- Know all facts about MS DhoniIs Ranveer Singh a sex addict?Revealed:Shahid's marriage dressSee inside pics of Shahid\'s Kapoor\'s Sangeet ceremonyShahid\'s both moms and father pose togetherBollywood beauties with mothers in lawSee what Deepika doing on Ranveer's birthdayPankaj Udhas launched new albumJaved Akthar's family together in movie 'Chalk N Duster'Unknown facts about Ranveer Singh
Floyd Mayweather was Monday stripped by the World Boxing Organization of the welterweight
Food inflation a credit negative for India: Moody's Last Updated : 18 Mar 2013 04:54:49 PM IST Food inflation not good for India: Moody's
"Sustained food inflation is credit negative because it exacerbates India's macroeconomic challenges of slowing growth, high inflation and large fiscal and current account deficits," Moody's Investors Service said in credit outlook report.
While Fitch and Standard and Poor's have downgraded their outlook on India to "negative" from "stable", Moody's Investors Service has assigned a "stable" outlook.
The Wholesale Price Index for February showed that food prices increased by 11.4 per cent year-on-year, raising overall inflation for the month to 6.8 per cent, despite a deceleration in core inflation to 3.8 per cent.
Moody's said India's current pace of food inflation is faster than the global average.
"Moreover, although food inflation is not desirable anywhere, it has particularly credit negative implications for India because of its economic structure and policy framework," it added.
Food inflation, it said, "hurts consumption, government finances, the balance of payments and monetary policy flexibility".
"Because the Indian government subsidises food for a large portion of the population, increases in food prices inflate government expenditure...and the budget deficit, which is already high relative to comparable emerging markets," Moody's' said.
As per the credit ratings agency, food demand is unlikely to fall, and food supply is difficult to raise.
Post Your Comment (0 posted):
Actress Minissha Lamba tied the knot with longtime boyfriend Ryan Tham in Mumbai.
- Actress Amanda Peterson dies at 43
- See Mira Rajput wearing floral jewellery
- Aamir Khan Productions looking for fresh female face
- Is Ranveer Singh a sex addict?
- Revealed:Shahid's marriage dress
- See inside pics of Shahid's Kapoor's Sangeet ceremony
- Shahid's both moms and father pose together
- Happy that same-sex marriages are being accepted: Delevingne
Mice that are exposed to the powerful smell of cat urine early in life do not avoid the sa
Xiaomi the smartphone giant which offers great features at less prices has yet made anothe