April inflation probably rose to 5%: Reuters poll




The article reports the Inflation on account of rising food prices in India. The Indian Central Bank decision to lower the Interest rates will depend on the Inflation remaining within the targeted limits. In addition to this, the Consumer Price Index depending on the food prices is largely dependent on the monsoons for the growing season of the food crops.

Topics covered are Interest rates, Inflation, relationship between Interest rates and Inflation, causes and consequences of Supply-side and Demand-side Inflation. Explain using the National output diagrams and discuss the combined effect of Supply-side and Demand-side Inflation.

Evaluation will include effectiveness of Monetary policy to tackle recession, Government Intervention to tackle Inflation , Unemployment, impact on the consumers, producers and society in short term and long term.