RBI Governor Raghuram Rajan said that the central bank expects CPI Inflation to remain around 5%.
RBI Governor Raghuram Rajan said that it expect CPI Inflation to remain around 5% In 2016-17.
CPI inflation excluding food and fuel edged up in February, mainly under
housing, education, personal care and transport and communication, suggesting
capacity constraints in the services sector. Excluding petrol and diesel from this
category, inflation stayed elevated and persistent at or above 5 per cent, indicating a
possible resistance level for further downward movements in the headline. The
stubborn underlying inflation momentum is unlikely to be helped by the 7th Pay
Commission award and the effects of the one-rank-one-pension (OROP) award, or
by the cost-push effect of the increase in the service tax rate. However, rural wage
growth as well as the rate of increase in corporate staff costs was moderate. Also,
input and output prices polled in purchasing managers’ surveys rose modestly for
manufacturing and services.
CPI inflation excluding food and fuel edged up in February, mainly under
housing, education, personal care and transport and communication, suggesting
capacity constraints in the services sector. Excluding petrol and diesel from this
category, inflation stayed elevated and persistent at or above 5 per cent, indicating a
possible resistance level for further downward movements in the headline. The
stubborn underlying inflation momentum is unlikely to be helped by the 7th Pay
Commission award and the effects of the one-rank-one-pension (OROP) award, or
by the cost-push effect of the increase in the service tax rate. However, rural wage
growth as well as the rate of increase in corporate staff costs was moderate. Also,
input and output prices polled in purchasing managers’ surveys rose modestly for
manufacturing and services.
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