Page 32 - Latest Updates on Inflation
Sensex ends 308 pts lower post RBI policy, Nifty near 19,550; Zee zooms 20%
CLOSING BELL ON AUGUST 10, 2023: Private bank and select auto stocks ended with notable losses after the RBI on Thursday asked banks to maintain Incremental Cash Reserve Ratio (ICRR) at 10 per cent.
 "Sensex ends 308 pts lower post RBI policy, Nifty near 19,550; Zee zooms 20%")
India starts importing tomatoes from Nepal amid record spike in prices
The first lot of imports are likely to reach by Friday in Varanasi, Lucknow and Kanpur cities in northern India, Finance Minister Nirmala Sitharaman told the parliament
 "India starts importing tomatoes from Nepal amid record spike in prices")
Bajaj Electricals Q1 profit falls as unseasonal rains, inflation hit demand
Consolidated net profit was 371.3 million rupees ($4.49 million) for the three months ended June 30, compared with 429.6 million rupees a year earlier
 "Bajaj Electricals Q1 profit falls as unseasonal rains, inflation hit demand")
High fruit prices may likely increase food inflation further in 2023
The late arrival of monsoon and heavy monsoon rains have impacted crops, which led to higher prices
 "High fruit prices may likely increase food inflation further in 2023")
Tomato woes: MPC pegs inflation at over 6 per cent in current quarter
Inflation unlikely to fall to 4% target even in Q1 FY25; GDP growth projections kept intact
 "Tomato woes: MPC pegs inflation at over 6 per cent in current quarter")
RBI retains FY24 GDP forecast at 6.5%, raises inflation projection to 5.4%
"Headwinds from weak global demand, volatility in global financial markets, geopolitical tensions and geoeconomic fragmentation, however, pose risks to the outlook," Das said
Rupee eyes RBI monetary policy decision, US inflation data to follow
Non-deliverable forwards indicate the rupee will open barely changed to the U.S. dollar from 82.8150 on Wednesday. In the last two sessions, the currency has been in the range of around six paisa
 "Rupee eyes RBI monetary policy decision, US inflation data to follow")
Disinflation spreads across several emerging markets and selloff deepens
In Hungary, which has the highest interest rate in the European Union, inflation dipped below 20% for the first time in 11 months. The government expects the rate to fall below 10% by October
 "Disinflation spreads across several emerging markets and selloff deepens")
A veg thali cost 28% more in July than June, thanks to tomatoes: CRISIL
A veg thali comprises roti, vegetables (onion, tomato, and potato), rice, dal, curd, and salad
 "A veg thali cost 28% more in July than June, thanks to tomatoes: CRISIL")
Pakistan's inflation touches 29.8% amid rise in food, energy prices
Out of these commodities, the price of milk, sugar, and firewood went up; wheat flour and vegetable ghee decreased; whereas prices of long cloth, and electricity remained unchanged
 "Pakistan's inflation touches 29.8% amid rise in food, energy prices")
ECB's Philip lane sees inflation slowing significantly later this year
While price pressures won't hit the ECB's goal until sometime in 2025, the recent decline in energy will reduce costs across the economy before long, he said in a podcast produced by the central bank
 "ECB's Philip lane sees inflation slowing significantly later this year")
Bank of England raises interest rate to new 15-year high to fight inflation
The Bank of England raised its main interest rate on Thursday to a fresh 15-year high as it tries to bring down persistently high inflation
 "Bank of England raises interest rate to new 15-year high to fight inflation")
Fitch downgrades US' rating: How soon can the markets recover?
Stock markets, analysts suggest, are impacted by unexpected events and see a knee-jerk reaction. When market valuations are high, the sell-off, they say, will be sharp
 "Fitch downgrades US' rating: How soon can the markets recover?")
Erratic rainfall may lead to higher inflation in near term: BoB research
"This is expected to translate into a higher inflation in the near term, as IMD expects El Nino conditions will develop in the middle of the monsoon period", the report said
 "Erratic rainfall may lead to higher inflation in near term: BoB research")
Short-term inflation in Pak stays above 29% as electricity, LPG price hikes
The short-term inflation on a week-on-week basis measured by the Sensitive Price Index (SPI), rose 3.73 per cent which marks the highest increase in the past two months
 "Short-term inflation in Pak stays above 29% as electricity, LPG price hikes")
How should Japan respond to inflation?
Japan should view today's inflation as an opportunity to break its deflationary equilibrium and raise inflation expectations
 "How should Japan respond to inflation?")
Vegetables in India to stay expensive for longer on erratic monsoon
Vegetables prices, which have a 6% weighting in the overall consumer price index (CPI), hit a seven-month high in June, rising 12% month-on-month, official data shows
 "Vegetables in India to stay expensive for longer on erratic monsoon")
Fed hikes rates to highest level in 16 years at 5.25%-5.5% citing inflation
The rate hike, the Fed's 11th in its last 12 meetings, set the benchmark overnight interest rate in the 5.25%-5.50% range, and the accompanying policy statement left the door open to another increase
 "Fed hikes rates to highest level in 16 years at 5.25%-5.5% citing inflation")
Q1 a washout, exporters pin hope on North America for a turnaround
Slowdown in key economies, as well as geopolitical tensions resulted in sluggish demand for Indian goods
 "Q1 a washout, exporters pin hope on North America for a turnaround")
Inflation bites off Jubilant Food's Q1 profit; analysts serve earnings cut
What's also worrying the Street is the likelihood of a dismal Q2FY24 performance, which they feel will be marred by soaring milk, cheese and vegetable prices, and an embargo on Ukraine's wheat exports
 "Inflation bites off Jubilant Food's Q1 profit; analysts serve earnings cut")