Page 19 - Inflation

BoE keeps key interest rate at 16-year high of 5.25% despite inflation fall

The Bank of England on Thursday kept its main interest rate at a 16-year high of 5.25 per cent, even though inflation has fallen to its target of 2 per cent. In a statement, some policymakers on the bank's nine-member Monetary Policy Committee voiced worries that some underlying measures of inflation, such as in the services sector, remain elevated, which could be stoked further if interest rates are cut too soon. The decision, which was widely anticipated by economists, is likely to disappoint the governing Conservative Party ahead of the UK's general election in two weeks time. A cut would have been seized upon by Prime Minister Rishi Sunak as positive economic news.

Retail sales up 0.1% in May from Apr as still high inflation curbs spending

Consumers barely increased spending in May from April as still high inflation and high interest rates curbed spending. Retail sales rose 0.1 per cent in May, below the pace that economists projected, according to the Commerce Department. And April sales were revised downward a 0.2 per cent decline, from unchanged. Sales rose 0.6 per cent in March and 0.9 per cent in February. That comes after sales fell 1.1 per cent in January, dragged down in part by inclement weather. Excluding gas prices and auto sales, retail sales rose the same amount. Excluding sales from gasoline, whose prices have been falling, sales were up 0.3 per cent. The retail sales data offers only a partial look at consumer spending because it excludes things like travel and lodging. However at restaurants, the lone service category tracked in the monthly retail sales report, sales fell 0.4 per cent in May. Sales at clothing and accessory stores rose 0.9 per cent, while electronics and appliance stores posted a 0.

US retail sales miss expectations in May; April data revised significantly

Inflation and higher interest rates are forcing households to prioritise essentials and cut back on discretionary spending

India must avoid 'adventurism', focus on bringing down inflation: RBI chief

The central bank kept the key repo rate unchanged at 6.5% for an eighth straight policy meeting earlier this month saying robust economic growth will give it space to focus on bringing down inflation

More central banks to add to their gold reserves within 12 months: Survey

Demand for gold from central banks has been elevated in the last two years as some countries diversify their foreign currency reserves

Stock Market Highlights, June 13: Sensex, Nifty end listless session with minor gains; VIX down 6%

Stock Market Highlights on June 13: The BSE Sensex ended 204 points higher (at 76,811), while the Nifty closed 76 points up (near 23,400)

US inflation broadly cools in encouraging sign for Federal Reserve

The so-called core consumer price index - which excludes food and energy costs - climbed 0.2% from April, Bureau of Labor Statistics figures showed

Fed likely to scale back plans for rate cuts as inflation persists

Federal Reserve officials on Wednesday will likely make official what's been clear for many weeks: With inflation sticking at a level above their 2 per cent target, they are downgrading their outlook for interest rate cuts. In a set of quarterly economic forecasts they will issue after their latest meeting ends, the policymakers are expected to project that they will cut their benchmark rate just once or twice by year's end, rather than the three times they had envisioned in March. The Fed's rate policies typically have a significant impact on the costs of mortgages, auto loans, credit card rates and other forms of consumer and business borrowing. The downgrade in their outlook for rate cuts would mean that such borrowing costs would likely stay higher for longer, a disappointment for potential homebuyers and others. Still, the Fed's quarterly projections of future interest rate cuts are by no means fixed in time. The policymakers frequently revise their plans for rate cuts or hike

Govt bond yields flattish with eyes on inflation data, US Fed guidance

The central bank will auction treasury bills worth Rs 12,000 crore ($1.44 billion) later in the day

Pakistan cuts benchmark interest rate for first time in four years

The State Bank of Pakistan reduced the target rate by 150 basis points to 20.50 per cent, compared to a median estimate for a 100 basis point cut. Only two economists predicted the decision

Modi 3.0: Agri reforms, food inflation key challenges for new govt

Increased production of pulses, oilseeds, and cereals will help boost domestic supplies and contribute to keeping inflation low in the coming months

In first in 3 months, Fed dot plot set to offer glimpse of rate-cut resolve

A 41 per cent plurality of economists expect the US Fed to signal two cuts in the closely watched dot plot, while an equal number expect the forecasts to show just one or no cuts at all

Retail inflation for industrial workers declines to 3.87% in April

Retail inflation for industrial workers eased to 3.87 per cent in April compared to 4.2 per cent in March this year. Ministry of Labour and Employment has released Consumer Price Index-Industrial Workers (CPI-IW) for February, March & April, 2024 on Friday. "Year-on-year inflation for the month of March, 2024 stood at 4.20% as compared to 5.79 % in March, 2023," a labour ministry statement said. According to the statement, year-on-year inflation for the month of April, 2024 stood at 3.87 per cent as compared to 5.09 per cent in April, 2023. Year-on-year inflation for the month of February, 2024 stood at 4.90 per cent as compared to 6.16 per cent in February, 2023. The Labour Bureau, an attached office of the Ministry of Labour & Employment, has been compiling Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country. The indices for the months of February, 2024, .

German central bank warns of inflation, lowers growth forecast for 2024

The warning from Europe's biggest economy is likely to reinforce expectations that interest rates can only come down slowly. Inflation has fallen from double-digit territory in late 2022

RBI's Monetary Policy Committee second meeting of FY25 from June 5-7

A poll by Bloomberg revealed that economists expected the India's central bank to maintain the repo rate at 6.5 per cent for the eight consecutive time

US inflation increases moderately in April, consumer spending slows

The personal consumption expenditures (PCE) price index increased 0.3% last month, the Commerce Department's Bureau of Economic Analysis said on Friday, matching the unrevised gain in March

'Climate shocks' add uncertainty to inflation outlook: RBI annual report

Central bank highlights trading risks and, high reliance on bulk deposits of banks

German inflation higher than expected ahead of ECB rates decision

Economists will pay close attention to the data ahead of the release of inflation figures from the wider euro zone on Friday

Bank of Japan's underlying inflation measures all fall below 2% in April

The weighted median inflation rate, among the three indicators closely watched as a gauge on whether price rises are broadening

Sri Lanka holds rates to control inflation, foster economic stability

Incoming data suggests that headline inflation is likely to be below the targeted level of 5 per cent in the upcoming months