Page 2 - Inflation

RBI not in favour of rate hikes to defend rupee, prioritises inflation

India's rupee has fallen nearly 6 per cent since the Iran war began late in February and slumped to a record low of nearly 96.96 per dollar on Thursday

Crude prices could influence growth, inflation: EAC-PM chief S Mahendra Dev

EAC-PM Chairman S Mahendra Dev said higher crude prices and supply disruptions from the West Asia conflict could weigh on India's growth and inflation

India's shrinking bond yield cushion: Why the US-India spread matters

India's 10-year bond yield premium over the US has narrowed to around 250 basis points, well below its decade average. But does that mean RBI will cut rates? Let's find out

Best of BS Opinion: Govt must allow greater price adjustments

From rising oil pressures and coal gasification to urban housing reform and RBI policy, today's BS Opinion explores the economic and structural challenges shaping India's future

Is India's inflation targeting too rigid for this oil-shock climate?

A credible framework requires credible measures of price expectations

IMF backs targeted relief over broad subsidies amid oil price surge

The multilateral institution has urged governments to avoid broad-based subsidies and instead adopt targeted fiscal measures to manage inflation and protect vulnerable households

RBI likely to hold repo rate at 5.25% through FY27: India Ratings

India Ratings projects GDP growth at 6.7% and inflation at 4.4%, warning that higher crude prices and West Asia tensions may pressure growth and trade deficit

Nobel-winning economist Edmund Phelps reshaped modern thinking on inflation

The Nobel laureate's work on inflation expectations and unemployment transformed economic policymaking and influenced central banks around the world

'Fuel price hike raises inflation woes; Rupee eyes 96.80 on higher crude'

Petrol and diesel prices were raised by ₹3 per litre as Brent crude stayed above $105 per barrel. Here's how rising fuel prices could impact inflation and the rupee

'Further fuel price hikes may intensify FPI selling in Indian markets'

Elevated crude oil prices further worsen India's inflation-growth trade-off by putting pressure on the rupee, widening the current account deficit, & limiting the scope for aggressive monetary easing

MPC to look through West Asia shock if it's transitory: RBI Governor

Coordination with fiscal policy becomes critical amid 'supply shock as bad as it is', says Malhotra

US consumer inflation rises 3.8% in April, highest since May 2023

In the 12 months through April, the CPI advanced 3.8 per cent . That was the biggest year-on-year increase since May 2023 and followed a 3.3 per cent rise in March

Beyond appeals: Prices are the best way to change consumer behaviour

If the government allows prices to adjust swiftly in response to the changed supply situation, then people will automatically follow suit

China's April producer inflation hits 45-month high on energy price shock

The producer price index (PPI) increased 2.8 per cent from a year earlier, National Bureau of Statistics (NBS) data showed

FMCG firms bracing for another round of price increases amid inflation

Daily essential products such as soaps, detergents, biscuits, packaged foods, and beverages are expected to get costlier as leading FMCG companies are preparing for calibrated price hikes on account of rising crude-linked inflation, higher packaging costs, and fuel expenses from geopolitical disruptions that are squeezing margins. The executives of FMCG makers, which have already gone for recent price hikes of around 3 to 5 per cent, in their latest earnings calls have indicated either ongoing price increases or readiness to raise prices further, citing inflationary pressure arising from volatile crude oil prices, higher logistics costs, currency depreciation and disruptions in global supply chains amid geopolitical tensions. This pressure is being felt across sectors, including food, personal care, beverages and household products, as FMCG companies are attempting to balance their margins and are resorting to either price hikes or shrinking pack sizes, retaining the popular smaller

India's April consumer inflation likely rose to 3.8% on higher fuel costs

Indian companies raised prices of LPG, widely used as a cooking fuel in households, in March after the West Asia conflict disrupted energy supplies, an effect economists said likely carried into April

Asia's heat waves spell double trouble for economies hit by oil price shock

Inflation accelerated to multiyear highs across much of Asia, latest figures showed, led by higher transport, logistics and utility costs

India may consider lower inflation target, narrower band: RBI Deputy Guv

India could consider lowering the inflation target and trimming the tolerance band if GDP growth remains robust with a more stable inflation over the next five years, RBI Deputy Governor Poonam Gupta said on Tuesday. However, if the global environment remains as challenging as it has been during the past six years, it would warrant both predictability and flexibility inherent in the existing framework, she said. The government, after consultation with the RBI, has notified the inflation target framework for a five year period through March 31, 2031. As per the framework, the Reserve Bank has to keep inflation at 4 per cent (+/-2 per cent) from FY27-FY31. Speaking at an NCAER seminar, Gupta said the future of the inflation targeting framework in India would depend on the combination of inflation and growth outcomes as they evolve during the next five years. Also, the future inflation targeting framework would have to take into account the global shocks that the economy may have to

Hidden cost of war on wealth: Capital compounding may be less forgiving

Instead of panic, respond with preparedness; keep separate money pools of money for short-, medium-, and long-term needs

Best of BS Opinion: India's FTA with New Zealand shows agile deal-making

From India's FTA strategy and Sun Pharma's global ambitions to LPG shortages, West Asia risks and Asean ties, here are the key insights from today's Opinion page