Page 24 - Inflation

Above normal monsoon in 2024 can ease pressure on food prices, says RBI

The report said that in the current economic landscape, several positive factors are contributing to a promising outlook

Silver outlook, June 26: Bias bearish; MCX Sept contract support at Rs 88k

Silver outlook and trading strategy today, June 26, 2024: Spot Silver, at the time of the MCX closing, was trading at $28.90, down 2.45 per cent for the day on Tuesday

India's inflation also K-shaped; villagers more hurt by price-rise: HSBC

Just like the post-pandemic recovery, the Indian inflation story is also 'K-shaped' and is hurting certain sections more than others, a foreign brokerage said on Tuesday. Rural consumers are more impacted by price-rise than their urban counterparts, economists at HSBC said, adding it outstripped the urban segment by 1.1 percentage point in May, mainly due to higher food inflation. "The same developments, driving a K-shaped recovery, seem to be driving K-shaped inflation dynamics," they said in a report. The report by its chief economist Pranjul Bhandari cited the ongoing heat waves, pointing out that higher food and lower core inflation are coexisting because of crop damage and livestock mortality pushing up the former. The government lent a helping hand by cutting several fuel prices but many of the fuels like petrol, diesel and LPG are not commonly used in rural areas, like they are in urban centres, leading to rural inflation being much higher than urban, it said. The report no

Retail inflations for agricultural, rural workers remain almost flat in May

Retail inflation for agricultural labourers and rural workers remained almost flat at 7 per cent and 7.02 per cent, respectively, in May as against the two comparative figures of 7.03 per cent and 6.96 per cent a month ago. The corresponding figures in May 2023 were 5.99 per cent for CPI-AL (Consumer Price Index-Agricultural Labourers) and 5.84 per cent for CPI-RL (Consumer Price Index-Rural Labourers), a labour ministry statement said. According to the statement, the point-on-point inflation rate based on CPI-AL was recorded at 7.00 per cent in May 2024, showing a deceleration from 7.03 per cent in April this year. Conversely, it stated that for CPI-RL, the inflation rate was recorded at 7.02 per cent in May 2024, a marginal increase from 6.96 per cent in the preceding month. The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) registered an increase of 6 points each in May 2024, reaching levels of 1,269 and 1,281, respectively. The

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