Page 135 - Latest Updates on Inflation
RBI monetary policy: Rates on hold amid uneasiness on inflation
The committee highlighted that inflation risks emanate from supply chain disruptions, high vegetable prices, increased taxes on fuels, and volatility in financial markets
 "RBI monetary policy: Rates on hold amid uneasiness on inflation")
Statsguru: Inflation to bond yields, key data ahead of MPC meeting
While the economy battling with the pandemic shock needs support, inflation continues to remain above the central bank's target band
 "Statsguru: Inflation to bond yields, key data ahead of MPC meeting")
Dusting off the inflation cap
The popular narrative on inflation is that the rise was because production and distribution had ceased due to the pandemic, leaving too many buyers chasing too few goods
Policy prudence
RBI should guard against risks to financial stability
 "Policy prudence")
RBI's Hamletian dilemma
The relationship between monetary policy and inflation is not reliable in a crisis, creating a classical problem for the central bank
 "RBI's Hamletian dilemma")
With inflation in India ticking higher it may be time for RBI to pause
Some economists and market insiders argue it may be prudent for the MPC, the policy committee, to hold its fire when it meets early next month
 "With inflation in India ticking higher it may be time for RBI to pause")
The end of food inflation?
Improving efficiency in producing and converting edible calories when demand weakens could throw new social challenges
 "The end of food inflation?")
Economy in Modi 2.0: A year best forgotten as things turn bad to worse
Even before the lockdown, the economy was on the downhill despite the Centre announcing huge corporation tax cuts
 "Economy in Modi 2.0: A year best forgotten as things turn bad to worse")
Data deficiency
Quality of numbers could affect economic policy response
 "Data deficiency")
Country sees world's highest inflation during 2020: State Bank of Pakistan
January witnessed a 12-year high inflation at 14.6 per cent. In response to the rising prices, the SBP rose the interest rates to 13.25 per cent
 "Country sees world's highest inflation during 2020: State Bank of Pakistan")
Limited impact
Interest rate reduction may not push credit offtake
 "Limited impact")
Inflation should be managed carefully
It's one of those rare periods where deflation is also possible. The RBI may have to adjust money supply in either direction
Last rate cut for now but there're more bullets in RBI's chamber
Following this, the reverse repo rate, or the rate at which the banks perk extra liquidity with the RBI, was reduced to 3.35 per cent from 3.75 per cent - both at their historic lows.
 "Last rate cut for now but there're more bullets in RBI's chamber")
Covid-19 has created deflationary conditions, says CEA Subramanian
He also said that a good part of the Rs 20 trillion stimulus package is designed in a manner that the fiscal deficit remains under control.
 "Covid-19 has created deflationary conditions, says CEA Subramanian")
Covid-19 impact: Centre releases truncated WPI inflation data for April
Reports 10.12% deflation in fuel, power basket
 "Covid-19 impact: Centre releases truncated WPI inflation data for April")
Covid-19: At Rs 43.5 trn by March, Indian households' debt at record high
Indian households had debts worth nearly Rs 43.5 trillion at the end of March this year, up from Rs 6.6 trillion at the end of March 2008 and Rs 19.3 trillion five years ago at the end of FY15
 "Covid-19: At Rs 43.5 trn by March, Indian households' debt at record high")
RBI has made life a bit easier for NBFCs, MFIs amid Covid-19 pandemic
The RBI has indicated that it expects inflation to come down by September, which means that more rate cuts are in the offing
 "RBI has made life a bit easier for NBFCs, MFIs amid Covid-19 pandemic")
RBI measures sufficient, not substantial; Guv doing balancing act: Experts
RBI governor is walking a tightrope, says a former chief statistician
 "RBI measures sufficient, not substantial; Guv doing balancing act: Experts")
NSO struggles to gather accurate inflation, industrial data during lockdown
Monthly price data is collected from 1,114 markets across 310 towns by the field operations division of the statistics ministry and the specified
 "NSO struggles to gather accurate inflation, industrial data during lockdown")
'Covid-19 hangs over future like spectre': RBI in Monetary Policy Report
While efforts are being mounted on a war footing to arrest its spread, Covid-19 would impact economic activity in India directly through domestic lockdown, the central bank has said
 "'Covid-19 hangs over future like spectre': RBI in Monetary Policy Report")