A ‘stable’ outlook should not lead to complacency as several parameters, including inflation, unemployment, are still in the red zone
Just a flattening of infection curve will not lead to restoration of normal growth trajectory
The govt must act to quickly rein in the runaway inflation before it inflicts further distress on people and erodes the demand, making an equitable recovery even more difficult
Food inflation stood at 5.26 per cent last month against 4.78 per cent in April 2021 and 5.88 per cent in the corresponding month a year ago.
Fuel rates are at record highs across the country and petrol has crossed Rs 100 a litre mark in about a dozen states and union territories.
The Consumer Price Index (CPI)-based inflation hit a six-month high of 6.3 per cent in May, from 4.3 per cent in April.
Inflation in fuel and power basket spiked to 37.61 per cent during May, against 20.94 per cent in April, amid hardening of global commodity prices.
As per the data released by the National Statistical Office (NSO), inflation in the food basket was 5.01 per cent in May, significantly up from 1.96 per cent in the preceding month.
International demand for Indian services also worsened, with new export business falling at the quickest rate in six months.
Regional markets shrugged off data showing Japan's economy contracted at 5.1% annual pace in the last quarter as numbers of new coronavirus cases surged.
Rising prices reflect growing economic activity after last year's global shutdown to fight the coronavirus pandemic.
Reserve Bank of India (RBI) has kept the key repo rate unchanged at 4 per cent to support growth in the current situation.
In 2013-14, there was double-digit inflation. In comparison to that, now inflation is less.
The numbers in December 2020 had stood at 2.35 per cent and 3.34 per cent, respectively
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