There is a chance inflation might get worse; this is what you need to know

credits: samaatv

Details: The finance ministry warned on Thursday that the exchange rate, commodity supplies, and seasonality could intensify the magnitude of prices and transportation costs in the country, despite the fiscal deficit remaining unchanged at 0.9 percent of GDP in the first two months of the current fiscal year. What happened: The government’s pro-growth effort, as well as effective pricing monitoring, should give relief to the general populace. According to the report, the government had absorbed the pressure of rising international rates and provided “maximum relief” to consumers by keeping petroleum levy and sales tax at a minimum level, and would provide targeted subsidies on wheat, sugar, and pulses to 40% of the population, for whom the government had compiled a database. What else: Overall, the central forecast for October and beyond shows that the year-on-year inflation trend resumed, but within a wide range of uncertainty. “Inflation in October is expected to fall below the level seen in September, but the probability range is wide,” it said.

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