New Delhi: Finance Ministry said on Friday that rising global commodity prices, especially crude oil and higher logistics costs, pose an upside risk inflation, although it sought to draw Rest from monsoon and opening up of the economy to ease the price pressure in the economy.
Although the monthly economic report good It was silent on rising pump prices of petrol and diesel, recognizing how food inflation was rising rapidly in urban areas. The rise in inflation has prompted the RBI to cut more rates as wholesale price inflation rose to 12.9%, the highest since at least 2012, while retail inflation hit a six-month high of 6.3%. But it was calculated.
“There could have been some supply-side disruptions contributing to price pressures in May 2021 due to local restrictions due to the second wave. With the encouraging progress of the southwest monsoon, supply-side interventions in the pulses and edible oils market, and gradual unlocking, the report prepared by the Economic Division of the Finance Ministry said that the caseloads of the states are declining. Cost pressure will ease.
It painted a rosy picture on the economic recovery, calling for faster immunization and bridging the gaps in health infrastructure. The ministry expects the recent announcements to boost consumption sentiment and the capex cycle.
Pointing to recent economic relief measures, the report said, “the package is expected to give more oil to the wheels of the Capex cycle”.
Although the monthly economic report good It was silent on rising pump prices of petrol and diesel, recognizing how food inflation was rising rapidly in urban areas. The rise in inflation has prompted the RBI to cut more rates as wholesale price inflation rose to 12.9%, the highest since at least 2012, while retail inflation hit a six-month high of 6.3%. But it was calculated.
“There could have been some supply-side disruptions contributing to price pressures in May 2021 due to local restrictions due to the second wave. With the encouraging progress of the southwest monsoon, supply-side interventions in the pulses and edible oils market, and gradual unlocking, the report prepared by the Economic Division of the Finance Ministry said that the caseloads of the states are declining. Cost pressure will ease.
It painted a rosy picture on the economic recovery, calling for faster immunization and bridging the gaps in health infrastructure. The ministry expects the recent announcements to boost consumption sentiment and the capex cycle.
Pointing to recent economic relief measures, the report said, “the package is expected to give more oil to the wheels of the Capex cycle”.
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