On the evidence at hand, inflation targeting works only when the world economy is normal, and demand swings up and down in small cycles that monetary policy tackles, writes T N Ninan
Retail inflation eased to a three-month low in September on the back of softer vegetable prices, but remained above a 4% target that the central bank has signalled would be key before easing rates
Food inflation fell to 6.56 per cent in September against 9.67 per cent in August
Resilient demand in the world's largest economy, bolstered by unrelenting job growth, has complicated Federal Reserve efforts to get inflation down to its preferred level
The surge in the headline CPI inflation has expectedly proved to be transient. The print had cooled off to 6.8 per cent in August 2023 from the 15-month high of 7.4 per cent in July
Rural inflation was on the higher side at 7.02 per cent, compared to urban inflation at 6.59 per cent in August
The work on appropriate weights of various items could be completed once the household consumption expenditure survey is out
Closing Bell on September 12, 2023: Among sectors, the Nifty Media index declined nearly 4 per cent, the Nifty Metal index nearly 3 per cent, and the Nifty PSU Bank and Auto indices up to 2.5 per cent
CPI inflation: This is the highest retail inflation since April 2022 when it was recorded at 7.79 per cent
Monetary policy has made significant progress towards price stability; the recent spike in CPI inflation is expected to be short lived, going by past trends
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.
Despite the current surge in CPI inflation, bulk of the rise came from food prices rather than in a broad-based fashion
India's improved monsoon performance, continued expansion in manufacturing, and vigorous capital expenditure spending by the public and private sectors augur well for macroeconomic stability and growth during FY24, the finance ministry said in a report. However, it cautioned that cross-border spillovers and adverse global developments can act anytime as a deterrent to achieving the potential high growth path in the current financial year. The government's emphasis on capex in recent years has given a much-needed thrust to investments in key infrastructure, which has resulted in crowding in of private investment to kickstart the virtuous circle of job creation, income, productivity, demand, and exports supported by favourable demographic dividend over the coming years, said the June edition of the Finance Ministry's Monthly Economic Review. As per Axis Bank Business and Economic Research, Capex by the Corporate sector increased by 22.4 per cent in FY23 compared to the last year, driv
CPI-based inflation rate increased to 4.8 per cent in June 2023, from 4.3 per cent in May, primarily on account of an increase in food inflation
Another worry for the RBI and the markets are the monsoons back home (intensity and spatial distribution)
The IIP growth rate for the month of May came at 5.2%, according to the government release
It was for the second month in a row that retail inflation remained within the RBI's comfort zone of below six per cent
CLOSING BELL ON JUNE 12, 2023: The Nifty reclaimed the 17,600 level; In the broader market, BSE Midcap index advanced 0.5 per cent, and Smallcap added 0.7 per cent on Monday.
'Banks have been cautious. I think there is still some amount of liquidity sitting there', said Das
Economic growth projections were retained at 6.5%, with first two quarters expected to deliver slightly more. Second half likely to yield moderately less pace of growth than assessed in April