WPI inflation slips to 3.07% in April on cheaper manufacturing products

Source: The Economic Times, May 14, 2019

NEW DELHI: India’s wholesale inflation eased in April on cheaper fuel and manufactured items, even as the pace of price rise quickened in the case of food articles, according to data released by the commerce and industry ministry on Tuesday. Read the rest of this entry »

WPI inflation rises to 3.18% in March on costlier food & fuel

Source: The Economic Times, Apr 15, 2019

Wholesale price-based inflation rose for the second consecutive month to 3.18 per cent in March on costlier food and fuel, government data released Monday showed.

The Wholesale Price Index (WPI) based inflation was at 2.93 per cent in February. It was 2.74 per cent in March 2018.

Inflation in food articles hardened with steep rise in prices of vegetables during March 2019.

Vegetables inflation was at 28.13 per cent in March, up from 6.82 per cent in the previous month. However, inflation in potato cooled substantially to 1.30 per cent, from 23.40 per cent in February.

Inflation in food articles basket was 5.68 per cent during March. Read the rest of this entry »

Retail inflation seen inching up in March, but still below RBI target

Source: The Hindu Business Line, Apr 09, 2019

Bengaluru: India’s retail inflation is expected to have accelerated in March on slightly higher food prices but remain under the Reserve Bank of India’s (RBI) medium-term target of 4 per cent, a poll predicted.

If the forecast is realized, March will be the eighth month in a row with below-target inflation, giving the RBI room to squeeze in another rate cut this year.

According to the median consensus of over 40 economists, consumer prices rose at an annual rate of 2.80 per cent in March, up from 2.57 per cent in February. Read the rest of this entry »

RBI cuts inflation forecast to 2.9-3% for H1 FY20

Source: The Hindu Business Line, Apr 04, 2019

Mumbai: The Reserve Bank on Thursday cut the retail inflation forecast to 2.9-3 per cent for the first half of current fiscal, mainly due to lower food and fuel prices as well as expectation of a normal rainy season. The RBI has reduced the key policy rate by 25 basis points to 6 per cent.

The inflation path during 2019-20 is likely to be shaped by several factors. First, low food inflation during January-February will have a bearing on the near-term inflation outlook.

Second, the fall in the fuel group inflation witnessed at the time of the February policy has become accentuated, RBI said in its first bi-monthly monetary policy for 2019-20. Read the rest of this entry »

Food inflation may rise up to 2% in FY20: Report

Source: The Economic Times, Mar 26, 2019

MUMBAI: Food inflation in the country is likely to go up to 2% in fiscal year 2019-20 from the 0.7% estimated for FY19, a report said on Monday.

It can be noted that the low food prices have been one of the prime factors which has aided the RBI to be more accommodatory in its rate setting recently.

In the report, foreign brokerage Goldman Sachs attributed the low food prices in the last few months to the prices of cereals and vegetables which have been low for some time.

Deregulation of markets, which saw delisting of vegetables from the Agriculture Produce and Marketing Committee Act (APMC) in 14 states, has helped the vegetable prices, it said. Read the rest of this entry »

Wholesale inflation firms up in Feb on dearer food, fuel

Source: The Economic Times, Mar 14, 2019

NEW DELHI: Higher food and fuel inflation pushed India’s wholesale inflation to 2.93% in February from 2.76% in January, data released by commerce and industry ministry showed on Thursday.

WPI was 2.74% in February 2018.

“The rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group increased from 1.84% in January to 3.29% in February,” the government said in a statement.

Fuel and power inflation which has a weightage of 13.15% in WPI, grew to 2.23% in February, as against 1.85% in January.

Inflation of primary articles, which includes kitchen essentials like potato, onion, fruits, and milk was 4.84% compared with 3.54% in January.

The government also revised downwards the wholesale inflation for December to 3.46% from 3.8% earlier.

Industrial growth slows down in January, inflation hits a 4-month high

Source: The Economic Times, Mar 13, 2019

NEW DELHI: Industrial growth slipped in January, failing to build on modest recovery in the month before while consumer inflation inched up in February though remaining well below the central bank’s target, strengthening the case for another rate cut in the next monetary policy review.

Inflation, as measured by the Consumer Price Index (CPI), rose to a four-month high of 2.57% from 1.97% in January, data released by the statistics office on Tuesday showed.

The simultaneously released Index of Industrial Production (IIP) showed a 1.7% rise in industrial output in January. Industrial growth was 2.6% in December, revised upward from 2.4% estimated initially. Read the rest of this entry »