Page 2 - Inflation

Stock Market Highlights: Sensex snaps 3-day winning run, ends 388pts down; IT, FMCG dip; PSBs rally

Stock Market highlights on September 19: Sectorally, the Nifty PSU Bank index outperformed, closing with gains of 1.28 per cent

BoE holds main UK interest rate at 4% with inflation above target

The Bank of England held its main interest rate at 4 per cent on Thursday as UK inflation concerns weigh on policymakers. The decision was widely anticipated, as was the split of votes on the nine-member Monetary Policy Committee. Seven of the panel backed the decision, while two voted for a quarter-point reduction to 3.75 per cent. The minutes of the meeting showed that the majority were concerned about the path for inflation, which remains stubbornly high. Figures on Wednesday showed inflation held steady at 3.8 per cent in the year to August, double the bank's 2 per cent target. Although we expect inflation to return to our 2 per cent target, we're not out of the woods yet, so any future cuts will need to be made gradually and carefully," Governor Andrew Bailey said. All eyes now turn to the next rate-setting meeting in November. If the bank carries on cutting interest rates once every three months, as it has since August 2024, then it will make a further cut in November. It las

India's wholesale inflation at 0.52% in August as food prices increase

August 2025 WPI-based inflation: The positive rate of inflation in August is primarily due to an increase in the prices of food products

Inflation targeting has worked for India, but transparency must improve

With fiscal pressures rising worldwide and monetary independence under strain, the anchor must remain

China's consumer prices drop fastest in 6 months as factory deflation eases

Weak consumer demand has weighed on China's economic growth as the property market downturn persists and US tariffs squeeze exports

India's consumer inflation likely rose in Aug, ending 9-month decline: Poll

Consumer inflation, as measured by the annual change in the Consumer Price Index (CPI), rose to 2.10 per cent in August from 1.55 per cent in July

GST reforms expected to lower inflation, create room for rate cut

A rate cut will also depend on how the central bank assesses growth, post the 50 per cent tariff imposed by the US, with the additional 25 per cent came into effect from late August

From boon to bane: How monsoon 2025 is turning into a nightmare for many

Above-normal monsoon this year has seen surge in kharif planting, driving up fertiliser demand, but heavy rains in northern states have also ruined standing crops, while floods have killed hundreds

India's GDP growth likely to stay strong in Q2FY26, say economists

Economists say the effect of a low deflator and low base is likely to boost expansion

India's inflation index to be revised every 5 years: Saurabh Garg

The new CPI series will be released by Mospi in the first quarter of 2026, with 2024 as the base year. Currently, the base year is 2012

Govt to tap Amazon, Flipkart data in inflation revamp, launch index

The move could make India's retail inflation data more robust by accounting for prices on online platforms as their share in household spending rises

Best of BS Opinion: The RBI's current policy framework has worked well

Today's Opinion Page looks at the RBI's recent discussion paper on inflation targeting, OpenAI's plans for India, the role of institutions in growth, and the recent GST rate cuts boost to growth

RBI inflation target review, liquid MFs' demand rises, S&P's sovereign rating India upgrade & more

The RBI has floated a discussion paper, seeking views on whether the 4% target should continue, if headline or core inflation should be tracked, and whether the current ±2% band should be tweaked.

Powell faces high-stakes gamble on US economy in final Jackson Hole speech

Powell's high-stakes balancing act will be on full display on Friday when he makes his final address as Fed chair to the world's leading economic policymakers

Retail inflation for farm, rural workers ease to 0.77 pc, 1.01 pc in July

Retail inflation for farm and rural workers eased to 0.77 per cent and 1.01 per cent in July from 1.42 per cent and 1.73 per cent, respectively, in June, according to data released by the Labour Ministry on Thursday. The All-India Consumer Price Index for Agricultural Labourers increased by 1.23 points to 135.31 in July 2025, while the index for Rural Labourers increased by 1.30 points, reaching 135.66, a Labour Ministry statement said. The Food Index increased by 1.94 points for Agricultural Labourers (AL) and 2.16 points for Rural Labourers (RL) in July 2025. According to the statement, the year-on-year inflation rate for agricultural labourers and rural labourers stood at 0.77 per cent and 1.01 per cent, respectively, in July 2025. The food inflation in July 2025 stood at (-) 1.56 per cent (contracted) for AL and (-) 1.13 (contracted) per cent for RL. The Labour Bureau, Ministry of Labour & Employment, releases Consumer Price Index Numbers for Agricultural Labourers and Rural .

What the revision of a 30-year-old inflation index means for rural wages

Shifting the base year for two critical inflation indices is important as they determine minimum wages for agriculture and rural workers, and could also affect payments under the MGNREGA jobs programm

Asian markets mostly higher as uptick in inflation pulls US stocks lower

Asian are mostly higher after most stocks on Wall Street fell following a disappointing report that said inflation was worse last month at the US wholesale level than economists had expected. US futures rose while oil prices slipped. China reported data showing its economy was feeling pressure from higher US tariffs in July, while property investments fell further. Retail sales rose 3.7% year-on-year, down from 4.8% in June, while investments in factory equipment and other fixed assets rose a meager 1.6%, compared with 2.8% growth in January-June. Uncertainty over tariffs on exports to the United States is still looming over manufacturers after President Donald Trump extended a pause in sharp hikes in import duties for 90 days following a 90-day pause that began in May. The Shanghai Composite index added 0.5% to 3,683.58, but Hong Kong's Hang Seng index fell 1.2% to 25,216.45. Chinese economic activity slowed across the board in July, with retail sales, fixed asset investment, an

Monsoon-induced supply disruptions hold key to vegetable inflation ahead

While the monsoon has been fairly normal so far, rain-induced supply disruptions and damage to standing crops in areas adjoining major cities has already started pushing up vegetable prices

US consumer prices up moderately in July; data quality concerns rising

The consumer price index rose 0.2 per cent last month after gaining 0.3 per cent in June, the Labor Department's Bureau of Labor Statistics said on Tuesday

US core inflation likely to increase as higher tariffs push up prices

The core consumer price index, regarded as a measure of underlying inflation because it strips out volatile food and energy costs, rose 0.3 per cent in July