Fall in the Rupee Value and Its Impact
Fall of the rupee: Impact on inflation and Loans
By,
Praveen.G.C
Rohith.K.S
Sandeep.A
What is Inflation ?
Inflation is a rise in the general price level and is reported in rates of change. Essentially what this means is that the value of your money is going down and it takes more money to buy things
India Inflation Rate
The inflation rate in India was recorded at 4.70 percent in May of 2013. Inflation Rate in India is reported by the Ministry of Commerce and Industry. Historically, from 1969 until 2013, India Inflation Rate averaged 7.73 Percent reaching an all time high of 34.68 Percent in September of 1974 and a record low of -11.31 Percent in May of 1976. In India, the wholesale price index (WPI) is the main measure of inflation. The WPI measures the price of a representative basket of wholesale goods. In India, wholesale price index is divided into three groups: Primary Articles (20.1 percent of total weight), Fuel and Power (14.9 percent) and Manufactured Products (65 percent). Food Articles from the Primary Articles Group account for 14.3 percent of the total weight. The most important components of the Manufactured Products Group are Chemicals and Chemical products (12 percent of the total weight); Basic Metals, Alloys and Metal Products (10.8 percent); Machinery and Machine Tools (8.9 percent); Textiles (7.3 percent) and Transport, Equipment and Parts (5.2 percent). This page includes a chart with historical data for India Inflation Rate.
Record fall in Rupee from Rs 55 per USD to Rs 59 per USD has left many in panic with questions as will it decline further or pause at this level or regain in future. Sujan Hajra, chief economist Anand Rathi Financial services says “Rupee has depreciated 8% against the US dollar since beginning May 2013, despite active interventions from the policy makers. However, rupee was not the only currency that got hammered. Brazil, Australia and South Africa witnessed far sharper fall in
By,
Praveen.G.C
Rohith.K.S
Sandeep.A
What is Inflation ?
Inflation is a rise in the general price level and is reported in rates of change. Essentially what this means is that the value of your money is going down and it takes more money to buy things
India Inflation Rate
The inflation rate in India was recorded at 4.70 percent in May of 2013. Inflation Rate in India is reported by the Ministry of Commerce and Industry. Historically, from 1969 until 2013, India Inflation Rate averaged 7.73 Percent reaching an all time high of 34.68 Percent in September of 1974 and a record low of -11.31 Percent in May of 1976. In India, the wholesale price index (WPI) is the main measure of inflation. The WPI measures the price of a representative basket of wholesale goods. In India, wholesale price index is divided into three groups: Primary Articles (20.1 percent of total weight), Fuel and Power (14.9 percent) and Manufactured Products (65 percent). Food Articles from the Primary Articles Group account for 14.3 percent of the total weight. The most important components of the Manufactured Products Group are Chemicals and Chemical products (12 percent of the total weight); Basic Metals, Alloys and Metal Products (10.8 percent); Machinery and Machine Tools (8.9 percent); Textiles (7.3 percent) and Transport, Equipment and Parts (5.2 percent). This page includes a chart with historical data for India Inflation Rate.
Record fall in Rupee from Rs 55 per USD to Rs 59 per USD has left many in panic with questions as will it decline further or pause at this level or regain in future. Sujan Hajra, chief economist Anand Rathi Financial services says “Rupee has depreciated 8% against the US dollar since beginning May 2013, despite active interventions from the policy makers. However, rupee was not the only currency that got hammered. Brazil, Australia and South Africa witnessed far sharper fall in