Hindi English Translation || Editorial || Cold comfort: On inflation and government intervention

Cold comfort: On inflation and government intervention

Despite (इसके बावजूद, के बावजूद, परवाह किए बिना) the easing of retail inflation, there is no room for complacency (शालीनता, लापरवाही, आलस्य)

The latest retail inflation (मुद्रा स्फ़ीति) numbers point to (संकेत करना, साबित करना) a slight (थोड़ा, न्यूनतम, सीमांत) softening (नरम, कमी, संयम) in the pace (गति, दर) of price gains (मूल्य लाभ), and that should provide policymakers some solace (सांत्वना, आराम) that recent interventions (हस्तक्षेप, भागीदारी) appear to be working. Inflation measured by the Consumer Price Index (CPI) (उपभोक्ता मूल्य सूचकांक), slowed 75 basis points from April’s 95-month high of 7.79%, to 7.04% in May. While it is hard to quantify (measure the quantity of) the effect that the RBI’s surprise 40 basis points interest rate increase of early May had on prices, the Centre’s May 21 decision to cut (कटौती करना, कम करना) the excise duty (उत्पाद शुल्क) on petrol and diesel by ₹8 and ₹6, respectively, seems to have had an immediate impact (प्रभाव, परिणाम). Inflation in the transport and communication category of the CPI slowed by 137 basis points to 9.54% last month. This key category, with a weight (larger number, bulk, lion’s share) of 8.59 that places it behind only cereals (a grain or plants that produce it (for example-wheat, maize, rice & etc.)) and housing, captures the pump prices (the retail selling price of petrol/diesel (to the public)) of the main transportation fuels, making it a crucial indicator of price pressures in the economy. A closer look, however, shows inflation in the category continued to quicken (accelerate, step up, increase, surge, rise) sequentially (क्रमिक रूप से, लगातार), even if at a slower pace. Disconcertingly (unsettlingly, disturbingly, worryingly), rural consumers, who have comparatively (relatively, in comparison, by comparison, proportionately) lower purchasing power (the ability to buy something (goods/services)) than their urban peers (equal, fellow) and yet are heavily reliant (dependent on) on the fuels for farm operations, experienced a significantly slower softening of only 42 basis points in the year-on-year (year over year (for comparison)) pace. With the price of the Indian basket of crude oil (the raw natural resource that is extracted from the earth and refined into products such as gasoline, jet fuel, diesel and other petroleum products) now having surged (increase, rise, go up, advance, escalate, quicken) by almost 8.5% from April to a 10-year high this month, and the rupee plunging (fall sharply, fall steeply, plummet, drop rapidly, go down) to successive new record lows against the dollar, it would be unwise (ill-advised, ill-considered, short-sighted, misguided, thoughtless) to drop one’s guard (to become less careful, to become less vigilant, to become less alert) especially given the pass-through (passing on a cost to a customer) impact transportation costs have on most other prices.

Food prices, the other driver (a factor (that causes a specific thing to happen)) of retail price gains, offered far less respite (rest, break, interval, intermission, halt) with the Consumer Food Price Index (CFPI) (a measure of change in retail prices of food products consumed by a defined population group in a given area with reference to a base year) inflation slowing by only 34 basis points to 7.97%. City consumers experienced an acceleration (increase, rise, surge, escalation) in food price gains as urban CFPI inflation quickened 11 basis points to 8.2% last month. Nine of the 12 items on the food and beverages (a drink, such as tea, coffee, liquor, beer, milk, juice, or soft drinks, usually excluding water) sub-index (sub-indicator) of the CPI, also quickened sequentially, resulting in (cause, bring on, bring about) the month-on-month (used to compare data for one month with that in previous months) inflation accelerating 30 basis points from April’s pace. Prices of vegetables and those of meat and fish surged 18.3% and 8.23%, respectively, from their year-earlier levels, adding to the nutritional precarity (the state of being uncertain/insecure/unsafe) of low-income households (family, house). And even though inflation in edible oils (cooking oil; fat of plant, animal or microbial origin, which is liquid at room temperature and is suitable for food use) slowed from April’s pace, there is no room for complacency given that price gains in the vital cooking medium were still running at 13.3% amid (in the middle of, surrounded by; during) persistent (continuous, constant, unending, unrelenting, unceasing) supply concerns in the wake of (as a result of some event, especially an unpleasant one; in the aftermath of, as a consequence of, on account of, because of, owing to) the Ukraine war and the disruption in sunflower oil imports. May’s wholesale price data also provide little comfort, with headline (relating to a rate of inflation based on the consumer price index (CPI)) WPI inflation quickening to a fresh high of 15.9%. With the RBI’s consumer confidence survey (The Consumer Confidence Survey (CCS) is one of the most keenly watched surveys conducted by the Reserve Bank of India. The CCS, conducted bimonthly (every two months) in 19 major cities, seeks responses on current perception and future expectations on a host of indicators such as income, employment, inflation and spending) showing an appreciable (sizeable, considerable, significant) deterioration (aggravating, compounding, intensification) in households’ expectations of the one-year ahead price level, authorities must stay laser-focused (giving 100% attention) on the battle to tame (curb, control, moderate, mitigate) inflation.

Courtesy: The Hindu

Important Word List With Meaning

1.inflation (noun)

Hindi Meaning - मुद्रा स्फ़ीति
English Meaning - simply meaning “cost of living”; increase of price level of goods & services and vice versa decrease of currency value.

2.intervention (noun)

Hindi Meaning - हस्तक्षेप, भागीदारी
English Meaning - the process of intervening in something; involvement, interference.

3.despite (preposition)

Hindi Meaning - इसके बावजूद, के बावजूद, परवाह किए बिना
English Meaning - in spite of, notwithstanding, regardless of.

4.complacency (noun)

Hindi Meaning - शालीनता, लापरवाही, आलस्य
English Meaning - carelessness, laziness, laxity; self-satisfaction, smugness, self-regard.

5.point to (phrasal verb)

Hindi Meaning - संकेत करना, साबित करना
English Meaning - indicate, suggest, signal, signify, denote, reveal.

6.slight (adjective)

Hindi Meaning - थोड़ा, न्यूनतम, सीमांत
English Meaning - small, little, minimal, marginal.

7.softening (noun)

Hindi Meaning - नरम, कमी, संयम
English Meaning - decrease, reduction, lessening, moderation.

8.pace (noun)

Hindi Meaning - गति, दर
English Meaning - speed, rate.

9.price gain (noun)

Hindi Meaning - मूल्य लाभ
English Meaning - a general increase in the price of something.

10.solace (noun)

Hindi Meaning - सांत्वना, आराम
English Meaning - comfort, consolation, support.

11.Consumer Price Index (CPI) (noun)

Hindi Meaning - उपभोक्ता मूल्य सूचकांक
English Meaning - The CPI looks at the basket of consumer goods and services and it measures the change in price of this basket over a period of time. To put it simply, the CPI monitors retail prices at a certain level for a particular commodity.

12.cut (verb)

Hindi Meaning - कटौती करना, कम करना
English Meaning - reduce, decrease, lessen.

13.excise duty (noun)

Hindi Meaning - उत्पाद शुल्क
English Meaning - the taxes levied on the manufacture of goods within the country, (as opposed to custom duty that is levied on goods coming from outside the country).

14.impact (noun)

Hindi Meaning - प्रभाव, परिणाम
English Meaning - effect; results.

15.sequentially (adverb)

Hindi Meaning - क्रमिक रूप से, लगातार
English Meaning - in succession, successively, continuously.

16.cold comfort (phrase)

English Meaning - poor/slight consolation or empathy.

17.ease (verb)

English Meaning - lessen, reduce, moderate.

18.Retail or Consumer Price Index (CPI) inflation (noun)

English Meaning - The change in the price index of the basket of consumer goods and services over a period of time is referred to as CPI-based inflation or retail inflation.

19.room (noun)

English Meaning - scope, chance, leeway, freedom, latitude, opportunity (for something to happen).

20.basis point (BPS) (noun)

English Meaning - a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equivalent to 0.01% (1/100th of a percent). Used for measuring change in interest rate/yield.

21.quantify (verb)

English Meaning - measure the quantity of.

22.weight (noun)

English Meaning - larger number, bulk, lion’s share.

23.cereal (noun)

English Meaning - a grain or plants that produce it (for example-wheat, maize, rice & etc.).

24.pump price (noun)

English Meaning - the retail selling price of petrol/diesel (to the public).

25.Inflationary/price pressures (noun)

English Meaning - the demand and supply-side pressures that can cause a rise in the general price level; cost-push inflation, hot-economy, deficit finance.

26.quicken (verb)

English Meaning - accelerate, step up, increase, surge, rise.

27.disconcertingly (adverb)

English Meaning - unsettlingly, disturbingly, worryingly.

28.comparatively (adverb)

English Meaning - relatively, in comparison, by comparison, proportionately.

29.purchasing power (noun)

English Meaning - the ability to buy something (goods/services).

30.peer (noun)

English Meaning - equal, fellow.

31.reliant (adjective)

English Meaning - dependent on.

32.year-on-year (adjective)

English Meaning - year over year (for comparison).

33.Indian Basket (IB) (or) Indian Crude Basket (noun)

English Meaning - The Indian crude oil basket is derived from sour grade (Oman and Dubai average) and sweet grade (Brent) of crude oil processed at Indian refineries in the ratio of 75.50:24.50. It is used for the purpose of macro-economic calculations as petroleum product prices are linked to their own market.

34.crude oil (noun)

English Meaning - the raw natural resource that is extracted from the earth and refined into products such as gasoline, jet fuel, diesel and other petroleum products.

35.surge (verb)

English Meaning - increase, rise, go up, advance, escalate, quicken.

36.plunge (verb)

English Meaning - fall sharply, fall steeply, plummet, drop rapidly, go down.

37.unwise (adjective)

English Meaning - ill-advised, ill-considered, short-sighted, misguided, thoughtless.

38.drop one’s guard (phrase)

English Meaning - to become less careful, to become less vigilant, to become less alert.

39.given (preposition)

English Meaning - considering, taking into account, bearing in mind.

40.pass-through (noun)

English Meaning - passing on a cost to a customer.

41.driver (noun)

English Meaning - a factor (that causes a specific thing to happen).

42.respite (noun)

English Meaning - rest, break, interval, intermission, halt.

43.Consumer Food Price Index (CFPI) (noun)

English Meaning - a measure of change in retail prices of food products consumed by a defined population group in a given area with reference to a base year.

44.acceleration (noun)

English Meaning - increase, rise, surge, escalation.

45.beverage (noun)

English Meaning - a drink, such as tea, coffee, liquor, beer, milk, juice, or soft drinks, usually excluding water.

46.sub-index (noun)

English Meaning - sub-indicator.

47.result in (phrasal verb)

English Meaning - cause, bring on, bring about.

48.month-on-month (adjective)

English Meaning - used to compare data for one month with that in previous months.

49.precarity (noun)

English Meaning - the state of being uncertain/insecure/unsafe.

50.household (noun)

English Meaning - family, house.

51.edible oil (noun)

English Meaning - cooking oil; fat of plant, animal or microbial origin, which is liquid at room temperature and is suitable for food use.

52.amid (preposition)

English Meaning - in the middle of, surrounded by; during.

53.persistent (adjective)

English Meaning - continuous, constant, unending, unrelenting, unceasing.

54.in the wake of (phrase)

English Meaning - as a result of some event, especially an unpleasant one; in the aftermath of, as a consequence of, on account of, because of, owing to.

55.headline (adjective)

English Meaning - relating to a rate of inflation based on the consumer price index (CPI).

56.Wholesale or Wholesale price Index (WPI) inflation (noun)

English Meaning - The change in the price index of the basket of wholesale goods (and no services) over a period of time is referred to as WPI-based inflation or wholesale inflation.

57.headline inflation (noun)

English Meaning - it is a measure of the total inflation within an economy, including commodities such as food and energy prices.

58.core inflation (noun)

English Meaning - it is a measure of the total inflation within an economy, excluding commodities such as food and energy prices (which change frequently).

59.Consumer Confidence Index (CCI) (noun)

English Meaning - The Consumer Confidence Index (CCI) is a survey that indicates how optimistic or pessimistic consumers are regarding their expected financial situation. If the consumers are optimistic, spending will be more, whereas if they are not so confident, then their poor consumption pattern may lead to recession.

60.Consumer Confidence Survey (CCS) (noun)

English Meaning - The Consumer Confidence Survey (CCS) is one of the most keenly watched surveys conducted by the Reserve Bank of India. The CCS, conducted bimonthly (every two months) in 19 major cities, seeks responses on current perception and future expectations on a host of indicators such as income, employment, inflation and spending.

61.appreciable (adjective)

English Meaning - sizeable, considerable, significant,.

62.deterioration (noun)

English Meaning - aggravating, compounding, intensification.

63.laser-focused (adjective)

English Meaning - giving 100% attention.

64.tame (verb)

English Meaning - curb, control, moderate, mitigate.