Page 5 - Inflation

India's April consumer inflation likely rose to 3.8% on higher fuel costs

Indian companies raised prices of LPG, widely used as a cooking fuel in households, in March after the West Asia conflict disrupted energy supplies, an effect economists said likely carried into April

Asia's heat waves spell double trouble for economies hit by oil price shock

Inflation accelerated to multiyear highs across much of Asia, latest figures showed, led by higher transport, logistics and utility costs

India may consider lower inflation target, narrower band: RBI Deputy Guv

India could consider lowering the inflation target and trimming the tolerance band if GDP growth remains robust with a more stable inflation over the next five years, RBI Deputy Governor Poonam Gupta said on Tuesday. However, if the global environment remains as challenging as it has been during the past six years, it would warrant both predictability and flexibility inherent in the existing framework, she said. The government, after consultation with the RBI, has notified the inflation target framework for a five year period through March 31, 2031. As per the framework, the Reserve Bank has to keep inflation at 4 per cent (+/-2 per cent) from FY27-FY31. Speaking at an NCAER seminar, Gupta said the future of the inflation targeting framework in India would depend on the combination of inflation and growth outcomes as they evolve during the next five years. Also, the future inflation targeting framework would have to take into account the global shocks that the economy may have to

Hidden cost of war on wealth: Capital compounding may be less forgiving

Instead of panic, respond with preparedness; keep separate money pools of money for short-, medium-, and long-term needs

Best of BS Opinion: India's FTA with New Zealand shows agile deal-making

From India's FTA strategy and Sun Pharma's global ambitions to LPG shortages, West Asia risks and Asean ties, here are the key insights from today's Opinion page

Heatwaves, weak monsoon and oil surge may push India's inflation higher

This year's adverse weather conditions will likely push inflation above 5 per cent in the fiscal year beginning April 1, exceeding the RBI's projection of 4.6 per cent

'Growth-inflation tradeoff likely to have shifted adversely for near term'

RBI MPC member flags adverse shift in growth-inflation balance, warns of rising policy risks amid global uncertainty and persistent inflation expectations

Is India's inflation targeting sufficiently capturing the digital economy?

As digital payments reshape consumption patterns, questions arise over whether India's CPI-based inflation targeting adequately reflects real transaction prices in a rapidly evolving economy

West Asia crisis: Supply woes could trigger demand shock, says RBI Bulletin

War, weak monsoon raise upside risks to inflation

External debt and inflation within target: RBI governor Sanjay Malhotra

Malhotra further highlighted India's continued commitment to regulatory reforms and enhanced ease of access and operations for foreign investors

India fiscal deficit may breach target, rise to 4.5% in FY27: BMI

Fitch warns India's fiscal deficit may exceed the FY27 target due to higher subsidies and policy support, while Moody's sees rising inflation and unemployment risks

Margin concerns and high valuations may cap gains for Nestle India

Nestle India reported strong Q4 growth, but rising raw material costs, sustained ad spends and high valuations may limit upside despite volume-led gains

India can sustain growth despite crude at $90-100 per barrel: Assocham

India can sustain economic growth despite crude prices in the $90-100 per barrel range, supported by strong consumption, infrastructure spending and macroeconomic resilience

India's unemployment to tick up, inflation to rise in 2026: Moody's

Moody's Analytics projects India's unemployment rate to edge up to 7 per cent in 2026, while inflation may rise to 4.5 per cent, the highest among Asia-Pacific peers

UK inflation rises to 3.3% in March as Iran war impact begins to hit

The British central bank is expected to keep borrowing costs on hold on April 30 at the end of its next scheduled Monetary Policy Committee meeting

Second-round effects of supply shocks a real concern, says RBI governor

Forex intervention as needed; not committing to indefensible peg: Malhotra

'Iran war may be as disruptive for India as Covid; long-term impact likely'

Although the government is sticking to its forecasts of 6.8 per cent-7.2 per cent for the fiscal year through March 2027, several economists have already started to downgrade their projections

Fuel pushes March wholesale inflation to 3.88%; highest in 41 months

The increased rate of inflation in March was primarily due to a jump in prices of crude petroleum & natural gas, other manufacturing, non-food articles, manufacture of basic metals and food articles

IMF lifts India FY27 growth to 6.5% as lower US tariffs offset risks

IMF has raised India's FY27 growth forecast to 6.5 per cent, saying lower US tariffs could offset the impact of West Asia tensions even as global growth and trade outlook weaken

Crude oil prices at $130 could unsettle growth outlook: S&P Global

S&P Global says crude at $130 per barrel could slow India's growth, widen fiscal deficit, raise inflation and strain corporate and banking sector performance