-The Business Standard Relative price changes across food items may impinge on long-term food security Rising food prices have been a significant driver of inflation in India over the past few years. In early 2008, there was a global surge in food prices, which certainly had an impact on the domestic situation. But, this subsided in a few months. Since then, the pressures seem to have been predominantly internal. If these trends...
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Runaway food prices highlight the need to unshackle the farm sector
-The Times of India Why isn't aam admi smiling? The question's relevant, since some cheer's apparent in government circles over wholesale price index-based inflation falling to 6.62% in January. Headline inflation, it's said, will drop further by March-end. To common people, the WPI inflation figure's a meaningless number. If WPI inflation's dipped a fourth successive month, food prices have been riding high for far longer. Policymakers periodically recommend release of foodgrains from...
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-The Economic Times India's consumer prices climbed 10.56 per cent in December from a year earlier. This will hold the RBI's rate-cutting hand and prove politically painful for the government. The increase in the Consumer Price Index (CPI), over three percentage points more than the increase in the Wholesale Price Index (WPI) number, is due to a spurt in prices in the food and beverage category - mainly vegetables, oils and fat,...
More »A short-sighted cap-Chandra M Gulhati
-The Indian Express The government’s proposal to price-control certain drugs will create more problems than it will solve From clothes to cars, prices of consumer products the world over are determined taking into account input costs, margins and competition, popularly called the cost-based pricing system. Departing from this sound, fair, tried and tested principle of commerce, the government’s new drug pricing policy, approved by the Group of Ministers headed by Sharad Pawar,...
More »Retail inflation hits double digits in April
-The Times of India Spiralling prices of vegetables, oils and fats, milk and milk products pushed consumer price inflation to double digits in April in yet another hurdle to the Reserve Bank of India's efforts to ease interest rates. The double digit retail inflation rate also poses fresh challenges for the UPA government which has been on the back foot for its handling of the economy. Data released by the Central Statistics Office...
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