Inflation in India touches 10.16% recently and this inflations spreads its hand on manufactured goods also(As per recent press release.) Situation is worrying the government. Government announced that RBI will take corrective measures to control the inflation. The inflation is increasing steadily at a higher rate. It seems to be the government is not seeing the situation in subtle and always ask RBI to take action.
Our inflation measurement is also not at par with the international standards. we have seen situation where inflationary conditions are existed in the market, in contrast govt. express deflationary conditions in the country by releasing negative figures.
whether altering the CRR and Repo rates is the only policy measure available to correct the inflation or deflation in the country. There are no other alternatives. Inflation may also be on account of demand and supply gaps, or black marketing. How this has to be identified and to be controlled. What should be the policy decisions or matter should be? What steps the government has to take?
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