July retail inflation at 3.15%, experts advise caution on floods

Source: The Economic Times, Aug 13, 2019

Consumer price index-based retail inflation eased marginally to 3.15 per cent in July on the back of softening fuel and light prices, even as overall food prices moved up, government data showed on Tuesday.

Retail inflation was 3.18 per cent in June 2019, while it stood at 4.17 per cent in year-ago period (July 2018).

The overall food inflation, measured on Consumer Food Price Index (CFPI), moved up to 2.36 per cent during July from the revised 2.25 per cent print for June 2019, as per data released by the Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation. Read the rest of this entry »

India’s inflation rose to nine-month high in July over food prices: Report

Source: Business Standard, Aug 07, 2019

Bengaluru: India’s retail inflation rose for the sixth straight month in July – the longest stretch of monthly increases since January 2016 – to a nine-month high, largely due to a continued rise in food prices, a Reuters poll predicted.

Despite rising, inflation is expected to remain below the Reserve Bank of India’s medium-term target of 4%, clearing the way for more policy easing.

The July 31-Aug. 6 poll of 30 economists showed retail inflation rose to 3.20% in July from a year ago, a touch above June’s 3.18%.

The expected rise in inflation was mainly based on an increase in food prices and fuel costs – the biggest components of the consumer price index. Food prices have risen due to lower-than-expected monsoon rains over the past two months. Read the rest of this entry »

WPI inflation eases to near two-year low at 2.02% in June

Source: Business Standard, Jul 16, 2019

New Delhi: Contrary to its consumer price index (CPI) counterpart, the wholesale price index- (WPI-) based inflation rate softened to a 23-month low of 2.02 per cent in June.

However, the core inflation rate (non-food, non-oil) in both CPI and WPI eased, prompting experts to expect another rate cut by the Reserve Bank of India’s monetary policy committee (MPC), which is slated to meet in the first week of next month.

Data, released by the government last week, showed that the CPI inflation rate, in fact, rose to an eight-month high of 3.18 per cent in the month.

The divergence could be due to high weight of food items in CPI — over 45 per cent — than over 15 per cent in WPI. Read the rest of this entry »

Government sets up working group to revise WPI, give roadmap to shift to PPI

Source: The Economic times, Jun 27, 2019

NEW DELHI: The government has set up a working group under Niti Aayog member Ramesh Chand to revise the current series of Wholesale Price Index (WPI) with base 2011-12 and devise a new Producer Price Index (PPI).

The 18-member group may recommend a roadmap for switch over from WPI to PPI, the commerce and industry ministry said in a statement on Thursday. PPI measures the average change in the price a producer receives for his goods and services sold in the domestic market and exports. Read the rest of this entry »

Wholesale inflation at 2-year low of 2.45%; food inflation eases to 6.99%

Source: Business Standard, Jun 15, 2019

New Delhi: Charting a divergent path from its retail price counterpart, the wholesale price index- (WPI)-based inflation rate fell to a 22-month low at 2.45 per cent in May, reflecting weak demand in the economy.

The WPI inflation rate in May is the lowest since July 2017, when it was at 1.88 per cent. The food inflation, too, declined from over 30-month high of 7.37 per cent in April, but it still remained at an elevated level of 6.99 per cent.

Sunil Kumar Sinha, principal economist at India Ratings, said despite a lower rate of price rise in May compared to April, stress is emerging in food articles category. Read the rest of this entry »

Retail inflation spikes to 7-month high of 3.05% in May on costlier food articles

Source: The Economic Times, Jun 12, 2019

NEW DELHI: India’s retail inflation rate hit a seven-month high in May due to higher food prices, government data showed on Wednesday, but stayed below the central bank’s target and potentially gives it room for more interest rate cuts to help a sluggish economy.

Annual retail inflation in May was 3.05%, up from the revised 2.99% in the previous month, and above forecasts by analysts.

A Reuters poll had predicted a retail inflation rate of 3.01% for May.

Core consumer inflation, which strips out food and fuel prices, was estimated at 4.1-4.2% in May, lower than April’s 4.53%-4.57%, three analysts said after seeing the inflation figures on Wednesday. Read the rest of this entry »

Govt takes a few decisions to control food inflation

Source: The Economic times, Jun 11, 2019

Pune: Government of India on Tuesday took a series of decisions to control food inflation in the country.

To tame the upward movement in prices of pulses, Ram Vilas Paswan, Union Minister of Consumer Affairs, Food and Civil Supplies announced that the government will sell 2 lakh tonne of tur dal from the buffer stock.

“We will issue licences for import of pulses within 10 days by sorting the applications received so far,” tweeted Paswan.

Government has issued order for import of 2 lakh tonnes of tur dal on June 4. The government has also decided to double the import quota of tur from 2 lakh tonnes to 4 lakh tonnes. Read the rest of this entry »