Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

Jump in inflation in August modest, well below target: Jaitley

Author: IANS/Friday, September 15, 2017/Categories: Economy

Jump in inflation in August modest, well below target: Jaitley

New Delhi - Defending the jump in India's wholesale price-indexed (WPI) inflation in August to 3.24%, nearly double that of July, Union Finance Minister Arun Jaitley said it was well below the target of 4%.

"During monsoon, there is a spike in vegetable prices. It is usually the highest level of inflation in the entire year. We have touched only 3.24%. It is very reasonable and modest against the double digit inflation seen during the earlier UPA rule. In the last one year, consistently inflation is under 4% target of the Reseve Bank of India's monetary policy committee," Jaitley said. 

"We have brought down prices of essential commodities as a result of which the last three years have been the best phase of inflation management. A statutory monetary policy committee has set target of inflation management at 4%," he said.

The annual rate of inflation, based on monthly WPI, stood at 3.24% for August 2017 (over August 2016) compared with 1.88% (provisional) for the previous month and 1.09% during the corresponding month of the previous year, according to data released by the Commerce Ministry.

Fuel and power were the major contributors to the rise in wholesale inflation.

The Finance Minister added that prior to2014, during the UPA regime, the county was used to double digit inflation between 9% and 11%.

The Indian basket of imported crude oils gained nearly $3.50 a barrel during last week even as petrol prices in the country touched their highest levels.

"It is because the global environment of slow down is impacting India. Despite we have maintained reasonable growth rate. There is absence of private investment because of the banking crisis attributable to the mindless loans given during UPA regime. Growth is based on larged foreign direct investment, public spending. India needs large public spending.

"Whatever revenue comes from fuel goes towards large amount of public spending. Do we not want rural roads to be built, highways to be built? Money collected as taxes from fuel doesn't go to government's pocket, but towards infrastructure creation," he said.

Jaitley said that the government was concerned over growth in the manufacturing sector.

"Certainly we are concerned. While service sector grew in the last quarter, manufacturing sector came down. If it was only because of demonetisation, it should have been across. It was in anticipation of Goods and Services Tax (GST) roll-out from July 1. People instead of adding to the manufacturing, were destocking," he said.

"I am hopeful with series of steps, investment environment is improved. Manufacturing in India should pick up," he added.

Print Rate this article:
No rating

Number of views (178)/Comments (0)

rajyashree guha

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free