New Delhi: Deepak Parekh says, India’s headline Customer Index Price inflation rate should come off in December. India’s inflation rate rose by 14 months a high of 6.2 percent in October from 5.5 percent in the previous month, as food inflation galloped on the back rise of vegetable prices. Expectations are there that inflation rates are coming off from December onwards, Parekh said and addressed in the CNBC TV18 Global Leadership Summit interview. Similar words are reiterated by the Reserve Bank of India’s Governor Shaktikanta Das that even though there were few humps, the inflation rate should be moderated.
This was despite the inflation remaining higher than the medium-term target of the RBI and breaching the upper tolerance of inflation of 6 percent in October, the October reading was 5.9 percent in 15 forecasts and breached RBI’s upper band target of 6 percent for the first time in more than a year rising fears that the central bank may hold rates of the eleventh consecutive time at its meeting in December.
Parekh also said that India’s corporate debt market is still shallow, he added that there should be increasing funding access for mid-level companies as well as large companies. Goyal commented sharply contrasts the view of RBI that they should be taken the food inflation pressure is not be ignored, August the Governor said that the public at large understands inflation more in terms of food inflation than the other components of headline inflation.
The Governor said that during the pandemic, RBI prioritized growth and liquidity infusion. Later it shifted the focus to inflation, our primary focus has been maintaining financial stability which breeds growth and prosperity, said Das. Referring to the comment that he had made in the past, the Governor said, that financial stability is a public good. We do not wait for the house to catch fire, prudence is our guiding philosophy.
