Coming back with inflation
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Coming back with inflation, the challenges on the economic front are 2019

The central bank believes that the risk of inflation is rising in the coming year. Is the New Year coming up with inflation? If RBI is showing signs of inflation, then this inflation is coming with tough economic challenges for the new government.

The last Lok Sabha election happened in 2014 when prices of crude oil had risen due to sky-high prices. However, soon after the results came, the price of crude went to the lowest level of the current decade and during the four years of Biba, the Central Government got the biggest relief from missing inflation. Now 2019 elections are going to be held. What is going to knock down inflation?

The central bank believes that the risk of inflation is rising in the coming year. Is the New Year coming up with inflation? If RBI is showing signs of inflation, then this inflation is coming with tough economic challenges for the new government.

In fact, in the review report released by RBI after the monetary review policy, then Governor Urjit Patel said that in the second half of the financial year 2018-19, the inflation could be between 2.7% to 3.2%, while in the first quarter of the financial year 2019-20 It can be between 3.8 to 4.2 percent.

These are the challenges

At present, there is a rein of central government on inflation and the consumer is not feeling inflation due to the downturn of food items (food inflation). Although the Reserve Bank believes that if this situation can change and the price of food items will increase the challenge for the government can increase.

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The suspicions are on whether the increase in MSP will affect food inflation. Apart from this, due to low prices in the food products market at the current time, the income of rural consumers of the country is likely to be weak.

Economic front are 2019

The price of crude oil is currently hinged. In the US, the cost of crude oil is falling, while the price of crude oil remains steady after the interim declaration by the Gulf countries. However, this can not be denied the possibility of increasing the price of crude oil and it can go against the government’s interest.

Interest rates in the US have increased for the fourth time in a year. This decision has pressure in the stock market and bond market worldwide. Compared to dollar, weakness is seen in other global currencies.

There is a buzz in the general elections in the country. In such a situation, the central and state governments can announce populist plans in the coming days. At the same time, the burden of expenses for the populist schemes in the past can be found on the treasury of the central and state government. In such a situation, the central government needs to be prepared for more financial loss.

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