INFLATION SHOOTS UP !

I WAS DRINKING COFFE IN THE MORNING WHILE GOING THROUGH THE NEWSPAPER WITH A PLEASANT WEATHER AROUND. BUT , THE NEWS INSIDE IT WAS NOT AT ALL PLEASANT , WE ARE WELL AWARE OF THE ECONOMIC DOWNTURN ,WE ARE FACING. THE SCHOLARS HAVE ALEARDY PREDICTED , IT’S GONNA BE WORSE FOR THE WHOLE WORLD ESPECIALLY FOR INDIA ; AS SHE IS GOING TO FACE THE WORST OF WORST SCENARIOS , GDP IS GOING TO BE AT THE LOWEST , MORE THAN THE YEAR 1947. IT WAS WRITTEN IN THE HEADLINE ‘ INFLATION ACCELARATES TO 6.93% DIMMING CHANCES OF A RATE CUT ‘ , WE HAVE WITNESSED THE VARIATIONS IN THE INFLATION THIS YEAR , HOW IT HAS BECOME AN ICEBERG IN OUR PATH ! . THE INTREST RATES CAN’T BE FURTHER REDUCED AS SAID BY THE RESERVE BANK OF INDIA , THERE IS A LIMMIT TO CUT THE INTRESTS RATES , WE CAN’T MOVE BEYOND THAT LINE.

INDIA ‘s RETAIL INFLATION HAS SHOOT TO THE HUGE PERCENTAGE OF 6.93% , WHICH IS MAJIORILY DUE TO THE RISE IN THE PRICES OF FOOD , WHICH IS TERMED AS FOOD INFLATION . THIS MONSTER HAS GONE BEYOND THE MEDIUM TARGET OF RESERVE BANK OF INDIA FOR THE TENTH MONTH , UPSETTING IT IS . THE FIGURE IN THE JULY WAS 6.15% , BUT , IT IS BEING SAID THAT IT IS HIGHER , ACORDING TO THE FORECASTS IN THE REUTERS POLL OF ANALYSTS . IT WAS RECORDED 6.23% IN THE MONTH OF JUNE . THE FOOD PRICES HAVE CLIMBED UP , DUE TO SUPPLY SIDE DISRUPTIONS. A HIGH JUMP OF 9.62% COMPARED TO THAT OF 8.72% IN JUNE . RESERVE BANK OF INDIA LAST WEEK ANNOUNCED FEW CHANGES IN THE POLICY , UNCHANGING THE INTREST RATES AND CUT DOWN THE REPO RATE BY 115 BASIS POINTS . THE MEDIUM TERM SET BY THE RESERVE BANK OF INDIA FOR INFLATION IS 4% ABOUT WHICH I MENTIONED ABOVE.

INDIA HAS EXPECTATIONS ABOUT THE CONTRACTION OF THE ECONOMY MORE THEN 4.5% IN THIS CURRENT FISCAL YEAR . CORE INFLATION HAS BEEN IN BETWEEN 5.8% AND 5.9%. BUT THE GOOD NEWS IS WE ARE EXPIRIENCING BEAUTIFULL MONSOON THEESE DAYS AND DUE TO THE MONSOON RAINS , AWAITING THE AVERAGE OF 104% FOR LONG TERM IN THE MONTHS OF AUGUST AND SEPTEMBER. THIS IS A SIGN DESIGNATING THE HEAVY AND RICH HARVESTS , ADDING TO OVERCOME THE DAMAGES INCURRED DUE TO THE NOVEL CORONAVIRUS PANDEMIC.

I FEAR FOR THE BALLOON HEADING FOR A BURST !

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