|| SHANIWAR SAMWAD || 04-03-2023

 So, inflation is making headlines again, in  Jan it was 2023 around 6.5% which is more than the comfort zone of the RBI which is 6% max.

The talk of yet another round of rate hikes is being discussed along with details of last MPC minutes that are open in the public domain. The WPI which is now moderating to give solace to corporate to strengthen their balance sheets, also small price hikes of popular goods is going to help them to get full profit which they incurred loss due to the opening of the market after the lockdown.

The rate hike and reduction in the grammage of goods will reach a median point which will lead to the stabilization of prices so as to cool inflation in the short to medium term.

The weightage of different goods in CPI and WPI is gathered by the statistics department. They are compiled separately region-wise and in the urban and rural areas.

The task is mammoth given the size of our country, often we do not get data from any part the data is taken on a pro-rata basis which is not actual but considered one.

The consumption pattern of urban and rural is not the same and region wise it gets changed in a big way, so when final data is derived from it, have some lacunae which should be addressed so as to get near real figures if not the total real figure.

The urban and rural divide is getting blurred with the rapid expansion of social media so the whole process of urban and rural consumption is also getting changed due to the rise in income in the rural area

The reform should be carried out in the computing process with the help of new technologies which capture real-time data from reliable sources.

The work done to tame inflation is being carried out by the RBI and Central Government in a synchronized way to complement each other's actions to tackle the issues, so knee-jerk reactions should be avoided to derail the market.

Let the market to play its role to cool the inflation which is in their benefit. All stakeholders should be informed and act in tandem to avoid any problems in the future.

Right now, we need growth to sustain our economy which is in the best of conditions and flourishing in a big way.

Location: India

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