& çâÌæÚUæð´ ·¤è ¥ôÚU Îð¹Ùæ ÁæÚUè ÚU¹ð´ ¥ÍæüÌ ¥ÂÙð ÜÿØ ÂÚU ŠØæÙ ÚU¹ð´Ð ãæÚU Ù ×æÙð´, €UØô´ç·¤ ·¤æ× ·¤ÚUÙð âð ¥æÂ·¤ô ©gðàØ ·¤è Âýæç# ãôÌè ãñ ¥õÚU ÁèßÙ ·¤æ ¹æÜèÂÙ ÎêÚU ãôÌæ ãñÐ ÖÜð ãè ÁèßÙ ×ð´ ç·¤ÌÙè Öè ·¤çÆÙæ§ü €UØô´ Ù ¥æ°, çÁ™ææâæ ¥õÚU ©ˆâæã ÕÙæ° ÚU¹ð´Ð ŠØæÙ ÚU¹ð´, ÜÿØ ã×ðàææ ¥æÂ·Ô¤ Âæâ ãôÌð ãñ´ çÁ‹ãð´ ÂæÙð ·Ô¤ çÜ° ÂýØæâ ¥æÂ ·¤Öè Öè àæéM¤ ·¤ÚU â·¤Ìð ãñ´Ð

Inflation to rise on fuel, water price hikes

ADB report says

STAFF CORRESPONDENT
Inflation is set to rise in the coming months on the back of fuel price and water tariff hikes, says the Asian Development Bank.
Prices of non-food items have continued to climb, up to 6.8 per cent in November from 6.4 per cent in September due to higher utility prices.
Although rice prices remained at a relatively high but stable level, prices of vegetables came down due to the increased availability of winter crop, the ADB said in its latest Quarterly Economic Update (QEU) released yesterday.
Point-to-point inflation has decreased marginally from a yearly high of 4.7 per cent in September 2002 to 4.6 per cent in November as the food price index moderated to 3.4 per cent from 3.8 per cent during this period.
"Inflation remains at almost the same level but the trend is upwards. If you visit the market, you will find about 20 per cent increase in com-
modity prices in three months," said Toru Shibuichi, country director of the ADB, at a briefing at the bank's conference room.
According to the QEU, the economy appears to be recovering from last year's slump.
Due to a steady growth in agriculture and recovery in exports, GDP growth in FY03 is likely to increase to 5.2 per cent from 4.4 per cent in FY02, it mentioned.
The industry is likely to perform strongly if exports remain buoyant and the domestic constraints solved, the QEU added.
Although the aman crop may have been affected by adverse weather, manufacturing output has picked up strongly. And the aus crop production is likely to meet the target, it said.
"Higher current prices may also act as an incentive for the boro crop in the face of a likely increase in irrigation cost due to the recent hike
FROM PAGE 1
in fuel prices. As a result, the area under boro cultivation could increase this season and agriculture growth is likely to be close to three per cent this year compared to the negative growth of last year," the ADB said.
The agricultural recovery will crucially depend on weather conditions and timely supply of inputs to farmers, it noted.
Service sector activities, particularly in trade, transport and finance, are likely to maintain steady improvement with the expected recovery in agriculture production and export-oriented manufacturing, the QEU said.
In the face of stagnation in imports and a moderate pick up in domestic economic activities, the surge in revenue collection since September 2002 has raised optimism that the ambitious revenue target in FY03 could be exceeded, it mentioned.
Revenue collection during the first six months of the year has exceeded the target. A pick-up in exports, a contraction in imports and continued strong growth in remit-
tance have led to a balance of payments surplus.
However, external reserves have leveled off in recent months and the investment climate remains weak, the QEU added.
The government will need to deal with growing infrastructure constraints, improve private sector's access to credit and address the governance issues to take full advantage of relatively strong demand for its main export in the highly competitive EU and US markets, it said.