Inflation Effect Indian Economy Big Disclosure In RBI Latest Article | Effect of Inflation On Indian Economy, Big Disclosure In RBI Article
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Indian Economy Inflation: High inflation is depressing private consumption spending, resulting in sluggish corporate sales and a decline in private investment in capacity building. This assessment has been presented in an article by the Reserve Bank. According to this article published in the latest Bulletin of the Reserve Bank of India (RBI), there is a need to reduce inflation so that the revenue and profitability of companies can be increased along with increasing consumer spending. The paper, written by a team led by Michael Debabrata Patra, deputy governor of the central bank, examines the impact of inflation on consumption and its adverse effects.
Inflation at two year low
However, RBI says that the views expressed in the article are the personal views of the authors. Despite all the efforts of the Reserve Bank, retail inflation remained more than five percent in the financial year 2022-23. However, it came down to a two-year low of 4.25 per cent in May. According to this article, a combination of recent economic data and corporate results clearly shows that inflation is reducing the expenditure on private consumption. Due to this, the sales of companies are decreasing and private investment in capacity building is also decreasing. Inflation Effect Indian Economy Big Disclosure In RBI Latest Article | Effect of Inflation On Indian Economy, Big Disclosure In RBI Article.
The article published on ‘State of the Economy’ states that bringing down inflation and stabilizing its associated expectations will restore consumption expenditure and increase sales and profitability of companies. According to this article in the RBI Bulletin, on the global front, where economies like India are picking up again, there is a state of lethargy or decline in some countries.
Inflation Effect Indian Economy Big Disclosure In RBI Latest Article | Effect of Inflation On Indian Economy, Big Disclosure In RBI Article.
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