Page 14 - Latest Updates on Inflation
Inflation in Europe falls below 2%, paves way for faster interest rate cuts
Tuesday's official figure coupled with an anemic growth outlook could pave the way for faster interest rate cuts from the ECB, which has already trimmed rates twice
 "Inflation in Europe falls below 2%, paves way for faster interest rate cuts")
Monetary policy needs recalibration due to domestic reasons, not the Fed
Early reports suggest softer consumer demand at the beginning of the festive season, with discounts and incentives offered by automakers and online platforms to boost sales and clear inventory
 "Monetary policy needs recalibration due to domestic reasons, not the Fed")
Fed drives global push to cut rates despite uncertainties over 2025
Whatever happens, a sustained period of central bank activism, in contrast to the recent hiatus of higher-for-longer rates, is likely to take hold
 "Fed drives global push to cut rates despite uncertainties over 2025")
Time for private investment is now; delays risk economic competitiveness
Despite softening inflation, the degrees of freedom for the central bank to reduce interest rates might decrease, due to higher government borrowing to keep pump-priming the economy
 "Time for private investment is now; delays risk economic competitiveness")
WPI inflation drops to 4-month low of 1.31% in Aug on lower prices
Food price comes in at 3.11%, compared to 3.45% in July, according to government data
 "WPI inflation drops to 4-month low of 1.31% in Aug on lower prices")
Rate cut hinges on inflation trajectory: RBI Governor Shaktikanta Das
Rupee strength driven by strong fundamentals, not artificial intervention: RBI guv
 "Rate cut hinges on inflation trajectory: RBI Governor Shaktikanta Das")
Have distance to cover on inflation, can't look other way: RBI Governor
Central bank in no rush to cut rates as projections say inflation is moderating, says Shaktikanta Das
 "Have distance to cover on inflation, can't look other way: RBI Governor")
Pakistan central bank's MPC cuts key policy rates by 200 bps to 17.5%
The State Bank in a statement said that the Monetary Policy Committee (MPC) decided to reduce the policy rate by 200 basis points (bps) to 17.5 per cent in its meeting on Thursday
 "Pakistan central bank's MPC cuts key policy rates by 200 bps to 17.5%")
Inflation likely held below RBI's target at 3.5% again in Aug, finds survey
Although food prices, which make up nearly half the inflation basket, have eased significantly in the last two months, erratic monsoon rains across India could harm crop yields
 "Inflation likely held below RBI's target at 3.5% again in Aug, finds survey")
Inflation debate must consider downsides of alternative frameworks
To be fair, the RBI or the MPC on its own cannot change the target or stop taking into account one part of the consumer basket without appropriate amendment to the RBI Act
 "Inflation debate must consider downsides of alternative frameworks")
ECB at risk of becoming too restrictive, cuts interest rates: Cipollone
"The data so far confirms our direction of travel and I hope that they will allow us to continue to be less restrictive," Cipollone told Le Monde in an interview
 "ECB at risk of becoming too restrictive, cuts interest rates: Cipollone")
Lenders' deposit shortage could put speed limit on credit-fueled investment
The govt is making the deposit crunch worse by taxing savers aggressively, but keeping the proceeds away from the financial system. Bankers are compounding the problem by not paying enough to savers
 "Lenders' deposit shortage could put speed limit on credit-fueled investment")
Oil goes higher as halted Libyan exports levels expected Opec+ supply boost
News of increased production helped push oil prices lower last week but the scale of the sell-off was overdone, said Phil Flynn, an analyst at Price Futures Group
 "Oil goes higher as halted Libyan exports levels expected Opec+ supply boost")
Pakistan inflation ceases further in Aug providing room for more rate cuts
Pakistan's central bank has slashed rates by a cumulative 250 basis points in the last two meetings and is scheduled to hold the next review on Sept 12
 "Pakistan inflation ceases further in Aug providing room for more rate cuts")
Donald Trump vows to tackle inflation, corruption at Pennsylvania rally
Trump said that he will work towards making the country a dominant energy producer in the world and claimed the country will experience a reduction in energy costs
 "Donald Trump vows to tackle inflation, corruption at Pennsylvania rally")
Inflation targeting: Why modifying the approach may be counterproductive
The current inflation-targeting regime should be suitably updated, but it should remain the framework for India's monetary policy for the foreseeable future
 "Inflation targeting: Why modifying the approach may be counterproductive")
Bank of Canada may cut interest rates deeper, faster over next year
Policymakers led by Governor Tiff Macklem are expected to lower the benchmark overnight rate to 4.25 per cent at their Sept. 4 meeting
 "Bank of Canada may cut interest rates deeper, faster over next year")
Asia shares edge up ahead of inflation data today, oil price gains
Brent rose 51 cents to $79.53 a barrel, while U.S. crude added 50 cents to $75.33 per barrel
 "Asia shares edge up ahead of inflation data today, oil price gains")
Why RBI cannot ignore food price pressures in overall inflation management
High food inflation can lead to the unanchoring of inflation expectations, which could significantly complicate overall inflation management
Who has won the inflation debate - Team Transitory or Team Permanent?
The rift between those who said inflation was transient and those who thought it permanent partly reflected differences over what caused prices to rise in the first place
 "Who has won the inflation debate - Team Transitory or Team Permanent?")