As inflation softens, will RBI cut rates?

[Emperor]

The Union government has asked edible oil associations to ensure that the MRP of each edible oils such as sunflower oil, soybean oil and mustard oil is maintained till their availability under lower customs duty.
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Govt. increase import duty on oil from ZERO to 20% read here

As soon as 13-09-2024 above news came Sunflower oil price shoot from Rs.96 and Rs.103/- to Rs.118/- for 910gm pouch.

... and Moneycontrol journalist on 17-09-2024 asking As inflation softens, will RBI cut rates? read here

Rs.22/- increased just in 45-50 days for 1 liter of oil pouch and people thinking inflation softens?

 

[Skidrow]

The government is tending towards capitalism. The consumers are left to shambles in all aspects really. It's such a shame.

 

[TEUser2K1]

Inflation index published is not that reflective of real world realities:

Radios, tape recorders, 2-in-1s remain on CPI playlist

In the January-May period, prices of radios, tape recorders and 2-in-1s were up 9.4% from the year earlier. In the case of VCR, VCD and DVD players, inflation was 12.6% in the first five months of the year.

economictimes.indiatimes.com

It's obvious who all benefits from all this.

 

[aalzi]

Not sure about posting links that are not in English, but a really nice watch if you can find a translation: YouTube (The man in the video is Jayaprakash Narayan)
I'll try to give a summary to the best of my ability:
A well respected politician (who never came into power) from Andhra Pradesh when asked if the Government should reduce taxes, goes on to explain that there were times in Indian history when the highest tax slab was 97.75% (including surcharge for highest tiers). This did not work during then as people stopped believing in the Government and just stopped declaring anything as income. He points out the issue with people complaining with higher tax slabs is not because they are paying more, but because they are not seeing any outcome to the paid taxes. The government should put the effort in showing the progress that is being done through the taxes than trying to iron-fist people into paying more.

The economic climate is heading towards the same direction where people due to lack of belief in the progress will start hiding away their wealth. This will lead to a correction from the Government sooner or later when it's too late.