RBI to review inflation, GDP outlook on July 27: Dy governor
Reserve Bank deputy governor K C Chakraborty said on Thursday that the apex bank will offer its assessment of inflationary trends and economic growth forecast in the forthcoming monetary policy review.
"On 27th July, the Governor's policy will say what is the assessment of the Reserve Bank (on inflationary trends and economic growth forecast). Wait for sometime," Chakraborty told reporters in Chennai when asked for his comments on the higher GDP forecast by the International Monetary Fund.
The International Monetary Fund upped its growth projection for the domestic economy to 9.5 percent this year from its April forecast of 8.8 percent, stating that favourable financial conditions and robust corporate profits will accelerate economic expansion.
Chakraborty and another deputy governor Usha Thorat were in the city to attend the RBI board meeting, which was chaired by Governor D Subbarao.
Food inflation eases to 12.63 pc; fuel prices up 18 pc
Annual food inflation eased to 12.63 percent for the week ended 26th June but fuel inflation shot up to 18.02 percent after the hike in rates of petroleum products.
The rate of price rise of food items was 12.92 percent in the previous week ended 19th June.
Vegetable prices fell by over 4 percent year-on-year, led by a massive decline in rates of potato and onion.
Potato became cheaper by over 42 percent, while onion by 8.75 percent on an annual basis.
Fuel inflation for the week under review, however, rose sharply to 18.02 percent after the impact of fuel price hike by the government on 25th June.
Prices of petrol and diesel raised by up to Rs 3.50 a litre, while that of LPG and kerosene were hiked by 35 per cylinder and Rs 3 a litre respectively.
Fuel inflation for the week ending 19th June stood at 12.90 percent.
Overall inflation for May was 10.16 percent, led by high food prices.
Food inflation had remained above the 16 percent level for most part of the year.
However, it had fallen sharply for the week ended 19th June to 12.92 percent, from 16.90 percent in the week ago.