Inflation
CPI numbers for March '23 could be even lower than 5%: SBI Ecowrap
On Friday, data by Ministry of Statistics and Programme Implementation showed that the CPI inflation moderated to 5-months low to 6.71 per cent in July due to easing of food inflation, while, core CPI also moderated to 10-months low to 5.79 per cent in July. Telangana clocked the highest inflation rate of 8.58 per cent in July, compared to 10.05 per cent in June. Further, Telangana's rural inflation is above the urban inflation. Internationally, the inflation in the US has also moderated which increases expectations that US Fed will go slow on rate hikes.
CPI inflation eases to 6.71% in July, IIP falls to 12.3%
Easing inflation can be attributed to price cuts on edible oil and easing commodity prices globally. Even though the CPI inflation has eased, it still remained above the Reserve Bank of India's (RBI) upper tolerance band. The overall goods inflation came in at 6.75 per cent as compared to 7.75 per cent in the previous month, while, inflation in vegetables was at 10.9 per cent in July.
Policy rate hike to control inflation, 50bps the new normal with many central banks: RBI Governor
The policy or the repo rate is the interest rate at which the RBI lends short-term funds to commercial banks. The RBI hikes the rate generally during an inflationary time to curtail liquidity in the economy. According to Das, the overall liquidity in the system is upwards of Rs 5 lakh crore touching Rs 6 lakh crore. Das said the RBI's Monetary Policy Committee (MPC) takes a calibrated view of aspects like growth, demand and makes a balanced call in terms of rate hike.
Average inflation rate highest in 2022, at 6.82%, since 2014
As per the government data, the average inflation was 6.65 per cent in 2014, came down to 4.91 in 2015 and further slipped to 3.33 in 2017. Even in 2019, it was 3.72 per cent but jumped to 6.62 in 2020. Average inflation rate in 2021 was 5.14 per cent. The National Statistical Office (NSO) releases the inflation rate on the 12th of every month (next working day if 12th is a holiday), based on the Consumer Price Index (CPI).
Factors leading to rise in inflation in India
Retail inflation tracked by the Consumer Price Index (CPI) measures the changes in prices from a retail buyer's perspective. The CPI Inflation has been rising since September last year and remained above upper tolerance band of the Reserve Bank of India (RBI) for straight six months starting from January this year. CPI numbers has seen a sharp rise in April at 7.79 per cent, followed by 7.04 per cent in May this year.
Reduction in rice, cereals sown area worrisome: Bank of Baroda
The sowing area for rice declined by 17.4 per cent. According to the report, the uptick in the rainfall has resulted in pick-up of kharif sowing which rose by 0.1 per cent. Out of 36 subdivisions, only 7 have received deficient rainfall during this period. "However, there has been uneven distribution of rainfall and there is growing concern that this might translate in to lower sowing, resulting in lower production.
Britain's inflation hits fresh 40-year high as fuel, food prices surge
On a monthly basis, the country's CPI rose by 0.8 per cent in June 2022, compared with a rise of 0.5 percent in June 2021, according to the Office for National Statistics (ONS). The increase in annual inflation was driven by rising fuel and food prices, and these were only slightly offset by falling second-hand car prices, said Grant Fitzner, ONS chief economist.
2.50L tonnes of onions procured to meet lean season demand
The onions were procured from the current rabi harvest for the price stabilisation buffer. The stocks have been procured by National Agricultural Cooperative Marketing Federation of India (NAFED) from farmers through the Farmer Producer Organisations (FPOs) in rabi onion growing states of Maharashtra, Gujarat and Madhya Pradesh.
US inflation at record high as WPI, CPI indices soar
Inflation as measured by producer wholesale prices ticked up to a red-hot 11.3 per cent for the year ending in June, near the highest record, according to a report from the Bureau of Labor Statistics. Thursday's report comes a day after headline inflation as measured by the consumer price index exploded to 9.1 per cent for the 12 months ending in June, the highest level since 1981 and a bigger increase than expected.
WPI-based inflation dips slightly to 15.18% for June
The high rate of inflation in June is primarily due to rise in prices of mineral oils, food articles, crude petroleum and natural gas, basic metals, chemicals and chemical products, food products, as compared to the corresponding month of the previous year. it said. The WPI Food Index, which has a weight of 24.38 per cent, and comprises 'Food Articles' from Primary Articles group and 'Food Products' from Manufactured Products group, has increased from 176.1 in May to 178.4 in June.
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