Page 130 - Latest Updates on Inflation
BS Policy poll: Pause for sure, liquidity to be back in focus at RBI
The apex bank would still like to drain out some liquidity while managing yields through OMO or operation twist, to fend off inflation, especially when rate hikes seem distant
 "BS Policy poll: Pause for sure, liquidity to be back in focus at RBI")
Expect RBI to keep accommodative stance at least till first half of FY22
We think the MPC could express its willingness to maintain the accommodative monetary stance at least till H1FY22, which should help sentiments
 "Expect RBI to keep accommodative stance at least till first half of FY22")
India's $950 bn bond market faces pivotal week ahead of Budget, RBI meeting
The RBI refrained from draining excess cash in its December review as it didn't see ample liquidity, which crashed short term rates, fueling inflation
 "India's $950 bn bond market faces pivotal week ahead of Budget, RBI meeting")
Exploring indexing annuity rates to inflation or G-secs: Irdai Chairman
Annuity products may switch to floating rates from fixed, which generally give lower returns to customers
 "Exploring indexing annuity rates to inflation or G-secs: Irdai Chairman")
Farming share in GDP may rise about 18% in FY21, but will the tiller gain?
Provisional data shows that inflation impact in 2020-21 is expected to be about 3.9%, down from 7.4% in 2019-20
 "Farming share in GDP may rise about 18% in FY21, but will the tiller gain?")
RBI may not cut rates despite drop in retail inflation: Motilal Oswal
The Reserve Bank of India (RBI) is unlikely to further ease the interest rates in the next meeting of its Monetary Policy Committee even though retail inflation declined in December 2020, a report by
 "RBI may not cut rates despite drop in retail inflation: Motilal Oswal")
Fall in food prices helps retail inflation ease to 4.6% in December
After a year of high inflation-low growth, a sharp dip in food inflation tames the headline number
 "Fall in food prices helps retail inflation ease to 4.6% in December")
Sensex up 248 pts at 49,517; Nifty at 14,563; SBI, Airtel soar 4%, RIL 3%
Stock market updates: Nifty PSU Bank index surged over 6 per cent and was the top sectoral gainer
 "Sensex up 248 pts at 49,517; Nifty at 14,563; SBI, Airtel soar 4%, RIL 3%")
As inflation slows, RBI resumes monetary easing, defends policy framework
The price moderation couldn't come at a better time for central bank Governor Shaktikanta Das, with the inflation targeting mechanism that's been in place since 2016 coming up for review this year
 "As inflation slows, RBI resumes monetary easing, defends policy framework")
Peering into 2021
Macroeconomics in 2021 will turn on consumer demand and firm resolution
 "Peering into 2021")
Flexible inflation targeting: Fix the underlying first - it is broken
The RBI must push the government to put the periodical rebasing of the CPI into the inflation targeting agreement
 "Flexible inflation targeting: Fix the underlying first - it is broken")
Retail inflation for industrial workers eases to 5.27% in November
Retail inflation for industrial workers eased to 5.27 per cent in November compared to 5.91 per cent in October, mainly due to lower prices of certain food items
 "Retail inflation for industrial workers eases to 5.27% in November")
Yes, it's not broken
Govt and RBI should fix potential policy risks to inflation
If it ain't broke, don't fix it: RBI working paper on 4% inflation target
Working papers don't necessarily reflect RBI's views, but invariably end up doing just that. This paper, by H K Behera and Michael Patra, could be one such
 "If it ain't broke, don't fix it: RBI working paper on 4% inflation target")
Maintaining 4 per cent inflation appropriate for India: RBI paper
Maintaining 4 per cent inflation is appropriate for India as targeting a lower rate could impart deflationary bias to the monetary policy, said a Reserve Bank paper.
 "Maintaining 4 per cent inflation appropriate for India: RBI paper")
Prices of TV and appliances likely to go up by around 10% from January
Prices of TV panels (Opencell) have also gone up by over two-folds due to short supply by the global vendors, while cost of plastic has also gone up due to rise in crude oil prices, said manufacturers
 "Prices of TV and appliances likely to go up by around 10% from January")
Economy recovering faster than expected, inflation needs to be tackled: RBI
The National Statistical Office's (NSO) end-November release showed that the Covid-19 pandemic imposed retrenchment of the first quarter was much shallower in the second quarter
 "Economy recovering faster than expected, inflation needs to be tackled: RBI")
Top factors that will shape trajectory of Indian markets in 2021
The top three Covid-19 vaccines that are currently awaiting the government's approval in India are: Pfizer and BioNTech, Oxford-AstraZeneca and Bharat Biotech's Covaxin
 "Top factors that will shape trajectory of Indian markets in 2021")
MPC members dive deep on low rates, excess liquidity and sticky inflation
These issues weren't discussed in such details in policy statement, or in post-policy press conference, even when the members seemingly unanimously voted to keep policy rate unchanged at 4%
 "MPC members dive deep on low rates, excess liquidity and sticky inflation")
Retail inflation for agricultural labourers eases to 6% in November
This was mainly due to lower prices of food items
 "Retail inflation for agricultural labourers eases to 6% in November")