Page 3 - Inflation

Best of BS Opinion: The RBI's current policy framework has worked well

Today's Opinion Page looks at the RBI's recent discussion paper on inflation targeting, OpenAI's plans for India, the role of institutions in growth, and the recent GST rate cuts boost to growth

RBI inflation target review, liquid MFs' demand rises, S&P's sovereign rating India upgrade & more

The RBI has floated a discussion paper, seeking views on whether the 4% target should continue, if headline or core inflation should be tracked, and whether the current ±2% band should be tweaked.

Powell faces high-stakes gamble on US economy in final Jackson Hole speech

Powell's high-stakes balancing act will be on full display on Friday when he makes his final address as Fed chair to the world's leading economic policymakers

Retail inflation for farm, rural workers ease to 0.77 pc, 1.01 pc in July

Retail inflation for farm and rural workers eased to 0.77 per cent and 1.01 per cent in July from 1.42 per cent and 1.73 per cent, respectively, in June, according to data released by the Labour Ministry on Thursday. The All-India Consumer Price Index for Agricultural Labourers increased by 1.23 points to 135.31 in July 2025, while the index for Rural Labourers increased by 1.30 points, reaching 135.66, a Labour Ministry statement said. The Food Index increased by 1.94 points for Agricultural Labourers (AL) and 2.16 points for Rural Labourers (RL) in July 2025. According to the statement, the year-on-year inflation rate for agricultural labourers and rural labourers stood at 0.77 per cent and 1.01 per cent, respectively, in July 2025. The food inflation in July 2025 stood at (-) 1.56 per cent (contracted) for AL and (-) 1.13 (contracted) per cent for RL. The Labour Bureau, Ministry of Labour & Employment, releases Consumer Price Index Numbers for Agricultural Labourers and Rural .

What the revision of a 30-year-old inflation index means for rural wages

Shifting the base year for two critical inflation indices is important as they determine minimum wages for agriculture and rural workers, and could also affect payments under the MGNREGA jobs programm

Asian markets mostly higher as uptick in inflation pulls US stocks lower

Asian are mostly higher after most stocks on Wall Street fell following a disappointing report that said inflation was worse last month at the US wholesale level than economists had expected. US futures rose while oil prices slipped. China reported data showing its economy was feeling pressure from higher US tariffs in July, while property investments fell further. Retail sales rose 3.7% year-on-year, down from 4.8% in June, while investments in factory equipment and other fixed assets rose a meager 1.6%, compared with 2.8% growth in January-June. Uncertainty over tariffs on exports to the United States is still looming over manufacturers after President Donald Trump extended a pause in sharp hikes in import duties for 90 days following a 90-day pause that began in May. The Shanghai Composite index added 0.5% to 3,683.58, but Hong Kong's Hang Seng index fell 1.2% to 25,216.45. Chinese economic activity slowed across the board in July, with retail sales, fixed asset investment, an

Monsoon-induced supply disruptions hold key to vegetable inflation ahead

While the monsoon has been fairly normal so far, rain-induced supply disruptions and damage to standing crops in areas adjoining major cities has already started pushing up vegetable prices

US consumer prices up moderately in July; data quality concerns rising

The consumer price index rose 0.2 per cent last month after gaining 0.3 per cent in June, the Labor Department's Bureau of Labor Statistics said on Tuesday

US core inflation likely to increase as higher tariffs push up prices

The core consumer price index, regarded as a measure of underlying inflation because it strips out volatile food and energy costs, rose 0.3 per cent in July

India inflation likely dropped to an eight-year low in July: Poll

The RBI left rates unchanged at 5.50%, as expected, on Wednesday and said the inflation outlook was 'more benign'

MPC review: RBI hits pause on policy repo rate cuts, citing uncertainties

The central bank also cut the inflation outlook for the current financial year by 60 basis points (bps) to 3.1 per cent which is significantly below its mandated target of 4 per cent

RBI has done its part, solutions to external disruptions lie elsewhere

The MPC also reduced its inflation projection for this financial year from 3.7 per cent to 3.1 per cent, which is significantly lower than the target of 4 per cent

Status quo on policy: Is this the end of the Reserve Bank's easing cycle?

With the rise in inflation from the fourth quarter, possibility of another rate cut uncertain, unless growth plays spoilsport

RBI holds repo repo at 5.5%: Analysts decode impact on markets, key sectors

The RBI decision aligned with market expectations as market experts welcomed the move, calling it in line and a constructive backdrop for the markets

Rate cut? Status quo likely in Aug monetary policy despite inflation dip

RBI set to lower inflation projection, but GDP growth estimate and policy stance may remain unchanged

Tariffs drive June inflation rise in US, delaying Fed rate cut hopes

The personal consumption expenditures (PCE) price index rose 0.3 per cent last month after an upwardly revised 0.2 per cent gain in May, the Commerce Department's Bureau of Economic Analysis said

Inflation likely to be below RBI's target in FY26: FinMin review

The finance ministry's June 2025 review says inflation could fall below the RBI's 3.7% target, providing scope for further easing, though credit growth remains weak

Inflation, growth outlook to guide rate cuts, not current CPI data: RBI Guv

With data showing a steep decline in price rise in June, Reserve Bank Governor Sanjay Malhotra on Friday said that the outlook on inflation and growth will determine future rate cuts, making it clear that the current data will not influence the trajectory. Speaking at the FE Modern BFSI Summit here, Malhotra also stated that the RBI's rate cuts will not lead to asset bubbles and added that the central bank has more ammunition in its arsenal beyond rate cuts to help the economy. It can be noted that the RBI has cut its key rates by 1 percentage point this year, and official data pointing to headline inflation cooling to 2.1 per cent against the 4 per cent target has led to expectations of further easing. "Rate cuts will depend on the outlook for both growth and inflation rather than the current numbers," Malhotra said. "We have to remember that monetary policy works with a lag and hence outlook on the outcomes on key data like inflation for up to 12 months is kept in mind while taki

Flexible inflation targeting helps anchor inflation expectations: RBI study

RBI's report on the transition to flexible inflation targeting highlights its role in managing inflation expectations, despite supply shocks and global inflation factors

Fed holds off on rate cuts as inflation risks outweigh Trump pressure

Powell and other Fed officials said they expected price increases to quicken this summer