Retail inflation to have a low 7% handle in FY15:
Barclays
09/07/2014 17:58
Notwithstanding that the monsoon rains has remained below normal and concerns are building over a failed season, retail inflation is likely to have a low 7 per cent handle in the current financial year, says a Barclays report, reported PTI. Monsoon rains are very crucial for the agriculture-driven Indian economy, as nearly 60 per cent of agricultural area is still rain-fed and rains have implications for both inflation and growth, as per the media reports. According to the global financial major, the new government has moved fast, by inducting key vegetables into the essential commodities act and raising the minimum export price for onions, which helped to bring some stability to wholesale prices, reported media. "If these steps, coupled with IMD's projection of a modest increase in rainfall, are realised, we expect retail inflation -- the RBI's key focus at the moment, to have a low 7 per cent-handle, on average, in FY 14-15," Barclays said.
09/07/2014 17:58
Notwithstanding that the monsoon rains has remained below normal and concerns are building over a failed season, retail inflation is likely to have a low 7 per cent handle in the current financial year, says a Barclays report, reported PTI. Monsoon rains are very crucial for the agriculture-driven Indian economy, as nearly 60 per cent of agricultural area is still rain-fed and rains have implications for both inflation and growth, as per the media reports. According to the global financial major, the new government has moved fast, by inducting key vegetables into the essential commodities act and raising the minimum export price for onions, which helped to bring some stability to wholesale prices, reported media. "If these steps, coupled with IMD's projection of a modest increase in rainfall, are realised, we expect retail inflation -- the RBI's key focus at the moment, to have a low 7 per cent-handle, on average, in FY 14-15," Barclays said.
