Page 91 - Latest Updates on Inflation
Best of BS Opinion: The inflation spectrometer, dial down rhetoric & more
Here are the top BS Opinion articles of the day
 "Best of BS Opinion: The inflation spectrometer, dial down rhetoric & more")
The inflation spectrometer
Even as some inflationary impulses fade, others of more recent vintage pose new and bigger risks; one must disentangle multiple strands to reduce risk of policy errors
 "The inflation spectrometer")
Sri Lanka holds its breath as PM Wickremesinghe fights to save economy
Sri Lankans are struggling to access the bare necessities like food, fuel, medicine, cooking gas and even toilet paper and matches.
 "Sri Lanka holds its breath as PM Wickremesinghe fights to save economy")
Rate hike for sure, but by how much, Governor?
It's time the central bank talked about 'appropriate' liquidity instead of 'adequate' liquidity
 "Rate hike for sure, but by how much, Governor?")
Inflation: How bad for stocks?
If monetary tightening affects discretionary spending (of the middle class and the poor) and non-essential assets mainly, how will demand for the essential items shrink?
 "Inflation: How bad for stocks?")
After the rate hike
Policy will depend on RBI's inflation projection
 "After the rate hike")
Demand falls as price hike forces consumers to go for smaller packs
Sales in urban areas in May were down 16 per cent and those in rural parts 16.6 per cent (against April)
 "Demand falls as price hike forces consumers to go for smaller packs")
Pakistan's May inflation highest since 2020; FM blames Imran govt
In May, the cash-starved South Asian nation's consumer price index (CPI) stood at 13.76 per cent -- the highest in two and half years
PMI: Service activity touches 11-year high of 58.9 in May on strong demand
Overall demand rose at the fastest pace since July 2011 as economic activity continued to normalise with the lifting of pandemic restrictions
 "PMI: Service activity touches 11-year high of 58.9 in May on strong demand")
S Korea's inflation nears 14-yr high in May on high energy, food costs
South Korea's inflation growth hit a nearly 14-year high in May due to high energy and food costs due to the ongoing war between Russia and Ukraine and the economic recovery
 "S Korea's inflation nears 14-yr high in May on high energy, food costs")
US technology sector sees record job cuts in May amid rising inflation
It is the highest monthly total since December 2020 when tech companies cut as many as 5,253 jobs
 "US technology sector sees record job cuts in May amid rising inflation")
Policy tightening to pressure FY23 numbers, deficit seen at 6.7%: Report
The government has pegged the combined fiscal shortfall at 9.8 per cent of which the central deficit is seen at 6.4 per cent (down from 6.7 per cent in FY22) and states' at 3.4 per cent for FY23.
 "Policy tightening to pressure FY23 numbers, deficit seen at 6.7%: Report")
Rising tomato prices: Next big risk to India's fight against inflation?
The average retail price of tomatoes in India has jumped 70% from a month ago and 168% from a year earlier to Rs 53.75 a kilogram as of Tuesday
 "Rising tomato prices: Next big risk to India's fight against inflation?")
India's FMCG sector grows at 6% in Q4; volumes contract on low consumption
The overall volume degrowth in India's FMCG sector was spread across categories, but the extent was significantly higher in non-food compared to food
 "India's FMCG sector grows at 6% in Q4; volumes contract on low consumption")
Manufacturing PMI steadies in May on increased orders despite inflation
PMI manufacturing was recorded at 54.6 in May, a minor change from 54.7 in April
 "Manufacturing PMI steadies in May on increased orders despite inflation")
Limited downside in markets provided inflation remains in check: Analysts
Peaking of inflation, analysts believe, could put a cap on bond yields and a floor on equity valuations
 "Limited downside in markets provided inflation remains in check: Analysts")
How RBI missed the inflation surge
The RBI did most of the heavy-lifting in the initial phase of the pandemic but was slow in unwinding the policy accommodation as economic reality changed
Pakistan inflation climbs to 13.8% in May on rising food and fuel prices
Food prices surged 17.3%, while transport costs surged 31.8%, the data showed
 "Pakistan inflation climbs to 13.8% in May on rising food and fuel prices")
Germany's Scholz seeks broad alliance with unions to curb inflation
These price increases are probably still down to one-time shocks, but we must take care that this doesn't turn into a long-term development with excessive inflation rates, Scholz told
 "Germany's Scholz seeks broad alliance with unions to curb inflation")
Q4 GDP numbers a positive surprise with growth coming in at 4.1%
The implicit inflation in FY22 works out at 10 per cent, with the nominal GDP growth at 19.5 per cent
 "Q4 GDP numbers a positive surprise with growth coming in at 4.1%")