Inflation for the week-ended June 7 is at 11.05% versus 8.75%. A CNBC-TV18 poll saw inflation for the week-ended June 7 at 9.93%. Inflation for week ended April 12 has been revised to 7.95%, it had earlier been estimated at 7.33% earlier.
Double digit inflation numbers shocked the markets too, which were witnessing heavy selling pressure. The highest inflation numbers were 11.11%, which was in May 1995. Huge beaten down sectors are realty, banking, metal, FMCG, auto and capital goods. Midcap and small cap also caught in bears' grip.
A Prasanna, Chief Economist, ICICI Securities said it clearly looks like the manufacturing prices may have also gone up and that�s probably why inflation came in at 11.05%. As far as action from RBI is concerned, more action is on the cards. He not sure as to when this action would take place, but they probably might wait till the policy. He feels India needs decisive action. He is not looking at 25 bps kind of an action. He said India needs more.
Rating agency Moody's said the Reserve Bank of India, or RBI, looks set to further tighten Monetary Policy. The central bank will not wait until the next formal review. It feels that inflation, and tightening Monetary Policy will weigh on investor sentiment.
Sanjeev Sanyal, Regional Economist, Deutsche Bank (Asia) feels inflation in double digits already, is a huge surprise. Everybody was expecting a significant increase in the inflation rate, but it is well above everybody�s expectations. He sees at least another quarter and a little bit more of double digit inflation, followed by a fairly aggressive tightening from the Central Bank.
Double digit inflation numbers shocked the markets too, which were witnessing heavy selling pressure. The highest inflation numbers were 11.11%, which was in May 1995. Huge beaten down sectors are realty, banking, metal, FMCG, auto and capital goods. Midcap and small cap also caught in bears' grip.
A Prasanna, Chief Economist, ICICI Securities said it clearly looks like the manufacturing prices may have also gone up and that�s probably why inflation came in at 11.05%. As far as action from RBI is concerned, more action is on the cards. He not sure as to when this action would take place, but they probably might wait till the policy. He feels India needs decisive action. He is not looking at 25 bps kind of an action. He said India needs more.
Rating agency Moody's said the Reserve Bank of India, or RBI, looks set to further tighten Monetary Policy. The central bank will not wait until the next formal review. It feels that inflation, and tightening Monetary Policy will weigh on investor sentiment.
Sanjeev Sanyal, Regional Economist, Deutsche Bank (Asia) feels inflation in double digits already, is a huge surprise. Everybody was expecting a significant increase in the inflation rate, but it is well above everybody�s expectations. He sees at least another quarter and a little bit more of double digit inflation, followed by a fairly aggressive tightening from the Central Bank.
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