Inflation Eases To 12.40%,US Economy Grows At 3.3% In Apr-Jun Quarter

29 Aug

Posted by Shyam as Inflation

Finally some good news comes in both from within the country and also from abroad. For the week ending Aug 16th the inflation figures have come to 12.4% as against 12.63% for the last week. Inflation was on a consistent rise for five successive weeks and finally it came down by 0.23% for the week in consideration.

Finance minister has hinted that this could be an early signs of moderation in inflation before it comes to single digit figures. In the primary group of articles 21 products have shown a decline in their prices and another 48 have shown no increase. It mainly included food and fuel items. Crude oil has also been falling and touched lows of $112/barrel.

And here is another good piece of news from US economy. USA has reported a growth of 3.3% in its GDP figures for Apr-Jun Quarter. It was way higher than the Govt estimation of 1.9%. It has seen two dismal quarters when the growth fell to as low as 0.9% and was on the brinks on yet another recession. Thats really a very good development as US being the strongest economy of the world has a direct impact on all other economies including that of India.

The US markets have bounced back and has been trading higher in the last two trading sessions. Both Dow and Nasdaq have gained significantly.But on the other hand the Indian markets or performing on a different note and has been falling for the last 2 trading sessions. Yesterday it fell by 248 points to close at 14,048 levels in sensex and nifty closed at 4,214 levels after a fall of 78 points from its previous close.

This was mainly due to a steep fall in RIL shares which fell by over 3.45% and Hindalco fell by 12.60%. Crude oil touching $119/barrel and an expectation of increase in inflation figures. Currently the Asian markets are also trading higher. So we can expect a gap up opening in the markets today.

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