Page 27 - Inflation

Indian economy still growing below its potential, says Jayanth R Varma

Varma says if the economy is not overheating, there is no need of a high real interest rate, which can choke growth

RBI MPC minutes: Caution stays in last leg of fight against inflation

Patra said it was only when the inflation rate subsided and stayed close to the target lastingly that policy restraint could be eased

Premature move on monetary policy could hurt inflation efforts: RBI Guv

The Reserve Bank of India's job to bring down inflation is not over, and any premature move on the policy front could undermine the success achieved so far on the price situation, according to RBI Governor Shaktikanta Das. According to the minutes of the February Monetary Policy Committee (MPC) meeting released by the central bank on Thursday, Das had said at this juncture, monetary policy must remain vigilant and "not assume that our job on the inflation front is over". He stressed that the MPC must remain committed to successfully navigate the "last mile" of disinflation that can be sticky. Das made the remarks while voting for status quo in the key interest rate earlier this month. "As markets are front-running central banks in anticipation of policy pivots, any premature move may undermine the success achieved so far," the governor said, as per the minutes.

BOJ Governor Kazuo Ueda keeps upbeat view on inflation, wage outlook

He added that Japan was in a "state of inflation," rather than deflation, and is likely to see prices keep rising

Higher sales tax drives Sri Lanka inflation to 6.5% in January, shows data

The National Consumer Price Index (NCPI) captures broad retail price inflation and is released with a lag of 21 days every month

Canada's rate of inflation slows, boosts bets on early interest rate cut

The January inflation figure "will certainly raise the odds on an April rate cut," said Karl Schamotta, chief market strategist at Corpay

Retail inflation for farm, rural workers eases marginally in January

Retail inflation for farm workers and rural labourers eased marginally to 7.52 per cent and 7.37 per cent in January as compared to the previous month, mainly due to lower prices of certain food items. In December 2023, Consumer Price Index-Agricultural Labourers (CPI-AL) and Consumer Price Index-Rural Labourers (CPI-RL) was 7.71 per cent and 7.46 per cent, respectively. Food inflation stood at 9.67 per cent and 9.43 per cent last month as compared to 9.95 per cent and 9.80 per cent in December 2023 and 6.61 per cent and 6.47 per cent in the year-ago period, a labour ministry statement said. In January 2023, CPI-AL was 6.85 per cent and CPI-RL was 6.88 per cent. The All-India CPI number for AL and RL for January 2024 increased by 1 point each to 1,258 and 1,268 points, respectively. The CPI-AL and CPI-RL were 1,257 and 1,267 points, respectively in December 2023. The major contribution towards rise in the general index of AL and RL came from miscellaneous groups to the extent of 1

Recurring food price shocks pose challenges in tackling inflation: Das

Reserve Bank Governor Shaktikanta Das on Thursday said recurring food price shocks and renewed flash points on the geo-political front pose challenges in tackling inflation. "We remain vigilant to navigate through the last mile of disinflation as it is often the most difficult part of the journey. We firmly recognise that stable and low inflation will provide the necessary bedrock for sustainable economic growth," the governor said. Das stressed that stable and low inflation will provide the necessary bedrock for sustainable economic growth. India has successfully navigated through multiple challenges and emerged as the fastest-growing large economy, he said in his keynote address at the 59th SEACEN Governors' Conference here. "Prudent monetary and fiscal policies have paved the path for India's success in sailing through these rough waters. The Reserve Bank projects the Indian economy to grow by 7.0 per cent during 2024-25, marking the fourth successive year of growth at or above

Moderation in food prices cools WPI to 3 month low of 0.27% in Jan

This is the third consecutive month that the wholesale inflation rate had remained in the positive territory after it had recorded deflation for the major part of the financial year 2024

Government bonds, rupee weaken post higher than expected US inflation data

Now that rate cut expectation in the US is getting postponed. The market's expectation for the Reserve Bank of India (RBI) to ease its liquidity stance is also experiencing delays

Price rise in majority of states and UTs lower than 5.1%, shows data

A total of 12 out of 23 states and UTs recorded inflation lower than the all-India figure of 5.1 per cent

US inflation slows, but price pressures are easing only gradually

Annual inflation in the United States cooled last month yet remained elevated in the latest sign that the pandemic-fuelled price surge is only gradually and fitfully coming under control. Tuesday's report from the Labour Department showed that the consumer price index rose 0.3 per cent from December to January, up from a 0.2 per cent increase the previous month. Compared with a year ago, prices are up 3.1 per cent. That is less than the 3.4 per cent figure in December and far below the 9.1 per cent inflation peak in mid-2022. Yet the latest reading is still well above the Federal Reserve's 2 per cent target level at a time when public frustration with inflation has become a pivotal issue in President Joe Biden's bid for re-election. Excluding the volatile food and energy categories, so-called core prices climbed 0.4 per cent last month, up from 0.3 per cent in December and 3.9 per cent over the past 12 months. Core inflation is watched especially closely because it typically provide

ECB needs to start cutting interest rates soon, says Fabio Panetta

"Macroeconomic conditions suggest that disinflation is at an advanced stage, and progress toward the 2% target continues to be rapid," he said on Saturday at the annual Assiom Forex event in Genoa

RBI MPC: Repo rate kept at 6.5%; Q4FY24 inflation forecast lowered to 5%

RBI policy meet: The RBI MPC has also decided to keep its stance of 'withdrawal of accommodation' unchanged

RBI MPC today: When, where to watch address of Guv Das and what to expect

RBI monetary policy time: The MPC decision will be announced by Shaktikanta Das at 10 am on Thursday

Inflation within tolerance, taking steps to check price rise: FM Sitharaman

Finance Minister Nirmala Sitharaman on Tuesday said the inflation has come down within the tolerance band as a result of the steps taken by the government to check price rise, especially in perishable commodities. Replying to a question in the Rajya Sabha, Sitharaman said Bhabha Atomic Research Centre (BARC) is working with the government on de-humidification of onions through Gamma Rays to give it a longer shelf life. "The government is seized of the difficulties, which arise due to shortage of perishable goods, which are not grown in India. The committee sits and reviews periodically, and the efforts have shown on the ground that inflation is now within the tolerable band," she said. India's retail inflation has declined from an average of 6.8 per cent in April-December 2022 to 5.5 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. The minister said that in order to check the volatil

Too soon to declare victory over inflation: OECD tells central banks

Global economic growth is proving more resilient and inflation in the US and Europe is easing faster than the organization expected in its November outlook

Retail inflation for industrial workers eases marginally to 4.91% in Dec

Retail inflation for industrial workers eased marginally to 4.91 per cent in December from 4.98 per cent in November 2023, mainly due to lower prices of certain food items. "Food inflation stood at 8.18 per cent (in December 2023) against 7.95 per cent of the previous month (November 2023) and 4.10 per cent during the corresponding month (of December 2022) a year ago," a labour ministry statement said. According to the statement, the year-on-year inflation for the month (December 2023) stood at 4.91 per cent compared to 4.98 per cent in the previous month (November 2023) and 5.50 per cent (December 2022) in the year-ago period. The All-India Consumer Price Index for Industrial Workers (CPI-IW) for December 2023 decreased by 0.3 points and stood at 138.8 points. It was 139.1 in November last year. On one-month percentage change, it decreased by 0.22 per cent with respect to the previous month compared to a contraction of 0.15 per cent a year ago. The maximum downward pressure in th

Likely surge in prices due to Red Sea attacks, says finance ministry report

Geopolitics may weigh on 'remarkable' export show

UK's ruling party chairman hints at tax cuts in March and later in year

Finance minister Jeremy Hunt is due to set out his fiscal plans in an annual budget statement scheduled for March 6