Page 30 - Inflation

MPC likely to hold repo rate for fifth time in a row, shows BS poll

Likely to revise FY24 growth forecast upward

RBI to retain 6.5% rate as growth comfortable, inflation in check: Experts

The Reserve Bank is likely to maintain the status quo on the short-term interest rate in its monetary policy review later this week, with inflation staying in comfort zone and economic growth moving at an accelerated pace, opined experts. The RBI has left the benchmark policy rate (repo) unchanged in its past four bi-monthly monetary policies. The RBI had last increased the repo rate In February to 6.5 per cent, thus ending the interest rate hiking spree which began in May 2022 in the aftermath of Russia-Ukraine war and subsequent disruptions in the global supply chain resulting in high inflation in the country. RBI Governor Shaktikanta Das-headed Monetary Policy Committee (MPC) is scheduled to begin its three-day deliberations on December 6. Das would unveil the decision of the six-member MPC on December 8 morning. The MPC meeting is scheduled for December 6-8, 2023. India retained the tag of the world's fastest-growing major economy, with its GDP expanding by a faster-than-expecte

World economy will slow in 2024 because of inflation, high rates, war: OECD

The global economy, which has proved surprisingly resilient this year, is expected to falter next year under the strain of wars, still-elevated inflation and continued high interest rates. The Paris-based Organization for Economic Cooperation and Development estimated Wednesday that international growth would slow to 2.7% in 2024 from an expected 2.9% pace this year. That would amount to the slowest calendar-year growth since the pandemic year of 2020. A key factor is that the OECD expects the world's two biggest economies, the United States and China, to decelerate next year. The US economy is forecast to expand just 1.5% in 2024, from 2.4% in 2023, as the Federal Reserve's interest rate increases 11 of them since March 2022 continue to restrain growth. The Fed's higher rates have made borrowing far more expensive for consumers and businesses and, in the process, have helped slow inflation from its four-decade peak in 2022. The OECD foresees U.S. inflation dropping from 3.9% this

S&P Global, Morgan Stanley peg India's GDP growth at 6.4% in 2024

Those at Goldman Sachs, on the other hand, see the Indian economy growing a tad lower at 6.3 per cent in the year ahead.

New Zealand National Party forms coalition government with two parties

Christopher Luxon will replace the outgoing Labour Prime Minister Chris Hipkins, who held the role for a mere nine months

Russian consumers find themselves in a bind as high inflation persists

The shelves at Moscow supermarkets are full of fruit and vegetables, cheese and meat. But many of the shoppers look at the selection with dismay as inflation makes their wallets feel empty. Russia's Central Bank has raised its key lending rate four times this year to try to get inflation under control and stabilize the ruble's exchange rate as the economy weathers the effects of Russia's military operation in Ukraine and the Western sanctions imposed as a consequence. The last time it raised the rate to 15 per cent, doubled that from the beginning of the year the bank said it was concerned about prices that were increasing at an annualized pace of about 12 per cent. The bank now forecasts inflation for the full year, as well as next year, to be about 7.5 per cent. Although that rate is high, it may be an understatement. If we talk in percentage terms, then, probably, (prices) increased by 25 per cent. This is meat, staple products dairy produce, fruits, vegetables, sausages. My

Turkey's central bank hikes rates again to tame eye-watering inflation

Turkey's central bank delivered another huge interest rate hike on Thursday as it tries to curb double-digit inflation that has left households struggling to afford food and other basic goods. The bank pushed its policy rate up by 5 percentage points, to 40 per cent, marking its sixth big interest rate hike in a row focused on beating down inflation that hit an eye-watering 61.36 per cent last month. However, the bank said its rate hikes would soon end. The current level of monetary tightness is significantly close to the level required to establish the disinflation course, the bank said. Accordingly, the pace of monetary tightening will slow down and the tightening cycle will be completed in a short period of time. President Recep Tayyip Erdogan has long been a proponent of an unorthodox policy of cutting interest rates to fight inflation and had fired central bank governors who resisted his rate-slashing policies. That runs counter to traditional economic thinking, and many blam

UK PM Rishi Sunak promises tax cuts after meeting his inflation pledge

Under pressure from within his traditionally low-tax Conservative Party, Sunak said his govt needed to prioritise lowering the tax burden

Far-right Milei wins Argentina presidential elections amid inflation rage

Provisional results so far show Milei with over 55 per cent of votes (13,781,154) with more than 94 per cent of votes counted

Increase in gas prices drives short-term inflation to 42% in Pakistan

The Pakistan Bureau of Statistics (PBS) said the inflation reading stood at 41.9 per cent for the week ending November 16

Food inflation remains above comfort level, despite easing of CPI: Official

Food inflation, which accounts for nearly half of the overall consumer price basket, was 6.61% in October

Rishi Sunak hits inflation target amid Suella Braverman's scathing attack

British Prime Minister Rishi Sunak appeared buoyant on Wednesday as official statistics revealed that inflation dropped to 4.6 per cent, meeting his end of year target to curb price rises against the backdrop of his sacked home secretary's attack claiming his plan is not working. The target to half inflation from the highs of over 10 per cent when he took charge at 10 Downing Street last year was among Sunak's top five priorities for his government. The British Indian leader, who undertook a surprise Cabinet reshuffle earlier this week starting by sacking Suella Braverman for repeated insubordination, firmly declared that he will stay the course a day after his former Cabinet minister unleashed a scathing attack on his leadership in a very public three-page letter. We have halved inflation, meeting the priority I set out in January, said Sunak in a statement. It's involved hard decisions and fiscal discipline, rejecting calls for higher spending and more borrowing. As many people .

Nine states record higher inflation rates compared to national average

Among the advanced economies, only the UK has recorded higher prices compared to India

Rupee little changed as RBI support aids, inflation data in focus

While state-run banks were supplying dollars in the spot market even on Monday, traders said it was difficult to ascertain whether it was for their clients or for the RBI

FMCG industry logs 8.6% volume growth in Q2 on easing inflation: NielsenIQ

The FMCG industry in India had an overall 8.6 per cent volume growth in September quarter, helped by higher consumption as the inflationary pressure eased, according to a report by data analytics firm NielsenIQ. With correction in prices, the FMCG industry logged 9 per cent growth in value terms in July-September(Q3), reducing from the preceding quarters, it added. When inflation was at a record high, the FMCG industry had a high price-led growth in the last 5-6 quarters, though the volume was under stress. However, the trend has started reversing with the cooling of commodity prices. Besides, the rural market, which has been facing a consumption slowdown for the last several quarters, is showing signs of recovery, while the urban market is maintaining a "stable rate of growth", said the latest NielsenIQ's FMCG Quarterly snapshot. Smaller-sized packs are having higher offtake in the rural market, while in urban markets average pack sizes turn positive, though there is a continued .

Bonds are looking attractive and set to beat cash, says Goldman Sachs

Goldman Sachs strategists see 10-year Treasury yields at around 4.6 per cent over the next 12 months, just below their current level after this week's sharp fall

Low demand drags India's services PMI to seven-month low in October

The survey also mentioned that services companies in India reported an increase in their expenses in October due to higher food, fuel, and staff costs

Pakistan's October consumer inflation declines to 26.9%: Statistics Bureau

This brings the average inflation rate for the fiscal year (July-Oct) to 28.48%, against the target of 21% for the current fiscal year. Inflation has been in double digits since November 2021

Inflation in Europe region eased to 2.9% in October on lower fuel prices

The inflation that has been wearing on European consumers fell sharply to 2.9% in October, its lowest in more than two years as fuel prices fell and rapid interest rate hikes from the European Central Bank took hold. But that encouraging news was balanced by official figures showing economic output in the 20 countries that use the euro shrank by 0.1% in the July-September quarter. Inflation fell from an annual 4.3% in September as fuel prices fell by 11.1% and painful food inflation slowed, to 7.5%. The drop to under 3% is down from the peak of over 10% in October 2022 and puts the inflation figure at least within shouting distance of the European Central Bank's target of 2% considered best for the economy. But growth disappeared as output shrank after months of stagnation near zero.

Never seen this kind of alignment in banks: KV Kamath at the BS BFSI Summit

Kamath said that he has 'no sympathies' for organisations complaining of not having enough people in a country like India