Economic nirvana

Two bits of data released this week point to this pleasant possibility. The government said on Friday that wholesale prices in the week ended 2 June were 4.8% higher than a year ago, lower than their pace of change just a few months ago. Earlier, IIP showed that industrial output in April jumped 13.6% over the year.

C. Rangarajan, chairman of the PM’s Economic Advisory Council, has said that the danger of overheating is receding. There is likely to be a chorus of voices asking RBI to be more sanguine about inflation and stop interest rate hikes. But the jump in IIP has been exaggerated by what has happened in a couple of industries. And the final inflation number has been often revised upwards this year, though quietly.

The signs are comforting, but it is too premature to ask RBI to let its guard down.

Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!