MS Swaminathan, geneticist who’s renowned for his pioneering role in India’s Green Revolution, talks about India’s rural economy.
Pronab Sen said that the divergence between WPI and retail inflation would gradually equalise.
The government and RBI, apart from industry, need to rediscover their appetite for adventure.
Retail inflation measured by the consumer price index (CPI) eased to 3.66 per cent in August due to a slower rate of price rise in vegetables, fruits and protein items, except pulses.
The annual rate of inflation stood at 3.85 percent in the corresponding month of the previous year, according to data released by the commerce and industry ministry.
“One should not forget that there is a new series of national accounts in place but the economy is the same,” he said.
CEA expresses hope that growth will be close to 8 per cent in 2015-16.
RBI Governor went against the views of four out of seven members in the TAC.
Economy stabilised, ‘significant improvement’ can be expected during the current fiscal, says Centre
Retail inflation has halved over the 19 months from double digit levels, giving the RBI scope to ease policy rates to help boost growth.
The central bank continues to misread the situation because it persists in using year-on-year data.
RBI misses an opportunity to cut rates. And risks a hardening of stance by the political establishment.
A waning supply shock in an environment of tepid demand affords RBI elbow room to wield the knife.
Wholesale Price Index (WPI) based inflation was (-)2.36 per cent in May. It has been in the negative zone since November 2014.
The government will release on Tuesday the data on wholesale price inflation, which had stayed in the negative zone for seven consecutive months.