Page 25 - Inflation

US inflation likely cooled again last month as Fed prepares to assess rates

This year's steady slowdown in US inflation likely continued in November, though the latest data may also point to steadily higher prices in some areas of the economy. Tuesday's inflation report from the Labor Department is expected to show that businesses kept overall prices unchanged for a second straight month. Falling gas prices, in particular, are thought to have offset a rise in food costs from October to November. And compared with a year earlier, inflation is expected to ease to 3.1 per cent from 3.2 per cent in October, according to a survey of economists by FactSet. But a closely watched category called core prices, which excludes volatile food and energy costs, is predicted to rise 0.3 per cent from October to November a monthly pace that far outpaces the Federal Reserve's 2 per cent annual inflation target. On a year-over-year basis, core prices are expected to increase 4 per cent, the same as in October. The Fed considers core prices to be a better guide to the likely

Inflation now stable, temporary rises due to demand-supply mismatches: FM

Finance Minister Nirmala Sitharaman on Monday said retail inflation is now "stable" and temporary increases in inflation on a few occasions are caused by demand-supply mismatches arising out of global shocks and adverse weather conditions. In a written reply to the Lok Sabha, Sitharaman said India's retail inflation has declined from an average of 7.1 per cent in April-October 2022 to 5.4 per cent in the corresponding period of 2023. "The retail inflation is now stable and within the notified tolerance band of 2 per cent to 6 per cent. A steady decline in core inflation, estimated after removing volatile food and fuel items from retail inflation, has been critical in weakening the inflationary pressure in the Indian economy," she said. The core inflation rate has declined from 5.1 per cent in April 2023 to 4.3 per cent in October 2023. The minister said retail inflation in India has been mostly within acceptable limits after the notification of the inflation tolerance band in ...

India's potential economic growth rate likely now at 7%, estimates Axis

An economy that's growing faster than its potential would generally result in bottlenecks in supply, causing inflation to accelerate and putting pressure on the central bank to hike interest rates

No plans to loosen rates, no complacency on inflation fight: RBI governor

Governor Shaktikanta Das on Friday ruled out loosening interest rates, saying inflation remains top priority as a few months of good data should not lead to complacency, even as the Reserve Bank kept key policy rates unchanged for the fifth consecutive time. The six-member monetary policy committee of the Reserve Bank of India voted to leave the repurchase rate at 6.50 per cent and decided to keep on sucking out liquidity from the system. Addressing reporters after the bi-monthly policy announcement at the central bank headquarters here, Das clarified that the inclusion of over-tightening in his policy statement should not be construed as anything else. A "loosening" of the rates is not on the table at all," the governor said. Sounding more hawkish, Das said, "The primary objective of the monetary policy, as prescribed in the law, is ensuring price stability that's by maintaining inflation at 4 per cent target for a durable time. ...in May 2022 when we had shifted our focus from .

World food price index unchanged in November, says UN food agency

The Food and Agriculture Organization's (FAO) price index, which tracks the most globally traded food commodities, averaged 120.4 points in November, 10.7% lower than last November

RBI monetary policy: 5 key announcements from the governor's speech today

RBI monetary policy: Central bank raised the UPI payment limits for hospitals and educational institutions to Rs 5 lakh from Rs 1 lakh per transaction

RBI MPC keeps repo rate unchanged at 6.5% for 5th straight policy review

The central bank raised the GDP growth forecast for FY24 to 7% from 6.5%

RBI MPC: Repo rate kept unchanged at 6.5%, FY24 GDP estimate hiked to 7%

RBI MPC: Reserve Bank's Monetary Policy Committee decides to keep the repo rate unchanged at 6.5% and also keeps the FY24 inflation forecast unchanged at 5.4%

RBI set to retain hawkish pause on interest rates; keep liquidity tight

The swap markets are signalling that the Indian central bank will begin cutting rates in the middle of 2024, at least a quarter after the U.S. Federal Reserve is expected to start loosening policy

Govt bans sugarcane juice, syrup for ethanol making in 2023-24 supply year

The Centre on Thursday banned the use of 'sugacane juice and sugar syrup' for ethanol production in the 2023-24 supply year that started this month, in order to maintain adequate sugar availability for domestic consumption and to keep prices under check. However, the government has allowed use of 'B-molasses' for ethanol production in 2023-24, a move which sugar industry bodies welcomed. In a letter issued to all sugar mills and distillers, the Food Ministry directed them "not to use sugarcane juice /sugar syrup" for ethanol production during the 2023-24 ethanol supply year (December-November). The directive was issued as per clause 4 and 5 of the Sugar (Control) Order 1966. "Supply of ethanol from existing offers received by Oil Marketing Companies (OMCs) from B-Heavy molasses will continue," Food ministry said in the letter. The decision by the ministry comes in the backdrop of estimated fall in sugar production in 2023-24 marketing year (October-September). Welcoming the move,

Erratic rainfall, festive demand raised cost of veg thali 10% in November

The cost of a non-veg thali jumped 5% in November as compared to October: CRISIL's Roti Rice Rate index

810 mn dependent on free foodgrains from govt due to inflation: Mayawati

BSP chief Mayawati Wednesday said neither the freedom fighters nor the architect of the Indian Constitution Bhimrao Ambedkar would have thought that more than 81 crore poor people of the country would be dependent on free foodgrains from government as she slammed the Centre for rising inflation. Paying tributes to Ambedkar on his death anniversary, she said the condition of the poor, labourers, farmers, small businessmen, and the middle class could have been improved considerably had the Constitution been implemented in the right manner. "Immense reverence to Bharat Ratna Babasaheb Bhimrao Ambedkar, the messiah of the poor, labourers, Dalits, tribals and backward classes of the 140-crore strong India and the architect of the country's humanitarian and egalitarian constitution, on his death anniversary," Mayawati said in a post on X. On the occasion, she, however, took potshots at the Union government, saying neither the freedom fighters nor Ambedkar could have thought of the plight

Travellers may now be able to buy onions, atta at major metro stations

If the plan is successful in Delhi, it may also be extended to other cities with metro networks like Chennai, Mumbai and Bengaluru

India's services PMI falls to 56.9 in November, lowest in 2023 so far

S&P Global said that the slowdown in services PMI was mainly owing to a slowdown in new orders as well as output across sectors

MPC likely to hold repo rate for fifth time in a row, shows BS poll

Likely to revise FY24 growth forecast upward

RBI to retain 6.5% rate as growth comfortable, inflation in check: Experts

The Reserve Bank is likely to maintain the status quo on the short-term interest rate in its monetary policy review later this week, with inflation staying in comfort zone and economic growth moving at an accelerated pace, opined experts. The RBI has left the benchmark policy rate (repo) unchanged in its past four bi-monthly monetary policies. The RBI had last increased the repo rate In February to 6.5 per cent, thus ending the interest rate hiking spree which began in May 2022 in the aftermath of Russia-Ukraine war and subsequent disruptions in the global supply chain resulting in high inflation in the country. RBI Governor Shaktikanta Das-headed Monetary Policy Committee (MPC) is scheduled to begin its three-day deliberations on December 6. Das would unveil the decision of the six-member MPC on December 8 morning. The MPC meeting is scheduled for December 6-8, 2023. India retained the tag of the world's fastest-growing major economy, with its GDP expanding by a faster-than-expecte

World economy will slow in 2024 because of inflation, high rates, war: OECD

The global economy, which has proved surprisingly resilient this year, is expected to falter next year under the strain of wars, still-elevated inflation and continued high interest rates. The Paris-based Organization for Economic Cooperation and Development estimated Wednesday that international growth would slow to 2.7% in 2024 from an expected 2.9% pace this year. That would amount to the slowest calendar-year growth since the pandemic year of 2020. A key factor is that the OECD expects the world's two biggest economies, the United States and China, to decelerate next year. The US economy is forecast to expand just 1.5% in 2024, from 2.4% in 2023, as the Federal Reserve's interest rate increases 11 of them since March 2022 continue to restrain growth. The Fed's higher rates have made borrowing far more expensive for consumers and businesses and, in the process, have helped slow inflation from its four-decade peak in 2022. The OECD foresees U.S. inflation dropping from 3.9% this

S&P Global, Morgan Stanley peg India's GDP growth at 6.4% in 2024

Those at Goldman Sachs, on the other hand, see the Indian economy growing a tad lower at 6.3 per cent in the year ahead.

New Zealand National Party forms coalition government with two parties

Christopher Luxon will replace the outgoing Labour Prime Minister Chris Hipkins, who held the role for a mere nine months

Russian consumers find themselves in a bind as high inflation persists

The shelves at Moscow supermarkets are full of fruit and vegetables, cheese and meat. But many of the shoppers look at the selection with dismay as inflation makes their wallets feel empty. Russia's Central Bank has raised its key lending rate four times this year to try to get inflation under control and stabilize the ruble's exchange rate as the economy weathers the effects of Russia's military operation in Ukraine and the Western sanctions imposed as a consequence. The last time it raised the rate to 15 per cent, doubled that from the beginning of the year the bank said it was concerned about prices that were increasing at an annualized pace of about 12 per cent. The bank now forecasts inflation for the full year, as well as next year, to be about 7.5 per cent. Although that rate is high, it may be an understatement. If we talk in percentage terms, then, probably, (prices) increased by 25 per cent. This is meat, staple products dairy produce, fruits, vegetables, sausages. My