Page 77 - Inflation

RBI report projects retail inflation within tolerance band by Q1FY24

Says persistent high inflation needs policy response

Cereal inflation likely to offset disinflationary forces, say experts

There is a possibility of a 10-15-million tonne drop in kharif rice production due to drought in several major growing states in eastern India

Elevated inflation warrants appropriate policy response, says RBI article

Inflation is persistently at elevated levels that warrants appropriate policy responses to anchor expectations going forward, said an RBI article published on Thursday. Retail inflation based on the consumer price index (CPI) softened to 6.71 per cent in July, mainly on account of moderation in food prices. The Reserve Bank has increased the benchmark lending rate (repo) in three quick successions by 140 basis points to tame inflation, which remains above its tolerance level for the sixth month in a row. "...perhaps the most heartening development in recent times has been the easing of inflation in July 2022 by 30 basis points from June 2022 and an appreciable 60 basis points from the average of 7.3 per cent for Q1:2022-23. "This has validated our hypothesis that inflation peaked in April 2022," said the article on the 'state of the economy'. For the rest of the year, the RBI's projections scent a steady easing of the momentum of price changes, it said. The article has been autho

Global stocks lower after FOMC's July minutes suggest US inflation too high

Global stock markets and Wall Street futures mostly declined on Thursday after the Federal Reserve said US inflation is too high despite aggressive rate hikes, suggesting support for more increases. London, Shanghai, Tokyo, and Hong Kong declined. Frankfurt opened higher. Oil prices edged up. Notes released on Wednesday from the Fed's July 26-27 board meeting said inflation is unacceptably high", despite signs US economic growth is weakening. Board members saw little evidence to inflation pressures as subsiding. Investors worry aggressive rate hikes imposed by the Fed and central banks in Europe and Asia this year to tame inflation that is running at multi-decade highs might derail global economic growth. The Fed notes raised the prospects of further tightening," while some investors see possible excessive tightening dragging growth, Venkateswaran Lavanya of Mizuho Bank said in a report. In early trading, the FTSE 100 in London slipped 0.2 per cent to 7,498.98 while Frankfurt's DA

Sensex ends 352 pts off day's lows, rises 38 pts; L&T, Airtel top gainers

CLOSING BELL: The recovery was led by Kotak Bank (up 4 per cent), L&T, Bharti Airtel, SBI, HDFC Bank, HDFC, and ITC

Inflation not impacting phone sales revenue; 50k bookings in a day: Samsung

South Korean electronics giant Samsung feels the ongoing worries on inflation are unlikely to dent mobile phones business in India, adding that it sees a healthy double-digit growth in its revenues this year. The company has witnessed record pre-bookings by 50,000 customers for its newly-launched flip and fold mobile phones models costing between Rs 90,000 - Rs 1.5 lakh within 24 hours, Aditya Babbar, its head of product marketing, told PTI. "All our internal estimates show that the market will grow at a healthy number and we will outpace at 2x," Babbar said, adding it expects the industry to grow in single digits, while it has set itself a double-digit growth target by value for 2022. In the premium category alone, it is looking at a 1.5-times growth in sales over the last year, Babbar said, but declined to disclose the units it sold in 2021. High inflation, coupled with other problems like a slowdown in rural demand reported by consumer goods companies and higher unemployment, ha

UK inflation hits double digits in July for the first time in 40 years

The Consumer Prices Index rose 10.1% in July in the UK from a year earlier after a 9.4% gain the month before

At 10.1%, Britain's inflation hits 40-year high as food prices soar

Britain's rate of inflation has surged to a new 40-year high as the Consumer Prices Index (CPI) rose to 10.1 per cent on Wednesday, with increasing food costs the biggest driver of the latest hike. According to the Office for National Statistics (ONS), annual inflation for essential food items is now running at 12.7 per cent, up from 9.8 per cent in June, fuelled largely by price rises for basics such as bread, milk, cheese and eggs. The latest figures come amid soaring energy bills and a mounting cost-of-living crisis across the country. "A wide range of price rises drove inflation up again this month, said ONS chief economist Grant Fitzner. "Food prices rose notably, particularly bakery products, dairy, meat and vegetables, which was also reflected in higher takeaway prices. Price rises in other staple items, such as pet food, toilet rolls, toothbrushes and deodorants also pushed up inflation in July, he said. "Driven by higher demand, the price for package holidays rose, after

Volatile cotton prices, weak domestic demand hurt Gujarat's denim industry

Most MSMEs running at 60 per cent capacity as high input prices have also made exports costlier

Inflation: Things might get 'better' towards Sept-end, says SBI chairman

He said the supply side constraints getting addressed and crude oil prices trending low will help ease the situation

India's July WPI inflation eases to 13.93% as food, fuel prices decline

Wholesale Price Index-based (WPI) inflation was 15.18 per cent last month and at a record high of 16.63 per cent in May. It was 11.57 per cent in July 2021

Inflation: Things might get 'better' towards Sept-end, says SBI Chairman

State Bank of India's (SBI) Chairman Dinesh Khara on Tuesday said that things might get "better" on the inflation front towards the end of September.

WPI inflation eases to 5-month low of 13.93% in July; food prices soften

India's wholesale price inflation in July eased to lowest in five months at 13.93 per cent against 15.18 per cent in June

'Too little, too late': China interest rate cut spurs call for more moves

Unlike many advanced economies right now, China's core inflation -- which excludes volatile energy and food prices -- is pretty tame, slowing to merely 0.8% in July

Israel's inflation rate hits 5.2% as fruits prices hike; highest since 2008

Israel's monthly inflation rate in July was 1.1 per cent, following a 0.4% in June, mainly due to an increase of 8.5% in fresh fruit prices and 3.3% in transport prices

Inflation, labour shortages to delay recovery in business travel spending

A recovery in global business travel spending to pre-pandemic levels is likely to be delayed by 18 months to 2026, a new industry forecast shows

Driven by pouring tourists, Thailand's baht achieves year-end targets

The currency jumped 2.3 per cent to about 35.45 per dollar this month, leading gains in Asia by a wide margin

Secret to enduring stagflation sends investors to emerging markets

Stocks and bonds of poorer nations have sunk this year amid Federal Reserve tightening and runaway consumer prices, and may sell off even more if the global economy stalls

Inflationary impact on FMCG price and margin to continue in Q2: Industry

FMCG companies also expect volume decline to continue in the rural side but see some stabilisation in the business and recovery in demand, starting from the third quarter of FY23

With inflation at 8.9%, Europe bond rally at risk of complacent market

With the worst yet to come in Europe, strategists say policy makers may hike more aggressively than many expect, upending a bond rally that some say has gone too far