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Easing Commodity Prices, Kharif Arrival To Ease Inflation: Finance Ministry

The ministry acknowledged the impact of increased borrowing costs and stubbornly high inflation is beginning to show in multiple leading indicators of global economic activity

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Inflationary pressures are set to ease in coming months due to easing international commodity prices and the new Kharif arrival, the finance ministry’s department of economic affairs on Tuesday said in its monthly economic review.

The report acknowledged an impending global recession adding that a rapid deterioration in global growth prospects, coupled with high inflation and worsening financial conditions, have aggravated those fears.

It said that the impact of increased borrowing costs and stubbornly high inflation is beginning to show in multiple leading indicators of global economic activity.

On hiring, the report said there could be an improvement in upcoming quarters driven by a rebound in new business hirings and optimism due to solid sales volumes experienced during the festive season.

After a slump in October exports, the report highlighted the export outlook and said that the global slowdown might dampen India’s exports businesses outlook.

It, however, said that resilient domestic demand, a re-invigorated investment cycle, a strengthened financial system, and structural reforms would provide impetus to economic growth in the coming months.

India’s exports in October entered negative territory for the first in about two years, declining sharply by 16.65 per cent to USD 29.78 billion.

Key export sectors – gems and jewellery, engineering, petroleum products, ready-made garments of all textiles, chemicals, pharma, marine products, and leather – recorded negative growth during the last month.



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finance ministry economic review kharif