WPI inflation at 6-month low on cheaper food, fuel

download (3).jpgSource: The Hindu Business Line, Feb 15, 2018

New Delhi: Wholesale inflation eased to a six-month low in January as food articles including fruits and vegetables as well as fuel became cheaper.Data released on Thursday showed that wholesale price index-based inflation stood at 2.84 per cent in January as against 3.58 per cent in December. It was 4.26 per cent in January 2017.

Inflation based on the WPI food index also decreased from 2.91per cent in December, 2017 to 1.65 per cent in January, 2018.

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Retail inflation eases to 5.07% in Jan

download (1)Source: Business Standard, Feb 13, 2018

New Delhi: The economy continued to witness high growth in industrial production in December and retail price inflation in January, despite both declining from their 17-month highs seen in the previous month.

Despite persisting double-digit growth in capital goods and fast-moving consumer goods, the Index of Industrial Production (IIP) expanded at a slower pace of 7.1 per cent in December, from the upward revised 8.8 per cent in November. Provisional estimates had put the November growth at 8.4 per cent. Infrastructure and construction grew 6.7 per cent, against 13.89 per cent in November.

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Average inflation dips to 6-yr low of 3.3% in 2017-18: Economic Survey

Source: The Economic Times, Jan 29, 2018

NEW DELHI: The Economic Survey today said the average retail inflation has declined to a six-year low of 3.3 per cent in 2017-18, with the economy moving towards a more stable price regime. The survey for 2017-18 was tabled by Finance Minister Arun Jaitley in Parliament today. He is scheduled to present the last full budget of the current Narendra Modi-led NDA government on February 1.

“Controlling inflation has been a priority area for the central government,” the survey said, adding that inflation in the country continued to moderate during 2017-18.

Consumer Price Index (CPI) based headline inflation, factored in by the Reserve Bank while arriving at its bi- monthly monetary policy, averaged 3.3 per cent during the period which “is the lowest” in the last six financial years.

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Nov WPI inflation jumps to 3.93% on high onion, veggie prices

download (15).jpgSource: Business Standard, Dec 15, 2017

New Delhi: Inflation based on wholesale prices accelerated to an eight-month high of 3.93 per cent in November due to a sharp rise in onion prices and costlier seasonal vegetables, government data showed on Thursday. Calculated on wholesale price index (WPI), the inflation was 3.59 per cent in October this year, and 1.82 per cent in November last year.

The November figure is the highest so far this fiscal year (FY18) and the previous high was when the WPI touched 3.85 per cent in April.

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Retail inflation jumps to 4.88% in November

download (5).jpgSource: The Economic Times, Dec 13, 2017

Consumer inflation spiked to a 15-month high in November while industrial growth dropped to a 3-month low in October, twin blows for an economy that has shown signs of recovery.

The higher-than-expected retail inflation effectively rules out any rate cuts in the near future by the Reserve Bank of India even as industrial growth remains muted. To be sure, both indicators are likely to improve in the coming months, economists said.

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Retail inflation expected to rise further: Experts

Source: The Economic Times, Nov 19, 2017

NEW DELHI: Retail inflation, which touched a seven-month high in October, is expected to rise further and cross the 4 per cent mark this month, driven by rise in vegetable and oil prices, experts say.According to global financial services majors like Nomura, BofAML and Morgan Stanley, price pressures are likely to build further in the coming months following a cyclical recovery in the economy and rise in vegetable and oil prices.

“We expect CPI inflation to rise above 4 per cent in November and stay above the RBI’s target of 4 per cent through 2018,” Nomura said in a research note.

Stronger food and fuel inflation pushed up headline CPI inflation in October to a 7-month high of 3.58 per cent.

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Higher food prices accelerate retail inflation in October

Source: The Economic Times, Nov 14, 2017

Consumer inflation touched a seven-month high in October denting hopes of rate cut when the Reserve Bank of India reviews the monetary policy next month. Retail inflation, as measured by the consumer price index (CPI) rose to 3.58% in October from 3.28% in September, data released by the government showed.

“While we expect the RBI’s March 2018 projection to be revised down a notch, but October’s CPI and the likelihood that the 4% target will be tested in the next quarter, reinforces our expectations that the RBI will stay on hold in December and rest of FY18,” said Radhika Rao, economist, DBS Bank.

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