Inflation calls for fiscal discipline

  Inflation calls for fiscal discipline

The 5.8% jump in wholesale(थोक ) prices in June, up from 4.4% a month before, is a warning against any fiscal(वित्तीय/राजस्व) laxity(ढीलापन/बेपरवाही. The RBI would have to at least put off any rate cuts, and growth(विकास) could be hurt(चोट/आघात पहुंचाना) . The June jump is sharp(स्पष्ट/तीव्र) and unexpected(अप्रत्याशित): brokerages(दलाली) polled earlier reckoned(गणना किए गए) a hike of 5.2% as likely. Most politicians know inflation(मुद्रास्फीति) is a vote killer. This is election season: later this year and in January 2019, Rajasthan, Madhya Pradesh, Chhattisgarh and Mizoram will elect state governments. Apart from Mizoram, all other states are ruled by the BJP. An upset will be regarded(ध्यान से देखना/विचार करना) as a signal of how India will vote in Parliamentary elections in summer, 2019, and is likely to nudge voter sentiments(भावनाओं/कल्पना) one way or other. Yet, today, policy options are circumscribed(घिरा) by reality and inertia(निष्क्रियता/जड़त्व).

The Reserve Bank of India (RBI) — which implements(सामग्री/लागू करता है) monetary policy(मौद्रिक नीति) — is widely(व्यापक रूप से) expected(उम्मीद /अपेक्षित) to hike(वृद्धि) interest rates to cool rising prices end-July. It has a lot of thinking to do. Recently, headline inflation was driven by food and fuel prices. Both are considered(विचार करना) temporary shocks — ‘noncore inflation’ in jargon, driven by short-term market disruptions(अवरोधों/व्यवधान ) immune(छूट प्राप्तप्रतिरक्षित/) to RBI’s rate tweaks. Today’s inflation is a complex mix of short- and long-term shocks. The biggest contributor(योगदान देने वाला) to inflation is oil and fuels, driven by the Donald Trump administration’s hardline stance against Iran, amplified(बढ़ाना/विस्तार से व्याख्या करना) by the decline of the rupee. But electricity, metals and manufacturing rates have also shot up. Monetary policy might not affect global crude(कच्चे) or potato prices, but it can cool underlying(आधारभूत/मुख्य) inflation in other sectors. The government’s decision to hike minimum support prices ahead of elections has sent a signal that inflation is tolerable(संतोषजनक) and targeted sops will continue. That is not cheery(आनंदमय/खुशहाली) news for either the consumer or the investor.

 

 

Important Vocabulary

1.Hurt(चोट/आघात पहुंचाना)
Synonyms: aching, aggrieved, agonized, battered, bleeding
Antonyms: OK, happy, healthy, perfect, pleased

2.Inertia(निष्क्रियता/जड़त्व).
Synonyms: apathy, laziness, paralysis, passivity, sluggishness
Antonyms: action, busyness, liveliness, activity, animation

3.Considered(विचार करना)
Synonyms: studied, treated, advised, contemplated, designed
Antonyms: disregarded, forgotten, neglected, unplanned, unstudied

4.Disruptions(अवरोधों/व्यवधान )
Synonyms: interruption, break, separation, severance, splitting

5.Tolerable(संतोषजनक)
Synonyms: adequate, allowable, bearable, decent, livable
Antonyms: inadequate, insufficient, intolerable, poor, unacceptable

6.Cheery(आनंदमय/खुशहाली)
Synonyms: bright, lively, pleasant, happy, sprightly
Antonyms: unhappy

7.Disruptions(अवरोधों/व्यवधान )
Synonyms: interruption, break, separation, severance, splitting

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