No comments on 'stagflation': Sitharaman


New Delhi, Dec 13 (IANS): Finance Minister Nirmala Sitharaman on Friday denied to comment 'stagflation', saying that "I have heard of the narrative going on and I have no comments to make."

When asked if the Indian economy is entering into a stage of 'stagflation', the Finance Minister said, "I am not willing to discuss as to where the economy stands. I am interested in working towards improving things."

Several economists have expressed concerns after the official data on Thursday showed that retail inflation soared to 5.54 per cent in November, a steep rise of 92 basis points from the inflation number of the previous month.

Stagflation, a combination of slow economic growth with rising inflation, is a phenomenon feared by several economists. Former Prime Minister Manmohan Singh had earlier said that India must watch out for increased risks of such an event occurring.

N.R. Bhanumurthy, Professor at National Institute of Public Finance and Policy, told IANS: "There appears to be a textbook case of stagflation, but the current rise is primarily owing to rise in food prices."

However, former Chief Statistician Pronab Sen said: "The recent rise in CPI figures is a short-term trend and I would not call it stagflation yet."

Sen highlighted the fact that core prices are still going down. "If you take away agriculture, it looks a deflation. I would be concerned if the rising food prices begin to spill over other sectors."

D.K Joshi, Chief Economist, Crisil, told IANS that CPI numbers were not entirely unexpected.

"If you go to the market, you will realise that vegetable prices are indeed very high... That is the chief reason for the spike in inflation," Joshi said.

  

Top Stories

Comment on this article

  • ad, mangaluru

    Fri, Dec 13 2019

    She does not understand the meaning of "Stagfaltion" only knows " saffronisation".

    DisAgree Agree [1] Reply Report Abuse

  • Deshbhakht, Mangalore

    Fri, Dec 13 2019

    Let's assume Ms. Sitaram is given a task of building blocks around a cylindrical crevice. She builds, builds and builds. If you ask her from where are you building ? Bottom up ? Bottom downwards, from the middle up ? Her answer is 'I am not ready to answer you. All that you must remember is I AM BUILDING'

    This is our Finance Minister. She must be praying daily before going to sleep, 'Mr. Modi, take away this task from me, but if it's your wish that I continue doing it, so be it' !!!

    DisAgree Agree [1] Reply Report Abuse


Leave a Comment

Title: No comments on 'stagflation': Sitharaman



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.