RBI: Prices of food items will be up after the 7th Wage Commission
Posted on: 06/Apr/2016 7:40:21 PM
The Reserve Bank of India has estimated that if the recommendations of 7th Wages Commission are implemented, inflation will increase by 1 percent to 1.5 percent.
GDP (Gross Domestic Product) will be up by 0.40 percent.However, the retail inflation will be under 5 percent.
The central government has planned to implement the recommendations of the 7th Wages Commission during the 2nd quarter of the financial year 2016-17.
Once this is implemented, there are prospects of GDP rise. Especially, the effects of the implementation will continue for the next 24 months.
It is estimated that there are are prospects of increase in GDP by 0.40 percent. Further, there are prospects of price increase in food items.
However, the policy of food items stock, buying price and minimum base price can help restrict the price increase of food items.
