Are we too late to tackle inflation? The Money Trail May 24, 2022 CFA
India https://www.youtube.com/watch?v=eI_DylnCE-Q Warning signs were there since last December, but the RBI and the Union Govt did nothing and when things started falling apart they are in fire fighting mode. What kept them so long? What was that compulsion?
Last month: RBI Monetary Policy 2022: The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) kept the repo rate unchanged at 4 per cent for the eleventh consecutive time while maintaining an 'accommodative stance', RBI Governor Shaktikanta Das announced on Friday. https://indianexpress.com/article/business/economy/rbi-reserve-bank-of-india-monetary-policy-committee-april-2022-meeting-outcome-key-announcements-repo-rate-crr-economy-gdp-inflation-7859211/ Das said that the MPC had voted unanimously to maintain the accommodative stance ..Das said the real GDP growth for 2022-23 is now projected at 7.2 per cent with Q1 2022-23 at 16.2 per cent, Q2 at 6.2 per cent, Q3 at 4.1 per cent and Q4 at 4.0 per cent. (a signal that the RBI continued to prioritise growth recovery despite inflationary winds and the Russia-Ukraine conflict.)
Suddenly on May 4, 2022: https://www.hindustantimes.com/business/rbi-raises-repo-rate-by-40-basis-points-as-inflation-bites-101651655504496.html Headline inflation in March stood at 6.95%, coming in above the RBI’s comfort level of 6% for a third consecutive month.. the Reserve Bank of India (RBI) has decided to raise the repo rate by 40 basis points to 4.40%.
New rates after fuel excise duty cut: Petrol price slashed by Rs 8.69, diesel by Rs 7.05 https://economictimes.indiatimes.com/industry/energy/oil-gas/petrol-and-diesel-prices-today-new-rates-after-excise-duty-cut/articleshow/91717971.cms
CPI inflation 7.8% & Food inflation 8.4%; Hike in Commodity prices including oil even before the Ukraine conflict, Global Supply chain disruption cause by pandemic, Currency depreciation in developing world crashed, rise in food prices.
When Finance Ministry takes to fakery Prasanna Mohanty | May 16, 2022 https://www.cenfa.org/when-finance-ministry-takes-to-fakery/ To most, the Finance Ministry’s Monthly Economic Report (MER) of April 2022 came as a rude shock. It said: “Evidence on consumption patterns further suggests that inflation in India has a lesser impact on low-income strata than on high-income groups.”
It made two claims: (i) inflation doesn’t hurt the poor but the rich and (ii) lower inflation leads to “redistribution of income.” These are outright absurd. The basis for these is: that the headline CPI inflation fell from 6.2% in FY21 to 5.5% in FY22 and the food inflation fell from 7.7% in FY21 to 3.8% in FY22.
The day the Finance Ministry did so, the Ministry of Statistics and Programme Implementation (MoSPI) released the inflation data for April 2022 showing the headline CPI inflation had touched an eight-year high of 7.8% and the food inflation even higher at 8.4%.