The Mint Report for 14 March 2011

The Mint Report for 14 March 2011

Rising inflation is back. Data released on Monday shows India’s wholesale price index rose a higher-than-expected 8.31% in February. The previous week it was at 8.23%. What’s different about the latest numbers is that they’re being driven by non-food inflation, which gained 6.1% in February. Until recently, the Reserve Bank had been concerned about rising food prices spiking up general inflation. It’s slated to review its policy rate on Thursday- and is widely expected to hike them. RBI’s target has been to bring wholesale inflation down to seven percent by the end of this month.

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In other news, Air India’s new destination could be set. Deloitte Consulting has suggested a fresh turnaround plan for the airline. The ambitious proposal sees Air India’s fleet growing by 135 new planes by 2015. It also wants flight occupancy to go up to 75% from the current 68%; and market share to climb to 21% from 17.6% in 2010. This is Air India’s third turnaround plan since 2008. At present, the carrier is losing Rs19 crore a day.

Finally, the earthquake and tsunami may have sent Japanese stocks crashing, but Indian markets ended Monday in the green. The Sensex surged 265 points to 18,439. And the Nifty jumped 86 to 5,531.