It is my promise to Get 7% + D.A for Jan 2011 :- C.J.Mathews Sankarathil,MBA

     
                                             C. J.MATHEWS SANKARATHIL MBA



Rising prices of food and manufactured products will continue pushing up overall inflation untill November when the kharif crop hits the markets.
According to a median forecast of 11 economists polled by DNA, inflation in September is expected to come around 8.55%.
The government is expected to announce the September data on Thursday.
India’s inflation indicator - the wholesale price index (WPI), is expected to remain sticky at August levels for September as well as October months.
“Food inflation will moderate from November. By then, the kharif harvest would have come in and food prices will tend to ease,” said Madan Sabnavis, chief economist, Care Rating.
In August 2010, WPI came in at 8.5% with food inflation at 14.64%, manufactured products at 4.78% and fuel & power at 12.55% higher compared with same period last year.
It should also be noted that the index for the month of August was based on the revised WPI format with a new base year i.e. 2004-05 and 241 new items. Inflation according to the old index was 9.5%.
The latest data on food inflation shows that it was at 16.24% as on September 25, 2010 as compared with a year ago. Fuels and power had increased by 10.73% during the same period.
Economists expect that food prices and manufactured products prices have been high in September and will continue to stay high in October too.
However, by March 2011, economists still expect that overall inflation will cool down. “We expect it will come down to 5.5% by March 2011,” said A Prasanna, vice-president, ICICI Securities Primary Dealership.
Reserve Bank of India (RBI) has been closely monitoring rising prices through WPI and other indicators like the Consumer Price Index (CPI) too. “CPI will continue to remain high. Only the high base will tend to moderate it a bit. But prices will continue to be high,” said Sabnavis.
If inflation stays high, speculations of further rate hikes by RBI will also gain ground since RBI has been resorting to rate hikes citing inflationary pressures in the past.
“We expect a 25 basis points hike in policy rates in the next review,” said Dharmakirti Joshi, chief economist of Crisil, the rating agency.
RBI will review its credit and monetary policy on November 2, 2010.

It is my promise to Get 7% + D.A for Jan 2011 :- C.J.Mathews Sankarathil,MBA

                                              C.J.MATHEWS SANKARATHIL MBA




 Inflation again flies only..........................................................!

The annual inflation rate of India's prices of food, as measured by the wholesale price index, or WPI, for the week ended October 2 marginally rose to 16.37 per cent from the 16.24 per cent of the preceding week, due to higher prices of milk, vegetables, fruits and wheat.
The rate of inflation for the corresponding week in the preceding year was 11.21 per cent. The 52-week average inflation for the week ended October 2 was 18.62 per cent, as per the data released by the Ministry of Commerce and Industry.
The annual rate of inflation under the "Non-Food Articles" category rose to 22.73 per cent from the 22.15 per cent of the preceding week. The 52-week average inflation for the week ended October 2 was 13.81 per cent.
Primary articles
The annual rate of inflation for the week ended October 2 was 18.54 per cent, slightly lower than the 18.53 per cent of the preceding week. It was 8.78 per cent for the corresponding week of the preceding year. The 52-week average inflation for the week was 18.44 per cent, say the data.
The index for this group, with a weightage of 22.02 per cent, increased by 0.66 per cent over the preceding week.
These groups and items showed variations:
The index for the "Food Articles" category increased by 0.89 per cent from the preceding week, due to the higher prices of fruits and vegetables, gram, bajra, masur, urad, barley and moong. However, those of fish-marine, arhar and condiments and spices declined.

Retirement Age of Central Govt employees will remain 60, but why 55 and a unification only for Kerala Government Employees? Protest- C.J.Mathews Sankarathil, MBA

No raise in retirement age of Central govt employees: Cabinet Secretary.

Putting an end to speculation that the retirement age of Central government employees will be raised, the Centre has made it clear that it has no plans to raise the age for superannuation.

"No, there is no such plan. There is no thinking at all. The status quo will continue," Cabinet Secretary K M Chandrasekhar said when asked whether there is any move in this regard.

Currently, the retirement age of Central government employees is 60 years.

Chandrasekhar said there have been rumours that it would be raised but it was nothing but a "wishful thinking".
"I tried to find out. But there is no file in (Department of) Expenditure, no file in DoPT (Department of Personnel and Training). There is nothing. It is more of a wishful thinking," he said in an interview.

The Cabinet Secretary also said the government has no plans to bring an uniformity in the retirement age among the state government employees.

"The states will decide their own retirement age," he said.

All states have their own retirement age -- starting from 55 years (Kerala) to 60 years (Uttar Pradesh, Assam etc). The Madhya Pradesh government teachers retire at the age of 62 years.

Source : Zee News.

Food price Index flying ! Chance leads to 7% D.A in Jan 2011: C.J.Mathews Sankarathil,MBA

* Food price index up 16.44 pct vs 15.46 week ago
* Fuel price index up 10.73 pct vs 11.48 week ago
* Aug consumer price index up 9.88 pct vs 11.25 pct in July
* Cbank seen lifting key rate by 25 bps by end-December (Adds fiscal deficit, CPI, analyst quote)
By Matthias Williams
NEW DELHI, Sept 30 (Reuters) - India's annual food price inflation continued to quicken in mid-September as heavy rains disrupted supplies and analysts see another rate hike by the year end as the central bank acts to stamp down high inflation.
The Reserve Bank of India (RBI) has said emerging macroeconomic conditions, especially prices, would determine its future action, with five rate hikes since mid-March having brought monetary conditions close to normal.
The surge is also a political concern for the ruling Congress party, which faces key state elections this year and next. With a third of the world's poor living in India, the country had seen governments being voted out over high food prices.
Food makes up around 14 percent of the wholesale price index (WPI), the most watched price gauge in India. Policymakers had expected the good summer harvest to slow price rises.
The RBI projects headline inflation INWPI=ECI to ease to 6 percent by March, when the current financial year ends, from 8.5 percent in August, but noted in its September policy review that food prices continued to contribute to inflationary pressures.
"We don't expect food inflation to ease substantially before the kharif (winter harvested) crop comes into the market," said Indranil Pan, chief economist at Kotak Mahindra Bank.
The central bank last raised its repo rate, at which it lends to banks, on Sept. 16 by 25 basis points to 6 percent. Analysts expect another quarter-point rise by the year end.
Data on Thursday showed the food price index in the year to Sept. 18 rose 16.44 percent, compared with 15.46 percent in the previous week, on higher prices of pulses, onions and vegetables.
It was the second straight rise under a new data series -- with a different base year of 2004-05, new components and weightings -- under which readings began in the week to Sept. 4.
Separate data showed the consumer price index (CPI) for industrial workers rose 9.88 percent in August, slower than July's 11.25 percent increase. The CPI component basket has a higher proportion of food items than the WPI basket

DEARNESS ALLOWANCE JANUARY 2011,will be 7% : Cjm

As per the announcement of All India Consumer Price Index Numbers from Labour Bureau, the index increased by 4 points and stood at 178. The Dearness Allowance from July, 2010 is  45%.  We are continuing the calculation to find the increased percentage of additional  Dearness Allowance for the month of January, 2011 will be 7%.
 

Month / Year	B.Y. 2001=100	Total of 12 Months	12 Months Average	% Increase over 115.763	App. DA	DA %
Jun-08	140	1623	135.25	19.49	16.84	16
Jul-08	143	1634	136.17	20.41	17.63	17
Aug-08	145	1646	137.17	21.41	18.49	18
Sep-08	146	1659	138.25	22.49	19.43	19
Oct-08	148	1673	139.42	23.66	20.44	20
Nov-08	148	1687	140.58	24.82	21.44	21
Dec-08	147	1700	141.67	25.91	22.38	22
Jan-09	148	1714	142.83	27.07	23.39	23
Feb-09	148	1727	143.92	28.16	24.32	24
Mar-09	148	1738	144.83	29.07	25.11	25
Apr-09	150	1750	145.83	30.07	25.98	25
May-09	151	1762	146.83	31.07	26.84	26
Jun-09	153	1775	147.92	32.16	27.78	27
Jul-09	160	1792	149.33	33.57	29.00	29
Aug-09	162	1809	150.75	34.99	30.23	30
Sep-09	163	1826	152.17	36.41	31.45	31
Oct-09	165	1843	153.58	37.82	32.67	32
Nov-09	168	1863	155.25	39.49	34.11	34
Dec-09	169	1885	157.08	41.32	35.70	35
Jan-10	172	1909	159.08	43.32	37.42	37
Feb-10	170	1931	160.92	45.16	39.01	39
Mar-10	170	1953	162.75	46.99	40.59	40
Apr-10	170	1973	164.42	48.66	42.03	42
May-10	172	1994	166.17	50.41	43.54	43
Jun-10	174	2015	167.92	52.16	45.05	45
Jul-10	178	2033	169.42	53.66	46.35	46

Expect Dearness Allowance for january 2011 will be 7%. C.J.Mathews MBA

The All India Consumer Price Index number for

(Industrial Workers) (Base 2001=100) for the month of

August 2010 is 178 as announced by Statistics

Department, Labour, Government of India.

DA . Present DA rate from 1.7.2010 is 45%. Increase with

effect from July 2010 is 10%. 

Month	All India Index	% of increase
Nov 2008	148	21.44
Dec 2008	147	22.38
Jan 2009	148	23.39
Feb 2009	148	24.32
Mar 2009	148	25.12
Apr 2009	150	25.98
May 2009	151	26.84
Jun 2009	153	27.78
Jul 2009	160	29.00
Aug 2009	162	30.23
Sep 2009	163	31.45
Oct 2009	165	32.67
Nov 2009	168	34.11
Dec 2009	169	35.70
Jan 2010	172	37.43
Feb 2010	170	39.01
Mar 2010	170	40.59
Apr 2010	170	42.03
May 2010	172	43.54
Jun 2010	174	45.06

July 2010	178
Aug 2010	178

Presently the dearness allowance(DA) based on the

movement in the AICPI (IW)that is 1982=100.The fifth

 CPC had adopted the AICPI(IW) using 1982 series for

estimation of DA.The government has developed a new

 series with base 2001with effect from 2006.Dearness

 allowance as on   July 2010 is 45%.  

Now dearness allowance( DA)is on the way to January

2011.Whenever  DA crosses over 50% the rates of all

 allowances shall automatically increase by 25%.If DA

JANUARY 2011 is 7% the total DA will be 52%.All central

government employees expecting the day to come.All

Kerala state government employees expecting to get

 this  7%  for them being the first D.A after the pay

revision expected to take place by 01/03/2010.

Food price rise in September 2010- Expect high rate DA from January 2011Cjm

NEW DELHI (Commodity Online) : India’s food inflation climbed above 15 percent mark as the RBI hiked key rates by an identical margin in July.

According to Commerce Ministry’s data, India's food price index rose 15.10 per cent while the fuel price index climbed 11.48 per cent, in the year to Sept 4, under a new series with different base year, components and weightings.
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food inflation as measured by the old series with 1993-94 as base year, stood at 11.47 per cent on the year while fuel inflation was at an annual 12.71 per cent.

These figures are not comparable with the latest data release. The primary articles index was up 16.22 per cent in the latest week. It rose 15.40 per cent in the previous week.

The wholesale price index, the most widely watched gauge of prices in India, rose 8.5 per cent in August, the first reading from the new data series.

India's central bank, the Reserve Bank of India raised its key short-term lending rate by 25 basis points and borrowing rate by 50 basis points to check rising prices.