr
item
Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Challenges in controlling inflation UPSC NOTE
Challenges in controlling inflation UPSC NOTE
https://lh7-us.googleusercontent.com/slidesz/AGV_vUchNi2nOCjDj_xVCu98GMGSck1bJnjZzQmQk21hRxbE-0L2mH7XhcLcJrAidNxZRfu0X4R5GY3LsmYfDd4Zj15KXUIV6B3s1dcsPcKnYtul3YWjQ7RCd-9byyZOXmz4MEejcPOVUioNeUDz-XVMQsuOIgsRFo_DqHmKBVZUMnpe=s2048?key=Sbi7svDDvxBnd3XNZUZjCg
https://lh7-us.googleusercontent.com/slidesz/AGV_vUchNi2nOCjDj_xVCu98GMGSck1bJnjZzQmQk21hRxbE-0L2mH7XhcLcJrAidNxZRfu0X4R5GY3LsmYfDd4Zj15KXUIV6B3s1dcsPcKnYtul3YWjQ7RCd-9byyZOXmz4MEejcPOVUioNeUDz-XVMQsuOIgsRFo_DqHmKBVZUMnpe=s72-c?key=Sbi7svDDvxBnd3XNZUZjCg
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
https://www.learnerz.in/2024/06/challenges-in-controlling-inflation.html
https://www.learnerz.in/
https://www.learnerz.in/
https://www.learnerz.in/2024/06/challenges-in-controlling-inflation.html
true
4761292069385420868
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content