Page 3 - Inflation

RBI may maintain status quo in June, hike rates twice in FY27: Economists

The Reserve Bank of India (RBI) is likely to keep the benchmark repo rate unchanged in the June monetary policy review, according to a PTI poll of economists and treasury heads. Most of the respondents expect the central bank to resume policy tightening later in FY27 amid mounting inflation risks. Of the respondents surveyed, 11 expect the Monetary Policy Committee (MPC) to maintain the status quo on rates in the upcoming policy to be announced on Friday, while four foresee a 0.25 per cent hike. "Pause because headline inflation remains below the 4 per cent target. The RBI has policy space to wait to see the second round impact on inflation from the fuel price hike. Flexible inflation target provides policy space to look through the first round impact of supply side shocks," said Gaura Sengupta, economist at IDFC First Bank. The MPC will meet between June 3 and June 5 to decide on the policy rates. The central bank has reduced the repo rate by 1.25 per cent since last year to aid .

Iran war puts RBI in razor-edge policy bind over inflation, growth, rupee

The rupee has tumbled ​to record lows since the Iran war broke out at the end of February

Global investors still under-allocated to emerging mkts: Candace Browning

BofA's Candace Browning sees inflation, central bank policy, AI, and India's market outlook as the key forces shaping global investments

FinMin calls for policy agility as economy shows 'cautious resilience'

The finance ministry on Saturday said strong domestic fundamentals support growth, but rising oil prices, a weaker monsoon and global uncertainty warrant continued policy vigilance

Lingering geopolitical tensions may hit loan portfolios: RBI report

RBI warned that the West Asia conflict, rising energy prices and monsoon risks could weigh on India's growth and inflation outlook in the short term

Food, personal care products may get costlier as input costs rise: Report

The report said companies have already increased prices by around 3 per cent to 7 per cent over the past one to two months after their raw material basket costs climbed nearly 10 per cent on average

Wealth erosion likely as India's consumer economy heads into perfect storm

With household budgets under strain from rising prices, coupled with slow income growth due to a decelerating economy, the consumer goods sector is bracing for a demand slowdown

Why high inflation bodes well for FMCG companies: Harini Dedhia decodes

Having witnessed a prolonged period of benign inflation in the last decade, we should have expected FMCG companies to witness great volume growth, if not value. However, the opposite has been true

RBI not in favour of rate hikes to defend rupee, prioritises inflation

India's rupee has fallen nearly 6 per cent since the Iran war began late in February and slumped to a record low of nearly 96.96 per dollar on Thursday

Crude prices could influence growth, inflation: EAC-PM chief S Mahendra Dev

EAC-PM Chairman S Mahendra Dev said higher crude prices and supply disruptions from the West Asia conflict could weigh on India's growth and inflation

India's shrinking bond yield cushion: Why the US-India spread matters

India's 10-year bond yield premium over the US has narrowed to around 250 basis points, well below its decade average. But does that mean RBI will cut rates? Let's find out

Best of BS Opinion: Govt must allow greater price adjustments

From rising oil pressures and coal gasification to urban housing reform and RBI policy, today's BS Opinion explores the economic and structural challenges shaping India's future

Is India's inflation targeting too rigid for this oil-shock climate?

A credible framework requires credible measures of price expectations

IMF backs targeted relief over broad subsidies amid oil price surge

The multilateral institution has urged governments to avoid broad-based subsidies and instead adopt targeted fiscal measures to manage inflation and protect vulnerable households

RBI likely to hold repo rate at 5.25% through FY27: India Ratings

India Ratings projects GDP growth at 6.7% and inflation at 4.4%, warning that higher crude prices and West Asia tensions may pressure growth and trade deficit

Nobel-winning economist Edmund Phelps reshaped modern thinking on inflation

The Nobel laureate's work on inflation expectations and unemployment transformed economic policymaking and influenced central banks around the world

'Fuel price hike raises inflation woes; Rupee eyes 96.80 on higher crude'

Petrol and diesel prices were raised by ₹3 per litre as Brent crude stayed above $105 per barrel. Here's how rising fuel prices could impact inflation and the rupee

'Further fuel price hikes may intensify FPI selling in Indian markets'

Elevated crude oil prices further worsen India's inflation-growth trade-off by putting pressure on the rupee, widening the current account deficit, & limiting the scope for aggressive monetary easing

MPC to look through West Asia shock if it's transitory: RBI Governor

Coordination with fiscal policy becomes critical amid 'supply shock as bad as it is', says Malhotra

US consumer inflation rises 3.8% in April, highest since May 2023

In the 12 months through April, the CPI advanced 3.8 per cent . That was the biggest year-on-year increase since May 2023 and followed a 3.3 per cent rise in March