India’s inflation is set to zoom with the announcement by the Manmohan Singh government on the freeing up of petrol and diesel prices. The announcement has raised hopes of a further decontrol of the oil sector over the next few years, which could help balance public finances and let private companies challenge state-run firms’ decades-old retailing monopoly.
Prices of cooking gas and kerosene, the biggest component of subsidies, were raised lower than recommended by a panel of experts, to avoid burdening poor people and ward off opposition within the coalition.
Meanwhile, Indias annual monsoon rains, key to farm output and economic growth, are expected to be better than previously forecast, raising prospects of good harvests and possibly helping cool double-digit food inflation. Monsoon rains, which deliver 75-90 percent of Indias rainfall, are expected to be at 102 percent of the long-period average for the June-September season, the weather office and government officials said on Friday.
China Manufacturing Contraction Deepens In June
China's manufacturing activity contracted at a faster pace in June, reducing the prospects of a promising economic recovery, preliminary results of a survey by Markit Economics and HSBC revealed Thur