The current inflation-targeting regime should be suitably updated, but it should remain the framework for India's monetary policy for the foreseeable future
Policymakers led by Governor Tiff Macklem are expected to lower the benchmark overnight rate to 4.25 per cent at their Sept. 4 meeting
Brent rose 51 cents to $79.53 a barrel, while U.S. crude added 50 cents to $75.33 per barrel
High food inflation can lead to the unanchoring of inflation expectations, which could significantly complicate overall inflation management
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
The steady progress in the southwest monsoon has supported summer sown crops, finance ministry said in its monthly economic report
Soaring food prices this summer present an additional headache for the world's second-largest economy, which is already wrestling with thorny problems from sluggish factory output and joblessness
Officials are depressingly hesitant to touch anything to do with food production and prices, since these are particularly sensitive politically
The report from the Labor Department on Tuesday also showed favorable readings for most of the components that go into the calculation of the personal consumption expenditures
The South Asian nation - where nearly half the population survives on less than $4 a day - has seen electricity prices surge 155 per cent since 2021
Food inflation remained declined to 5.42 per cent in July from 9.36 per cent in June
Market participants expect the benchmark yield to open around 6.85 per cent on Tuesday
The rupee has struggled over the last two weeks amid outflows from local stocks
The RBI last week kept the key interest rate unchanged, retaining its focus on bringing inflation down
The respite follows a tumultuous week that began with a massive selloff across currencies and stock markets
Dimon has been warning for more than a year that inflation may be stickier than investors expect
Nikhil Gupta, Chief Economist, MOFSL Group said what probably was more important was the Governor's emphasis on headline inflation and the focus on inflation deceleration when growth remains so good
Rising food costs, especially for vegetables, and hikes in telecom tariffs last month were offset by a higher base from July last year
The Reserve Bank is expected to hold its key rates at the forthcoming policy review, but may sound more confident about reaching its 4 per cent inflation objective, a foreign brokerage said on Wednesday. The rate-setting panel may prefer to stick to the 'withdrawal of accommodation' stance of the monetary policy, HSBC said in the report on the eve of the RBI MPC's decision. "While it's a close call, we also think the policy stance will remain unchanged, even as the RBI sounds more confident than before about getting to its 4 per cent inflation target," it said, listing out the aspects it will watch out for in the document or the resolution. These include any softness in tone around increased confidence of getting to 4 per cent inflation durably, or a change in growth or inflation forecasts, and, further commentary around the use of OMO (open market operations) sales to take out excess liquidity. In the background of another member dissenting at the last policy review, the brokerage
The Aug. 2-7 poll of 36 economists forecast the consumer price index rose at an annual rate of 3.65 per cent last month, down sharply from 5.08 per cent in June