November retail inflation slumps to 17-month low on easing food prices

Source: The Economic Times, Dec 12, 2018

NEW DELHI: Retail inflation plunged to a 17-month low in November at 2.33 per cent, mainly on account of decline in prices of kitchen essentials like vegetables, eggs and pulses. 

Retail inflation, which is calculated on the consumer price index (CPI), for October this year has been revised slightly up at 3.38 per cent from 3.31 per cent earlier, data from the Central Statistics Office (CSO) showed Wednesday.

In the year-ago period (November 2017), it was at 4.88 per cent.

Retail inflation, a key input for the RBI to decide on its monetary policy, was lower than this in June 2017 when it stood at 1.46 per cent, as per data by the Ministry of Statistics and Programme Implementation (MOSPI). The CSO comes under MOSPI.  Read the rest of this entry »

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RBI lowers inflation projection to 2.7-3.2 pc in H2 FY19

Source: IBEF.org, Dec 06, 2018

Mumbai: The Reserve Bank Wednesday lowered retail inflation projection in the range of 2.7-3.2 per cent for the second half of the current fiscal, citing normal monsoon and moderate food prices.

The broad-based weakening of food prices imparts downward bias to the headline inflation trajectory going forward, the RBI said in its fifth bi-monthly monetary policy announced here.

Meanwhile, the central bank maintained status quo in monetary policy announcement, leaving the key interest rate unchanged at 6.5 per cent.

In its previous policy review in October, the apex bank had projected the retail inflation to be around 3.9-4.5 per cent in the October-March period of 2018-19. Read the rest of this entry »

WPI surges to four month high of 5.28% in October on dearer fuel

Source: The Economic Times, Nov 14, 2018

Higher inflation in manufactured products and fuel made India’s wholesale price inflation (WPI) surge to 5.28% in October from 5.13% in September, data released by the commerce and industry ministry on Wednesday showed.

WPI was 3.68% in October last year.

Inflation in fuel and power rose 18.44% from 16.65% in September and that in manufactured products 4.49% in October from 4.22% in the trailing month.

“The rate of inflation based on WPI Food Index consisting of ‘food articles’ from primary articles group and ‘food product’ from manufactured products group decreased from 0.14% in September, 2018 to -0.64% in October, 2018,” the ministry said in an official release.

Inflation in cereals, wheat and potato increased 6.24%, 9.49% and 93.65%, respectively while the growth of inflation in paddy slowed to 4.08% in October.

Data released on Monday showed a decline in India’s retail inflation to 3.31% in October from 3.7% in September

In the wholesale basket, the pace of decline in inflation slowed for pulses but rose in onions and, eggs and meat.

Retail inflation cools to 3.31%, lowest in a year in October

Source: Business Standard, Nov 13, 2018

New Delhi: Retail inflation rate fell to a one-year low of 3.31 per cent in October on the back of cheaper kitchen staples, fruits and protein-rich items, data released on Monday showed. The inflation remained below the four per cent mark, the average of the range that the Reserve Bank of India (RBI) is statutorily mandated to keep the inflation, for the third month in a row now.

The inflation, based on the Consumer Price Index (CPI), was 3.7 per cent in September this year and 3.58 per cent in October 2017. The retail inflation number is the lowest since September 2017 when it touched 3.28 per cent.

Food items saw fall in prices at 0.86 per cent in the month compared to 0.51 per cent inflation in the previous month, showed an official release.

Experts believe the monetary policy committee may retain the policy rate in its meeting next month despite core inflation (inflation minus food and fuel) showing some signs of concern. Read the rest of this entry »

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 »