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US inflation hits 40-year-high, at 9.1 per cent in June
The inflation rate rise was the largest 12-month increase since the period ending November 1981. The US Bureau of Labour Statistics said: "Over the last 12 months, the all items index increased 9.1 percent before seasonal adjustment." "The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.3 per cent in June on a seasonally adjusted basis after rising 1.0 per cent in May," it said.
Inflation in India to be about 5% by March 23
In a research report, the SBI also said the 7.01 per cent consumer price index (CPI) inflation announced by the Indian government on Tuesday for June 2022 confirms the fact that the peak point has passed. According to the SBI report, CPI inflation attributable to supply side factors started moving up after September'21 while demand led CPI remained more or less constant.
Retail inflation eases slightly to 7.01% in June
India's retail price inflation marginally eased and stood at 7.01 per cent at the end of June, as compared to that of May, the government said on Tuesday. As per the data released by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation, the retail price inflation at the end of June was 7.01 per cent (rural 7.09 per cent, urban 6.92 per cent), as compared to 7.04 per cent in May (rural 7.08 per cent, urban 7.08 per cent).
High commodity prices continue to weigh on trade deficit, estimate for FY23 at $90bn: Acuite
Nevertheless, there is considerable uncertainty in projecting trade and current account deficit due to high volatility in commodity prices, which in the current environment is taking cues from unpredictable geopolitical events. "Given, the relentless rise in commodity prices particularly crude oil which has again risen to $120 per barrel, we project current account deficit (CAD) to widen to more than $90 billion (in FY23) from an estimated $47 billion in FY22.
World food commodity prices declined modestly in May: FAO
The FAO Food Price Index averaged 157.4 points in May 2022, down 0.6 per cent from April. The Index, which tracks monthly changes in the international prices of a basket of commonly-traded food commodities, however, remained 22.8 per cent higher than in May 2021. The FAO Cereal Price Index increased by 2.2 per cent from the previous month, led by wheat prices, which were up 5.6 per cent from April and 56.2 per cent from their corresponding value a year earlier.
Rice, flour, tomatoes responsible for increase in All-India CPI-IW
On a one month percentage change, it increased by 1.35 per cent with respect to the previous month compared to an increase of 0.42 per cent recorded between corresponding months a year ago. The maximum upward pressure in the current index came from the Food and Beverages group contributing 0.80 percentage points to the total change.
Germany's inflation reaches highest level since 70s oil crisis
Amidst wheat shortages and fears of a global food crisis, food prices increased by 11.1 per cent, while energy prices soared by 38.3 year-on-year, Xinhua news agency quoted Destatis as saying. The spike in energy prices has been caused by the Russia-Ukraine war, and has had a "considerable impact on the high inflation rate", the Office said.
Inflation top problem facing US: Survey
Nearly 70 per cent said inflation is "a very big problem" for the country, followed by nearly 55 per cent for healthcare affordability and violent crime, based on the poll of 5,074 US adults in April and May 2022, Xinhua news agency reported. However, responses varied by political affiliation, with 84 per cent of Republicans and right-leaning independents saying inflation is the top issue. By contrast, 57 per cent of Democrats and left-leaning independents were most concerned about rising prices.
Consumer inflation at 8-year high may 'trigger' quicker rate hikes
"If inflation pressures continue to mount there is a likelihood of additional hikes thereby taking the rate to its pre- pandemic level of 5.15 per cent or even higher in FY23. Additionally, we also expect CRR to be hiked by another 50 bps by H1FY23," Acuite Ratings said. Given the tone of urgency in RBI's statement to support the altered inflation-growth dynamics, "we now revise our call and expect the RBI to hike repo rate by an additional 60 bps in the rest of FY23".
Price Woes: Fertiliser subsidy bill set to touch Rs 1.65 lk cr
As per Crisil Ratings, in the past two fiscals, it has paid an additional Rs 1.2 lakh crore and increased the budgeted subsidy. However, the credit ratings agency said that steep rise in raw material prices has been negating this, and another intervention may be needed in this fiscal. Not doing so would take the subsidy arrears to an all-time high of over Rs 75,000 crore by end of this fiscal, it said.
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