Page 4 - Consumer Price Index

'MGNREGS wage hike based on Consumer Price Index for Agricultural Labour'

Amid criticism over low rate of hike in MGNREGS wages, sources on Friday said the increase was calculated on the basis of Consumer Price Index for Agricultural Labour, which rose by around 7.7 per cent since last year. The Rural Development Ministry had notified new wage rates under the MGNREGS on Wednesday, with hikes ranging between four and 10 per cent for different states, and an overall national average of around seven per cent. Sources from the ministry said the central government has indexed the wage rate under the MGNREGS with the Consumer Price Index for Agricultural Labour (CPI-AL) to compensate the workers against inflation. Relevant data on CPI-AL was taken from the Labour Bureau, Shimla and the revisions were done on the basis of changes in CPI-AL and as per section 6(1) Mahatma Gandhi NREGA Act 2005. The wages were revised on the basis of a formula where the proposed wage rate is equal to last year's wage rate, multiplied by the quotient of CPI-AL for December 2023 ..

Wholesale inflation eases to 0.2% in Feb, food inflation rises marginally

The wholesale price index (WPI)-based inflation eased in January to 0.2 per cent from 0.27 per cent in the preceding month. The WPI inflation was in the negative zone from April to October and had turned positive in November at 0.26 per cent. "The annual rate of inflation based on all India Wholesale Price Index (WPI) number is 0.20 per cent (provisional) for the month of February, 2024 (over February, 2023)," the commerce and industry ministry said in a statement on Wednesday. Food inflation moved up marginally to 6.95 per cent in February from 6.85 per cent in January, data showed. Inflation in vegetables was 19.78 per cent, up from 19.71 in January. The WPI inflation in pulses was at 18.48 per cent in February compared to 16.06 in January.

CPI-based inflation eases to 5.09% in Feb; Jan IIP growth at 3.8%

Food and beverage recorded an inflation of 8.66 per cent vs 8.3 per cent in January 2024

US inflation increases in line with June interest rate cut expectations

That was the smallest year-on-year increase since February 2021 and followed a 2.6% advance in December

Retail inflation for industrial workers eases to 4.59% in January

Retail inflation for industrial workers eased to 4.59 per cent in January compared to 4.91 per cent in December 2023 mainly due to lower prices of certain food items. Food inflation stood at 7.66 per cent in January 2024 against 8.18 per cent in December 2023. Food inflation was 5.69 per cent in January 2023 a year ago, a labour ministry statement said. Retail inflation based on the consumer price index for industrial workers (CPI-IW) was 6.16 per cent in January 2023. The All-India CPI-IW for January 2024 increased by 0.1 point to 138.9 points from 138.8 points in December 2023. The maximum upward pressure in the current index came from the Housing group contributing 0.48 percentage points to the total change. At the item level, House rent, Ladies Suiting, Casual wear, Saree Cotton, Woolen Sweater/Pull-over, Plastic/PVC Shoes, Tailoring Charges/Embroidery, Chewing Tobacco, Foreign/Refined Liquor, Pan Masala, etc. are responsible for the rise in the index. However, it stated that

Consumption survey: No definitive trend yet

The monthly per capita expenditure data points to shifts in consumption, but it should not be used for reconfiguring the Consumer Price Index

Govt to conduct another household survey before changing CPI: Report

The findings could lead to a decrease in the weighting of food in the CPI, which is used by the central bank to frame monetary policy

Retail inflation cools to 3-mth low of 5.1% in Jan, IIP grows 3.8% in Dec

The growth rate in the IIP slightly increased to 3.8 per cent in December from 2.4 per cent in November on the back of improvement in the performance of the manufacturing sector (3.9 per cent)

China's consumer prices suffer steepest fall in more than 14 years

Citigroup economists said in a research note last week that they expect mild reflation in 2024, and forecast annual CPI inflation at 1.2 per cent year-on-year

Opt for long-duration, gilt funds to gain from interest rate cuts

Go for the flexibility of dynamic bond funds if you are unsure about direction of rates

Bond market expects RBI to change policy stance in February review

Continuous VRR indicates accommodative approach on liquidity

Invest in longer-duration funds to gain from anticipated rate cuts

But avoid going overboard with exposure as unforeseen events could prevent inflation from softening

Big UK inflation drop bolsters bets on Bank of England cuts early next year

The annual rate of increase in consumer prices dropped to 3.9% from 4.6% in October, pushed down in part by cheaper petrol, for its lowest reading since September 2021

Objective of durably aligning inflation with target far from assured

The target for the central bank is to maintain inflation at 4 per cent, with a band of 2 per cent on either side

Expanding RBI's toolkit

Machine learning can improve inflation forecasting

Rupee ends 1 paisa lower at 83.38 against dollar ahead of US CPI data

The rupee closed at 83.3875 against the U.S. dollar, barely changed from its close at 83.3925 in the previous session. The unit hovered between 83.36 and 83.39 on Tuesday

Rural retail inflation higher than urban in 18 of the past 22 months

In October 2023, rural inflation stood at 5.12 per cent against urban inflation at 4.62 per cent

Retail inflation falls again in October, hits 5-month low of 4.87%

Food inflation remained sticky as it slightly moderated to 6.61 per cent in October from 6.62 per cent in September due to the prices of items within the category cancelling each other out

Sept retail inflation at 3-mnth low of 5.02%; Aug IIP growth rises to 10.3%

Food inflation also declined to a three-month low of 6.56 per cent in September from 9.94 per cent in August

US consumer prices rise on surge in rents, underlying inflation cools

Weekly jobless claims unchanged at 209,000