Global Economy Indian Economy
The Centre for Monitoring Indian Economy (CMIE), in its latest review of the Indian economy, has said that inflation in the economy will average 9% in FY11, as compared to 3.6% in the preceding fiscal.
Inflation was 9.4% between April and December 2010, as compared to 1.7% in the corresponding period of 2009.
According to the CMIE report, "Unseasonal rainfall in October and November 2010 damaged production of some crops including onion. In addition, exports of cotton and sugar have been permitted. Incorporating all these factors, we estimate that inflation will average nine per cent in 2010-11, as compared to 3.6 per cent in the preceding fiscal."
Major contributors to the sky rocketing inflation figure include fruits, milk, eggs-meat-fish, condiments-spices, raw cotton, fuel and power, textiles and basic metals, alloys and metal products.
The economic think-tank foresees inflation moderating to 8.1% in the fourth quarter of the current financial year, from 10.6% in the first quarter and 9.3% in the second quarter; inflation was 8.3% in the third quarter ending December 2010.