Page 29 - Inflation

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

No hint of cuts as ECB keeps rates unchanged at record-high of 4%

Investors are betting that the ECB is getting it wrong on both growth and inflation and will be forced to U-turn and deliver five rate cuts in rapid succession from early spring

Inflation slows in New Zealand to its lowest rate since 2021, shows data

Inflation in New Zealand has slowed to its lowest rate in two and a half years, the country's official statistics agency announced on Wednesday. Stats NZ revealed the latest consumers price index (CPI) data had slowed to 4.7% across 2023, a significant drop from the 5.6% result in the year to September 2023. The agency said falling food and transport prices were the main drivers of the slowdown in the inflation rate which had peaked at 7.3 per cent in 2022. While the CPI is still above the the Reserve Bank of New Zealand's target band of 1-3%, the better than expected slowdown all but ends any speculation of a further hike of the official cash rate which currently sits at 5.5% when the Reserve Bank next meets in on Feb. 28. The fall to 4.7% was in line with market expectations, but lower than the Reserve Bank's prediction of 5%. New Zealand Finance Minister Nicola Willis said a key goal of the government was to lower inflation. Our immediate focus is getting inflation back into

India to retain top economy title as govt spending stays strong: Poll

While inflation rose to the fastest pace in four months in December to 5.69 per cent, driven by pressures from food prices, economists expect that to fade soon

BOJ signals conviction on hitting inflation target in hawkish tilt

BOJ Governor Kazuo Ueda gave no hints on whether the bank would pull short-term interest rates out of negative territory at its upcoming meetings in March or April, as many economists expect

What does disruption to shipping in Red Sea mean for Europe's economy?

For the European economy, already skirting a mild recession as it tries to shake off high inflation, prolonged disruption would be a new risk to its outlook

Inflation needs to align with target by 2nd quarter: RBI monthly bulletin

It says headline inflation must align with 4% target by second quarter

US import prices unchanged in December after two straight monthly decreases

Since March 2022, the Fed has raised its policy rate by 525 basis points to the current 5.25%-5.50% range

Economy likely to grow 7% in 2024-25, inflation to ease further: RBI Guv

Indian economy should record a growth rate of 7 per cent in the next fiscal and inflation is likely to ease further, RBI Governor Shaktikanta Das said on Wednesday. He also credited the government for structural reforms undertaken in recent years, saying they have boosted the medium and long-term growth prospects of the Indian economy. He said that amidst a challenging global macroeconomic environment, India presents a picture of growth and stability. Speaking at a CII session on 'High growth, low risk: The India story' here during the World Economic Forum Annual Meeting, Das said recent information on the global economic front has been reassuring with inflation falling, though growth remains low. "Chances of soft landing have improved and markets have reacted positively. However, geopolitical risks and climate risks remain matters of concern," he said. The RBI Governor said the real GDP growth in India is expected at 7.2 per cent this year.

Rates to stay higher, battle against inflation not yet over: IMF's Gopinath

Affirming that the fight against price rise is not yet over, IMF's Gita Gopinath on Tuesday said interest rates are likely to stay higher than during the period immediately after the global financial crisis. There are expectations though that it will come down sometime this year, the International Monetary Fund's First Deputy Managing Director said. Speaking at a session during the World Economic Forum Annual Meeting 2024 here, Gopinath dismissed the market bets for a cut in interest rates as premature. "The markets are expecting central banks to cut rates pretty aggressively. I think that's a bit premature to make that conclusion. "We should expect rates to come down some time this year but based on the data we see right now, we expect this to be more likely in the second half of this year," she said. She also felt that chances of a deep recession were less likely.

Real, nominal GDP growth, inflation play out differently this time around

This happened because inflation, as viewed by GDP deflators, is expected to be quite lower than initially projected for first time, contrary to what had happened ahead of 3 previous interim Budgets

Nine states record higher inflation than India average, shows data

While the average Indian consumer's cost of living rose by 5.69 per cent compared to the previous year, it rose 8.73 per cent in Odisha, 7.07 per cent in Gujarat and 6.95 per cent in Rajasthan

US consumer prices up more than expected in Dec, weekly jobless claims fall

The consumer price index (CPI) rose 0.3% last month after nudging up 0.1% in November, the Labor Department's Bureau of Labor Statistics said on Thursday

US small business sentiment up; labour, inflation worries persist

A net negative 25% of businesses reported improved profits in December, a 7 point increase from the month prior, with labor costs continuing to weigh on earnings, the report said

UK economy to hit 2% inflation target by spring in upgraded outlook

A 1% cut in the basic rate of income tax in April would add another £4 billion this year, and a halving of the inheritance tax rate to 20% would be worth close to £1 billion more for 2024

Inflation's pulse: Yellow peas imports to help potential chickpea shortfall

Advancements in pulses technology and its widespread adoption across India could help achieve self-sufficiency. For now, though, the hope is that matar will address the inflation matter

Central theme of '24: Fight with inflation for growth

A rate cut will happen this year. When? It will depend on the growth-inflation dynamics as well as the US Fed action

India to be fastest-growing economy in 2024 after withstanding headwinds

India decisively withstood global headwinds in 2023 and is likely to remain as the world's fastest-growing major economy on the back of growing demand, moderate inflation, stable interest rate regime and robust foreign exchange reserves. Despite widespread pessimism witnessed among the developed nations and the worsening geopolitical situation, India recorded a gross domestic product (GDP) expansion of 6.1 per cent in the March quarter. The growth moved up to 7.8 per cent in the June quarter and was 7.6 per cent in the September quarter. For the first six months of this fiscal, the growth was 7.7 per cent. The growth momentum is expected to sustain in the December quarter, making India the fastest-growing major economy in the world much ahead of China. According to the latest growth projections of the Organization for Economic Cooperation and Development (OECD), which appear conservative, India will record a growth of 6.3 per cent in 2023, ahead of China and Brazil at 5.2 per cent

Rahul Gandhi, Kharge identify unemployment, inflation as key problems

Cong picked Nagpur to mark its foundation day and launch its LS campaign, 'Hum Tayyar Hain', given the city's salience in shaping the ideological contours of the last hundred years of Indian politics

Rate impact, inflation decline: Axis MF forecasts 2024 as year of contrast

Citing the recent state election results, the note stated that the risks from the general election are low