Banking, Financial and Economic Awareness

2019-12-17

1. WPI inflation rises in November

Wholesale or WPI inflation rises to 0.58% in November due to the rise in food prices.
The price rise in non-food articles declined to 1.93 % from a 2.35 % rise in October.
It was slowing down since June and rose to 0.16 % in October.
Recently, the Consumer Price Index (CPI) based inflation (retail inflation) for November 2019 was recorded at a three-year high of 5.54 %.
Wholesale Price Index (WPI):
- It is a measure of the average change in the prices of commodities at the wholesale level.
- WPI does not include services.
- WPI inflation is also called headline inflation.

British Oil Company BP and Reliance Industries Ltd (RIL) have signed an agreement related to proposed Indian fuels and mobility joint venture (JV).
JV may be formed in the first half of 2020.
It will have pan-India fuels retail service station network and aviation fuel marketing business.
BP:
- It was earlier known as The British Petroleum Company plc and BP Amoco plc.
- It is a British oil and gas company. It is also the sixth-largest Oil and Gas Company in the World.
- Chairman: Helge Lund

In its final report for April 1, 2021 to March 31, 2026, the 15^th Finance Commission will consider the government's structural reforms, revenue and fiscal position and implications of GST.
The commission will submit its final report for April 1, 2021 to March 31, 2026 by October 30, 2020. On 5 December 2019, it submitted its report for FY21 (2020-21).
At its 5^th meeting, the Economic Advisory Council of Commission discussed issues like GST stabilization and compensation being paid to states.
It also discussed issues related to the relationship between the GST Council and Finance Commission.
Finance Commission:
- The Finance Commission is a constitutional body under Article 280 of the Constitution of India.
- On 27 November 2017, 15^th Finance Commission was constituted under the chairmanship of NK Singh.
- On 27 November 2019, the term for the 15^th Finance Commission was extended for the second time.

She said that India should prioritize banks clean-up, labour reforms and more ambitious fiscal consolidation path.
She said that India's focus on boosting investment, the rural economy and infrastructure spending is good.
She also said that India's focus on streamlining Goods and Services Tax (GST), direct tax reforms and a business-friendly policy to reach a USD 5-trillion economy is also good.
Gita Gopinath became Chief Economist of the International Monetary Fund in October 2018.
International Monetary Fund :
- Members: 189 countries
- Headquarters: Washington, D.C
- Formed: 1944
- It works to ensure monetary cooperation at the global level, protect financial stability and promote international trade.