Page 29 - Inflation

Oil marketing companies likely to feel the heat of high crude oil prices

RIL a likely beneficiary of higher refining margins; ONGC and Oil unlikely to see major change in estimates

UK inflation in surprise fall in Aug, though BoE still set to raise rates

Inflation in Britain fell unexpectedly in August to its lowest level since the start of Russia's invasion of Ukraine, which led to sharp rises in energy and food costs. The Office for National Statistics said Wednesday that inflation, as measured by the consumer prices index was 6.7 per cent in August this year, down from 6.8 per cent in July. The decline took inflation to its lowest level since February 2022. It said that lower hotel and air fare costs and a moderation in food price rises helped offset an increase in energy prices on the back of higher crude oil prices. The decline was unexpected. Most analysts had expected an increase to around 7 per cent. Though the surprise decline was encouraging, inflation remains way above the Bank of England's target rate of 2 per cent and most economists think it will raise its main borrowing rate once again on Thursday by a quarter of a percentage point to a near 16-year high of 5.5 per cent. Like other central banks around the world, th

Upward revision: OECD raises India's FY24 GDP growth projection to 6.3%

Also revises inflation projection to 5.3% from 4.8%

Stabilising core inflation shows easing price pressures in economy: RBI

Vegetable prices eased in August and brought down retail inflation to 6.8%. This is likely to continue in September, the Reserve Bank of India said in its monthly bulletin

Growth jitters knock global stocks before central bank meeting-packed week

The pan European index slipped 0.5%, dragged down by health care, bank and chip stocks. Societe Generale, France's third-biggest listed bank, saw its shares drop more than 6%

A massive $188 bn exodus shows China's heft fading in world markets

Foreign holdings of the nation's equities and debt have fallen by about 1.37 trillion yuan ($188 billion), or 17%, from a December-2021 peak through the end of June this year

Weekend Bites: FM's wish, 15 yrs since Lehman fell, Taper Tantrum, Apple

In which we munch over the week's platter of news and views

Ten years since taper tantrum

If the exogenous pressures were the same across 2013 and 2022, why were outcomes so different across the two episodes?

20% poorest bear maximum brunt of price rise on daily basis: Congress

Congress president Mallikarjun Kharge slammed the BJP-led Centre on Friday on the issue of inflation, claiming that the 20 per cent poorest people in the country bear the maximum brunt of price rise on a daily basis. Kharge asked Prime Minister Narendra Modi not to divert from real issues and to focus on reducing prices so that the sufferings of people come to an end. "Don't talk here and there, talk about the real issues. By talking here and there, Modiji wants to divert the public's attention from 'looting by inflation'," the Congress chief said in a post in Hindi on X. "Due to the 'grand loot' of the Modi government, the poorest 20 per cent people are bearing the brunt of the back-breaking inflation," he added. Kharge said the prices of food items are skyrocketing and the country has now realised that the only reason for their troubles is the Bharatiya Janata Party (BJP). "In the coming elections, the public will definitely take revenge for this 'loot' by teaching a lesson to t

Top headlines: Sitharaman says no licence raj, sees buoyancy in economy

Business Standard brings you the top headlines at this hour

ECB hikes key interest rate to record high even as recession threat grows

Thursday's decision raises the ECB's benchmark deposit rate to 4%, up drastically from minus 0.5% just a little more than a year ago and the highest since the euro was established in 1999

Fitch retains India's growth forecast at 6.3%, flags inflation risks

Fitch Ratings on Thursday retained India's growth forecast for the current fiscal at 6.3 per cent saying the Indian economy continues to show resilience despite tighter monetary policy and weakness in exports, but upped year-end inflation projection on El Nino threat. The Indian economy grew 7.8 per cent in the April-June quarter of current fiscal on strong services sector activity and robust demand. "The Indian economy continues to show resilience despite tighter monetary policy and weakness in exports, with growth outpacing other countries in the region," Fitch said, while projecting 6.3 per cent growth for current fiscal, and 6.5 per cent for next fiscal. In its September update of the Global Economic Outlook Fitch, however, said that high-frequency indicators suggest that the pace of growth in the July-September quarter is likely to moderate. Growth in the July-September quarter is likely to moderate as exports continue to weaken, credit growth flatlines and the Reserve Bank of

Oil prices rises as expected supply cuts offset inflation concerns

The continuing supply cuts could lift Brent futures above the $100 a barrel threshold before the end of the year, Bank of America analysts said on Wednesday

US CPI gauge accelerates 1st time in 6 months, making room for fed hike

The so-called core consumer price index, which excludes food and energy costs, advanced 0.3% from July, the first acceleration in six months, Bureau of Labor Statistics data showed Wednesday

Is India overestimating inflation as it is skewed to food and beverages?

The work on appropriate weights of various items could be completed once the household consumption expenditure survey is out

Delhi govt's free services schemes provided relief from inflation: Kejriwal

Chief Minister Arvind Kejriwal on Wednesday claimed inflation is the lowest in Delhi and the city government's schemes for free education, health care, electricity and water have provided "tremendous" relief to people of the national capital. Retail inflation in India declined to 6.83 per cent in August after touching a 15-month high of 7.44 per cent in July, mainly due to softening prices of vegetables, but remains above the RBI's comfort zone, according to official data released on Tuesday. Sharing a news report that compared the inflation figures of some states with the national average, Kejriwal said in a post on X that his government's free services schemes and its honesty provided relief from inflation to the people of Delhi. "According to the data, inflation is again the lowest in Delhi, as always. The Delhi government's free education, free treatment, free travel for women, free water, free electricity, free pilgrimage as well as honest government have provided tremendous ..

Gas prices likely pushed up inflation in Aug, other costs probably slowed

A sharp increase in gas prices likely pushed inflation higher in August compared with a year ago, yet a measure excluding energy and food costs is expected to fall for the fifth straight month, suggesting that the Federal Reserve's interest rate hikes are still bringing down prices for many goods and services. The consumer price index is projected to have increased 3.6% last month from a year earlier, according to economists' forecasts compiled by data provider FactSet. The increase would be up from 3.2% in July, though still far below the peak of 9.1% in June 2022. Yet core prices, which exclude food and energy and are monitored closely by the Federal Reserve, are likely to cool to 4.3% in August from a year ago, down from a 4.7% annual pace in July. The Fed follows core prices because they can provide a better read on where inflation is headed. If the forecasts are accurate, such data will likely fuel optimism that inflation is coming under control, despite the rise in gas prices,

Wall Street dips, the dollar strengthens ahead of key inflation data

One week from today, the central bank is due to convene its two-day policy meeting, at which the Fed is broadly expected to let current key interest rates stand

India's inflation higher than peers; global prices hit a two-year low

Downward pressure on food as global prices hit a two-year low

Inflation likely to be cooled in August, but still above RBI target range

Erratic monsoon rains have ruined some crops of staple food items, prompting the government to subsidise vegetable prices and ban exports of some cereals, providing temporary relief to households