India’s wholesale inflation rises to 5.13% in September from 4.53%

Source: Business Standard, Oct 16, 2018

New Delhi: The wholesale price index (WPI)-based inflation rate surged to 5.13 per cent in September from 4.53 per cent in the previous month, reflecting an increase in the rate of non-food articles’ price rise.

Though CPI inflation also rose in September compared to the previous month, the price rise was higher in WPI. CPI inched up to 3.77 per cent in September from 3.69 per cent in August.

This may be due to a higher weight of food items — over 45 per cent — in CPI than 15 per cent in WPI.

Food prices continued to fall for the third consecutive month in a row even as the rate of decline slowed in September. Food deflation came down to 0.21 per cent in September from 4.04 per cent in August. It stood at 2.10 per cent in July. Read the rest of this entry »


India’s September retail inflation rises marginally to 3.77%

Source: The Economic Times, Oct 12, 2018

India’s retail inflation rose marginally in September, nudged up by food and fuel prices, but short of the central bank’s 4 percent medium-term target, strengthening views it could tighten monetary policy in December following unchanged rates last week.

The monetary policy committee (MPC) of the Reserve Bank of India left the repo rate at 6.50 percent while reiterating its target of keeping consumer inflation at 4.00 percent in the medium term on a “durable basis”.”

In September, consumer prices rose 3.77 percent from a year earlier, compared with a 3.69 percent increase in August, the Statistics Ministry said on Friday. Read the rest of this entry »

Retail inflation for industrial works rises to 5.61pc in August

Source: The Economic Times, Oct 01, 2018

Retail inflation for industrial workers rose to 5.61 per cent in August from 2.52 per cent in the year-ago month mainly due to rise in prices of food items and petroleum products. “The year-on-year inflation based on CPI-IW remained stagnant at 5.61 per cent for August, 2018 as compared to the previous month and 2.52 per cent during the corresponding month of the previous year,” a Labour Ministry statement said.

According to the statement, the food inflation was (-) 0.32 per cent in August as compared to 1.61 per cent during the year-ago period. Read the rest of this entry »

Retail inflation cools to 3.69% in August

download (1).jpgSource: The Hindu Business Line, Sept 12, 2018

New Delhi: For many hapless consumers who are ravaged by the effects of the weak rupee and soaring domestic fuel prices, there was some solace on Wednesday in the form of good news on the retail inflation and industrial output front.

Retail inflation came in at a 10-month low of 3.69 per cent for August as compared to 4.17 per cent in the previous month. However, the latest Consumer Price Index (CPI)-based inflation print was higher than the 3.28 per cent level recorded in August last year.

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Inflation cools to 9-month low of 4.17% in July, down from 4.9% in June

Source: The Economic Times, Aug 13, 2018

NEW DELHI: Retail inflation in the country eased more than expected to a nine-month low in July due to a sharp decline in price increase of food and beverages, kindling hopes that the Reserve Bank of India will stop raising interest rates.

Inflation based on consumer price index (CPI) eased to 4.17% in July from 4.92% in June while food inflation more than halved to 1.37% from 2.91%, data released by Central Statistics Office (CSO) on Monday showed. Economists expected consumer inflation of about 4.5% in July. Read the rest of this entry »

RBI strikes another blow in inflation fight

Source: The Hindu Business Line, Aug 01, 2018

Mumbai: The Monetary Policy Committee of the Reserve Bank of India on Wednesday decided to increase the repo rate by 25 basis points to 6.5 per cent, as it remained concerned about rising inflation.

“Consequently, the reverse repo rate under the LAF stands adjusted to 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.75 per cent,” the RBI said in its the third bi-monthly monetary policy statement.Though the prices remained below its estimated trajectory, the RBI has forecast retail inflation at 4.6 per cent in the second quarter of the fiscal, 4.8 per cent in the second half of the fiscal and five per cent for the first quarter of 2019-20.

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Inflation likely to average 4.7% this fiscal, RBI may tighten rates

Source: Business Standard, Jul 26, 2018

New Delhi: A good monsoon notwithstanding, inflation is expected to average 4.7 per cent in the current fiscal, up from 3.6 per cent last year and Reserve Bank of India is likely to tighten the key interest rates in the coming months, says a DBS report.

According to the global financial services major, good rains will support agricultural growth but a material respite to inflation will hinge on factors like oil prices, the value of rupee against the US dollar and fiscal dynamics.India’s southwest monsoon has recovered in the past week. Crop sowing activity is catching up, along with an improvement in the reservoir levels.

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