Consumption expenditure for the April-June quarter of 2014 saw a large drop of 19 percent on an annualized quarteron-quarter basis, reflecting the effects of the decline in demand following the front-loaded increase prior to the consumption tax hike; however, after smoothing out the fluctuations, consumption expenditure for the period of January-June 2014 compared with that of JulyDecember 2013 declined by a much slower pace of 0.8 percent.
Currently, several of administered interest rates are prescribed over a range of deposit and lending activity, roughly accounting for a third of overall banking business in India. While bank term deposit rates stand deregulated, small savings and provident funds continue to be administered, thereby imparting a degree of rigidity to the interest rate structure.