Hindi English Translation || Editorial || Price worries: On inflation

Price worries: On inflation

The inflation (मुद्रास्फीति) trajectory suggests a rate cut may remain elusive for some time

From a 14-month high of 6.2% in October, consumer price inflation moderated to 5.5% last month. Much of this minor respite (राहत, विराम) stems from a decline in the inflation rate of some food items. For vegetables, it cooled from a 57-month peak of 42.2% to just under 30%, while foodgrain prices rose at the slowest pace in 28 months, and pulses cooled to just over 5% after a prolonged (लंबा करना) spell of double-digit spikes. Despite these pockets of relief, overall food inflation remained sharp at over 9% for the third straight month, with edible oil prices firming up 13.3%, the highest in 30 months as a global price spike has coincided with an import duty hike (बढ़ोतरी, वृद्धि) by the Centre. It is no surprise coconut oil prices are up over 42%, even as items such as garlic (85.1%), potato (66.7%), cauliflower and cabbage (well over 40%), are pinching consumers. While recent conversations about the economy have focused on decelerating urban demand, the price rise trend is hitting rural consumers harder with close to 6% inflation in November as well as higher food prices.

Despite assertions (दावे, जोरदार कथन) by the government that food prices are volatile and should be ignored for monetary policy purposes when growth is stumbling (ठोकर खाना), higher spends on meals are spilling into other items’ prices. Manufacturing and services firms have reported intensifying cost pressures last month compelling (मजबूर करना) them to hike prices at the highest pace in 12 years. The Reserve Bank of India (RBI), which had originally estimated October-December inflation to average 4.8%, raised it to 5.7% at its monetary policy review last week. This implies inflation this month — which will be the last data before the RBI’s Monetary Policy Committee (MPC) meets next — could still be high at 5.4%. This would be well above the central bank’s median target of 4% — the MPC now expects average inflation to attain that level only by the second quarter of 2025-26. The government, whose clamour (शोरगुल, हंगामा) for an interest rate cut was ignored by the MPC last week, may be hoping its new appointee at the helm of Mint Street, another Finance Ministry insider, may oblige (बाध्य करना) with more urgent and bigger rate cuts to support growth. While some assert a rate cut in February’s MPC meet is virtually cemented, going by current trends, the data may not back such a move as growth might recover a bit and inflation may cool a tad more, thus diminishing (To make something smaller or less important) any urgency. That the Centre would have presented its Budget 2025-26 by the next MPC meet, may help the rate cut case going forward, if it demonstrates fiscal prudence (समझदारी, विवेकशीलता) and steps to ease citizens’ living costs.

Courtesy: The Hindu

Important Word List With Meaning

1.Inflation (Noun)

Hindi Meaning - मुद्रास्फीति
English Meaning - A general increase in prices and a decrease in the purchasing power of money.

2.Respite (Noun)

Hindi Meaning - राहत, विराम
English Meaning - A short period of rest or relief from something difficult or unpleasant.

3.Prolong (Verb)

Hindi Meaning - लंबा करना
English Meaning - To extend the duration of something.

4.Hike (Noun)

Hindi Meaning - बढ़ोतरी, वृद्धि
English Meaning - A sharp increase in price, quantity, or activity.

5.assertions (Noun)

Hindi Meaning - दावे, जोरदार कथन
English Meaning - A confident and forceful statement of fact or belief.

6.Stumble (Verb)

Hindi Meaning - ठोकर खाना
English Meaning - To trip or lose balance while walking or to make a mistake in action or speech.

7.Compel (Verb)

Hindi Meaning - मजबूर करना
English Meaning - To force someone to do something.

8.Prudence (Noun)

Hindi Meaning - समझदारी, विवेकशीलता
English Meaning - The quality of being cautious and wise in decision-making.

9.Oblige (Verb)

Hindi Meaning - बाध्य करना
English Meaning - To require someone to do something, often by law or moral responsibility.

10.Clamour (Noun)

Hindi Meaning - शोरगुल, हंगामा
English Meaning - A loud noise or demand for something.

11.Elusive (Adjective)

English Meaning - Difficult to find, achieve, or define.

12.Diminish (Verb)

English Meaning - To make something smaller or less important.