Vehicle owners will have to pay more towards insurance for their vehicles as the enhanced motor insurance rates has come into effect from April 01. The Insurance Regulatory and Development Authority -IRDA has issued a notification to this effect. As per the new rates, private car owners would have to pay premium depending on the size of the vehicles.

It is a measure of inflation that finds application in tax law, when computing long-term capital gains on sale of assets. Section 48 of the Income-Tax Act defines the index as what is notified by the Central Government every year, having regard to 75 per cent of average rise in the consumer price index (CPI) for urban non-manual employees for the immediately preceding previous year.

The Central Statistical Office released the quick estimates of national income, consumption expenditure, saving and capital formation for 2010-11 today. Savings and investment data for 2010-11 are new and all other data are revisions to earlier releases. GDP at factor cost at constant (2004-05) prices (real GDP) grew by 8.4 per cent in 2010-11. This growth was at the same level of 8.4 per cent in 2009-10. (As per earlier data real GDP growth was 8.5 per cent and 8.0 per cent in 2010-11 and 2009-10). Demand side GDP at constant market prices grew by 9.6 per cent in 2010-11 over a level of growth of 8.2 per cent in 2009-10.

Muneesh Kapur1 This paper focuses on modelling and forecasting inflation in India using an augmented Phillips curve framework. Both demand and supply factors are seen as drivers of inflation. Demand conditions are found to have a stronger impact on non-food manufactured products inflation (NFMP) vis-a-vis headline WPI inflation; moreover, NFMP is found to be more [...]

The Union Finance Minister Shri Pranab Mukherjee said that the decline in the monthly headline inflation for December 2011 to 7.47% as against 9.11% in November 2011 was mainly due to significant decline in inflation for primary articles including food inflation in the month of December 2011. Shri Mukherjee was reacting to the monthly headline inflation data which was released today for December, 2011. The Finance Minister Shri Mukherjee said that he is confident that moderation in inflation would continue in the coming months though softening in the prices of manufactured goods despite the rapid decline in non-food primary inflation may be more gradual. The Finance Minister said that headline inflation should be between 6 and 7 per cent in March end 2012.

The Union Finance Minister Shri Pranab Mukherjee said that he is confident that moderation in inflation would continue in the coming months, though softening in the prices of manufactured goods, despite the rapid decline in non-food primary inflation, may be more gradual.

Calculate Long term capital gain on sale of capital Assets other then shares with the help of Indexation.- We have given below the Cost Inflation (CII) Index calculator which automatically calculates Indexed cost of your asset. In the calculator You just have to fill the Year of Sale, Year of Purchase , Cost of Purchase/Acquisition/Improvement and Index if sale is made in financial year 2011-12 or later. Cost Inflation Index for financial Year 2011-12 is 785 and for financial year 2012-13 the Index will be announced somewhere in August 2012.

India’s inflation rate continued to remain close to worrisome double-digit levels bolstering speculation that the Reserve Bank of India (RBI), despite a slowing economy, may increase interest rates yet again to cool prices when it presents the quarterly policy review later this month. So, expect your EMIs on loans to go up all over again.

Prime Minister Manmohan Singh has called a meeting on Saturday to discuss policy options with regard to slowing economic growth and high inflation. The meeting (with PM) is on the current economic situation. We will have a discussion on growth and inflation, and consider the policy options in this regard, Prime Minister’s Economic Advisory Council (PMEAC) chairman C Rangarajan said.

Two sets of data to be released this week – industrial output growth for August and consolidated monthly inflation for September – would largely determine the Reserve Bank of India’s (RBI’s) next move on interest rate hikes. Policy makers are facing a harsh dilemma: a slew of fiscal and monetary measures to cure inflation has not tamed prices but cast side effects on growth.