DC Edit | Headwinds in economy are a challenge for India
2 years, 7 months ago

DC Edit | Headwinds in economy are a challenge for India

Deccan Chronicle  

The Central government’s decision to all but ban wheat exports, just days after Prime Minister Narendra Modi himself declared India’s intent to feed the world, shows the gravity of rising inflation, which was swept under the carpet to boost the Covid-hit economic growth. However, the export curbs, which were imposed merely a day after the retail inflation — measured through the Consumer Price Index — shot up to an eight-year-high of 7.79 per cent, reflecting the panic among the top decision-makers in the government. Despite India holding the highest foreign reserves since 1947, the rupee bore the brunt of several adverse foreign events, which are beyond the control of the Indian government. According to the RBI, the Indian economy is projected to grow at the rate of 7.2 per cent in the current financial year, which is not by any measure a relief from inflation that was projected to be hovering around 5.7 per cent. Adjusted to inflation, the economic growth rate would be merely 1.5 per cent, which is hardly more attractive to foreign investors than a 2.93 per cent yield that the 10-year US treasury bills give.

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History of this topic

India Expects Relief in Food Inflation with Strong Kharif Harvest
4 weeks, 1 day ago

India Expects Relief in Food Inflation with Strong Kharif Harvest

Deccan Chronicle  

As per the report, India’s retail inflation jumped to 6.21 percent in October, a 14-month high, driven by elevated food inflation in a few vegetables. A bumper kharif harvest is expected to lower food inflation in the coming months," it said, adding that a favourable monsoon, adequate reservoir levels and higher minimum support prices are likely to boost rabi sowing …

DC Edit | RBI may have to defer rate cut
1 month, 1 week ago

DC Edit | RBI may have to defer rate cut

Deccan Chronicle  

Consumer Price Index-based retail inflation has crossed the Reserve Bank of India’s comfort level of four per cent in October at 6.21 per cent, compared to 4.87 per cent in the year ago period. The 14-month high inflation figure in October dashed hopes of a repo rate cut by the Reserve Bank of India during its policy meeting in December. …

Indian wheat prices hit record high on strong demand, supply crunch
1 month, 1 week ago

Indian wheat prices hit record high on strong demand, supply crunch

Deccan Chronicle  

Indian wheat prices have jumped to a record high due to strong demand, limited supplies, and a delay in the government releasing stocks from its warehouses to augment supplies, industry officials said on Tuesday.The record prices are likely to lift retail inflation that surged to a 14-month high in October, driven by a jump in vegetable prices and dashing hopes …

India’s 14-month high retail inflation fades hope of December rate cut
Trending News
1 month, 1 week ago

India’s 14-month high retail inflation fades hope of December rate cut

Live Mint  

New Delhi: India’s retail inflation accelerated in October to its highest in over a year largely due to heated food prices, tempering expectations of a rate cut when the central bank’s monetary policy panel meets early next month. India’s retail inflation also breached the Reserve Bank of India’s medium-term target of 2-6% for the first time in over a year—which, …

No relief for Indians, as inflation rise further to 5.81% in October because of food price surge
1 month, 1 week ago

No relief for Indians, as inflation rise further to 5.81% in October because of food price surge

Live Mint  

Consumer price inflation in India climbed to a 14-month high of 5.81% in October primarily due to a spike in vegetable and edible oil prices, a Reuters poll of economists predicted, a shade below the central bank's tolerance threshold of 6.0%. Annual retail inflation as measured by the consumer price index likely rose a second straight month to 5.81% in …

India's Economy Shows Satisfactory Performance in First Half of FY25, But Risks from Geopolitical Conflicts and Global Factors
1 month, 3 weeks ago

India's Economy Shows Satisfactory Performance in First Half of FY25, But Risks from Geopolitical Conflicts and Global Factors

Hindustan Times  

India's economy performed satisfactorily in the first half of the current financial year, according to the finance ministry's monthly economic report released Monday. However, the ministry warned of potential disruptions from geopolitical conflicts, rising geo-economic fragmentation and elevated valuations in financial markets of some advanced economies.

Flare-up in vegetable prices stalls overall disinflationary trend: RBI officials
5 months ago

Flare-up in vegetable prices stalls overall disinflationary trend: RBI officials

The Hindu  

Consumer price inflation rose in June after three consecutive months of moderation due to a spike in vegetable prices halting a disinflationary trend underway in the economy, Reserve Bank of India officials led by deputy governor Michael D. Patra wrote in the July edition of RBI Bulletin. Headline inflation Headline inflation measured by on year changes in the all-India consumer …

Central bank work on lowering prices in delicate balance
10 months ago

Central bank work on lowering prices in delicate balance

New Indian Express  

The Reserve Bank of India appears to be in its final leg of bringing inflation to heel. Though headline inflation is showing steady signs of easing, the central bank’s six-member Monetary Policy Committee is steadfast on retaining repo rate at 6.5 percent as any “premature move may undermine the success achieved so far”. As we navigate the ‘last mile’ of …

Indian economy is resilient amid global slowdown: Sitharaman
1 year, 1 month ago

Indian economy is resilient amid global slowdown: Sitharaman

Hindustan Times  

The Indian economy is “remarkably resilient” amid a global slowdown because of “solid” domestic demand, moderate inflation, sustained capital expenditure and continued buoyancy in revenue collections, the finance ministry said in its monthly review on Tuesday. “Despite rising input costs, overall sentiment in the services sector remains upbeat, driven, among others, by an upswing in the tourism cum hotel industry …

Inflation preview: India’s CPI expected to be around 4.6-4.9% in October
1 year, 1 month ago

Inflation preview: India’s CPI expected to be around 4.6-4.9% in October

Live Mint  

Thanks to easing food inflation, India's October retail inflation, or consumer price index -based inflation, is expected to come in the range of 4.6-4.9 per cent. According to a Mint poll of 17 economists, India’s retail inflation likely cooled to 4.8 per cent in October from 5 per cent in September. Rahul Bajoria, MD & Head of EM Asia Economics, …

RBI chief warns about India's 'recurring' food shock problem
1 year, 1 month ago

RBI chief warns about India's 'recurring' food shock problem

India Today  

Despite recent declines in retail inflation, India remains susceptible to "recurring and overlapping" food price shocks, cautioned Reserve Bank of India Governor Shaktikanta Das. "In these circumstances, monetary policy remains watchful and actively disinflationary to progressively align inflation to the target, while supporting growth," Governor Das said in a speech delivered in Japan. While retail inflation eased to a three-month …

Retail inflation eases; food prices still bite
1 year, 3 months ago

Retail inflation eases; food prices still bite

The Hindu  

India’s retail inflation eased slightly to 6.83% in August, from the 15-month high of 7.44% in July, but the rise in food prices remained elevated at around 10% and rural consumers continued to face over 7% inflation. Inflation in cereals moderated marginally from around 13% in July to 11.85% in August but pulses prices maintained their pace, rising 13% again, …

ECONOMIC PERSPECTIVES | Why India is unable to curb inflation
1 year, 3 months ago

ECONOMIC PERSPECTIVES | Why India is unable to curb inflation

The Hindu  

Published : Sep 07, 2023 11:00 IST - 6 MINS READ Even as the Indian government celebrates the high growth rates that the increases in official GDP figures signal, it is haunted by the spectre of inflation. Wheat prices at the consumer level, which were falling relative to the previous year in the months preceding October 2021, started to rise …

LPG Subsidy, Onion-Tomato Price Control, Rice Export Cut, Pulses Import: Modi Govt’s 5-pronged War on Inflation
1 year, 3 months ago

LPG Subsidy, Onion-Tomato Price Control, Rice Export Cut, Pulses Import: Modi Govt’s 5-pronged War on Inflation

News 18  

The move to slash LPG cylinder price by Rs 200 and four other recent measures, including price control of key foods like tomato and onion, shows that the Narendra Modi-led central government is going all out against inflation ahead of the upcoming state elections this year and the ultimate 2024 poll battle. From importing pulses to curtailing the export of …

DC Edit | Govt's multi-pronged policy might work against inflation
1 year, 4 months ago

DC Edit | Govt's multi-pronged policy might work against inflation

Deccan Chronicle  

India is not immune to the inflationary winds blowing across the world. Swiftly, government insiders unveiled discussions about a substantial plan, totalling Rs 1 lakh crore, to quell the upswing in July’s inflation. This move would mark a second consecutive year of such manoeuvres, harking back to the Rs 2.1 lakh crores initiative unveiled last year to mitigate costs for …

Runaway prices cast a long political shadow
1 year, 4 months ago

Runaway prices cast a long political shadow

Hindustan Times  

An August 17 report in this newspaper said the government might extend the provision of free food grains under the National Food Security Act and continue to give ₹200 per LPG cylinder to beneficiaries of the Ujjwala scheme. Another report on August 18 noted that the central government is likely to assume a more and more proactive role in managing …

India considering to import 8-9 million tonnes of wheat from Russia amid inflation: Report
1 year, 4 months ago

India considering to import 8-9 million tonnes of wheat from Russia amid inflation: Report

India TV News  

India is reportedly in talks with Russia to import 8 to 9 million tonnes of wheat to help reduce the prices of the commodity in the domestic market, reported TASS news agency citing The Economic Times. Despite India needing only 3 to 4 million metric tonnes of wheat to plug a shortfall, it is considering a bigger import to have …

High food prices may be the new normal
1 year, 4 months ago

High food prices may be the new normal

Hindustan Times  

A vegetable price shock has sent India’s benchmark inflation rate to a 15-month high of 7.4% in July. The jump in headline inflation came despite a moderation in core inflation, which measures the non-food non-fuel part of the Consumer Price Index basket. In the textbook world of inflation targeting, high inflation is taken as a sign of an overheating economy, …

WFP taps India for 200,000 tonnes of rice as global hunger worsens
1 year, 4 months ago

WFP taps India for 200,000 tonnes of rice as global hunger worsens

Live Mint  

New Delhi: The World Food Programme has sought 200,000 tonnes of rice for its humanitarian operations from India, the largest exporter of the commodity, amid what it called “catastrophic levels” of global food insecurity triggered by the covid-19 pandemic and the Ukraine war, two people aware of the development said. The request comes after the UN-brokered Black Sea grain deal, …

July retail inflation may hit 6-mth high of 6.5%: Poll
1 year, 4 months ago

July retail inflation may hit 6-mth high of 6.5%: Poll

Live Mint  

New Delhi: India’s retail inflation is likely to have hit a six-month high of 6.50% in July, sharply up from 4.81% in June, on account of a surge in vegetable prices, according to a Mint poll of 19 economists. The poll predicts consumer price inflation in the range of 5.5-7.5%, with all but two economists expecting inflation to exceed the …

Rising food prices may undo recent respite from inflation
1 year, 4 months ago

Rising food prices may undo recent respite from inflation

The Hindu  

India’s retail inflation may have spiked close to or over the 6% upper tolerance threshold of the Reserve Bank of India in July, owing to a broad-based uptick in food prices, and could remain sticky in coming months, economists reckon. Core inflation may ease State Bank of India group chief economic adviser Soumya Kanti Ghosh is not as sanguine and …

Spiralling food prices: on the build-up of underlying inflation pressures
1 year, 5 months ago

Spiralling food prices: on the build-up of underlying inflation pressures

The Hindu  

Indian households find themselves yet again struggling to cope with a sharp surge in the prices of essential kitchen staples — ranging from tomatoes, onions and potatoes to tur dal and rice. Tomato prices have more than doubled month-on-month with the all-India average retail price as on June 29 soaring to ₹53.59 a kilogram, from ₹24.37 on May 29, data …

Why Telangana has a persistent inflation problem
1 year, 8 months ago

Why Telangana has a persistent inflation problem

Live Mint  

If there is one state that has an inflation that is consistently the highest among its peers, it is Telangana. India’s average inflation for the month of March, as measured by the Consumer Price Index, was 5.66%—a 15-month low and below the Reserve Bank of India’s upper tolerance limit of 6%. Telangana, Andhra Pradesh, Tamil Nadu, Kerala, Uttar Pradesh, Gujarat …

DC Edit | Inflation cools; enrich middle classes now
1 year, 9 months ago

DC Edit | Inflation cools; enrich middle classes now

Deccan Chronicle  

India's consumer price index or retail inflation has decreased by eight basis points in February to 6.44 per cent from 6.52 per cent in January. The retail inflation, which the Reserve Bank of India tracks for its monetary policy, has remained above the central bank’s tolerance level of six per cent for the second month leading to worries of another …

Govt to sell 20 lakh tonnes of wheat in open market to bring down prices
1 year, 10 months ago

Govt to sell 20 lakh tonnes of wheat in open market to bring down prices

India TV News  

In order to control price rise, the government has said that it will sell an additional 20 lakh tonnes of wheat in open market to bring down prices of wheat and wheat floor. "So far, 50 lakh tonnes of wheat have been decided to be offloaded under the OMSS. The reduction in reserve price along with additional offloading of 20 …

Rural demand recovery may drive next bout of inflation in India, say economists
1 year, 10 months ago

Rural demand recovery may drive next bout of inflation in India, say economists

India Today  

The Indian economy could see another bout of inflation as the rural demand revives and the informal sector recovers from the pandemic-lows, economists at HSBC Securities and Capital Markets said. While rural demand was weak in the early part of last year, wage growth, adjusted for inflation, has now surpassed pre-pandemic levels, HSBC's research showed. "Even if the winter crop …

Make farming climate proof
1 year, 10 months ago

Make farming climate proof

Hindustan Times  

At 6.5%, retail inflation in January surprised everyone on the upside. To be sure, the April meeting of the Monetary Policy Committee will have the benefit of having February’s Consumer Price Index data and, more importantly, a better idea about this year’s wheat harvest. The former will pretty much ascertain the validity of RBI’s MPC’s inflation forecast of 5.7% for …

India\'s retail inflation again breaches RBI\'s comfort zone
1 year, 10 months ago

India\'s retail inflation again breaches RBI\'s comfort zone

Deccan Chronicle  

New Delhi: Retail inflation in India again breached RBI's upper tolerance band in the month of January 2023, with the Consumer Price Index pegged at 6.52 per cent, government data released on Monday showed. India's retail inflation, based on Consumer Price Index, during the month of December was at 5.72 per cent, versus 5.88 per cent in November and 6.77 …

India likely to continue curbs on wheat, rice exports
1 year, 10 months ago

India likely to continue curbs on wheat, rice exports

Hindustan Times  

India may extend its ban on wheat exports beyond March and continue curbs on overseas shipments of non-premium varieties of rice to cool local prices and expand the government’s purchases of cereal stocks, which are at their lowest level in five years, two people familiar with the development said. The government banned wheat exports in May last year as overseas …

Centre may continue curbs on wheat export
1 year, 10 months ago

Centre may continue curbs on wheat export

Live Mint  

New Delhi: India may extend its ban on wheat exports beyond March and continue to curb shipments of non-premium rice to tamp down local prices while expanding purchases of cereal stocks that are at their lowest in five years, two people familiar with the development said. The government banned wheat export in May 2022 as shipments quickened due to the …

Costlier wheat hits staples; flour prices get 22% higher
1 year, 10 months ago

Costlier wheat hits staples; flour prices get 22% higher

Hindustan Times  

Wheat prices have remained stubbornly high in India, declining only marginally despite several measures undertaken by the government to cool prices, with a cascading effect on rates of wheat products from atta to biscuits and confectionary. Daily retail wheat flour prices on February 1 were 22% higher on an annualised basis, while wholesale prices leapt 31%, official data show. In …

Some good news on the agriculture front
1 year, 10 months ago

Some good news on the agriculture front

Hindustan Times  

After an unprecedented spring heatwave crimped production last year, India’s wheat yield in 2023 is likely to break a record and touch 112 million tonnes, this newspaper reported on Sunday, buoyed by good weather that pushed acreage under the staple crop to 34.1 million hectares, 12% higher than the five-year average. Officials from the agriculture ministry said that this was …

India to offer 3 million tonnes wheat to bulk consumers to cool prices
1 year, 10 months ago

India to offer 3 million tonnes wheat to bulk consumers to cool prices

Live Mint  

India will provide 3 million tonnes of wheat to bulk consumers such as flour millers, as part of efforts to bring down prices, which jumped to a record high on Wednesday, a government official told Reuters. "There's this consensus that bulk users will be allowed to buy up to 3 million tonnes of wheat from government stocks," said the official …

Data | Vegetable prices in India are on a rollercoaster ride
2 years ago

Data | Vegetable prices in India are on a rollercoaster ride

The Hindu  

On Monday, a member of the Prime Minister’s Economic Advisory Council, Poonam Gupta, expressed her disappointment in the manner in which “monetary policy is held hostage by vegetable prices”. Click to subscribe to our Data newsletter Chart 2 shows the retail inflation of select vegetables in the December months of each year. Every odd year there was inflation of vegetable …

On inflation in India, a silver lining of stability
2 years ago

On inflation in India, a silver lining of stability

Hindustan Times  

After treading above the Reserve Bank of India’s target range for almost a year, India’s consumer price inflation is finally back within the band — registering a 5.9% year-on-year increase in November. However, we Food inflation remains the dominant driver of volatility in consumer price index inflation, despite the sharp pullback in the prices of vegetables and fruits being the …

India set to offer wheat to flour millers, biscuit makers to tame prices
2 years ago

India set to offer wheat to flour millers, biscuit makers to tame prices

Live Mint  

India is set to offer 2 to 3 million tonnes of wheat to bulk consumers such as flour millers and biscuit makers as part of efforts to cool record high prices, two government sources said, even as state reserves have dropped to the lowest in six years. As open market prices rose above the rate at which the government buys …

Retail inflation falls below 6% mark for first time in 2022
2 years ago

Retail inflation falls below 6% mark for first time in 2022

The Hindu  

Cooling vegetable and edible oil prices drove India’s retail inflation down to 5.88% in November from 6.77% in October, the first time since January this year that consumer prices have risen slower than the 6% tolerance threshold set for the central bank. November’s retail inflation numbers corroborate Reserve Bank of India Governor Shaktikanta Das’s point that the worst of inflation …

DC Edit | Promising signs in economy
2 years ago

DC Edit | Promising signs in economy

Deccan Chronicle  

The RBI governor Shaktikanta Das-led Monetary Policy Committee hiked the repo rate by 35 basis points to 6.25 per cent — the fifth straight increase in the current cycle since May 2022 — as it seeks to fight global uncertainty and uncomfortable levels of inflation. The RBI governor’s post-policy meeting comments hint that the central government remains focused on inflation, …

Price increase in wheat & rice normal; will intervene in market in case of abnormal rise: Food Secretary
2 years, 2 months ago

Price increase in wheat & rice normal; will intervene in market in case of abnormal rise: Food Secretary

The Hindu  

The government on October 17 said the price rise in wheat and rice has been "normal" and it will intervene in the market to offload the grains if there is any abnormal increase in the rates. Food Secretary Sudhanshu Pandey, in a press briefing, also said the government has surplus stocks of both wheat and rice in its godowns which …

Data | Rice, wheat push up inflation, but Southern States keep prices low
2 years, 3 months ago

Data | Rice, wheat push up inflation, but Southern States keep prices low

The Hindu  

After decelerating for three consecutive months, India’s retail inflation accelerated to 7% in August 2022. Tamil Nadu, Andhra Pradesh, Kerala and Karnataka were at the bottom of the list when major States were compared for retail food inflation. The retail inflation of rice and wheat/wheat flour — from sources other than PDS — which carries the most weightage among food-related …

Govt refutes reports, says no plan to import wheat as sufficient stocks available
2 years, 4 months ago

Govt refutes reports, says no plan to import wheat as sufficient stocks available

Firstpost  

Earlier this year, multiple rounds of heat waves in several wheat-growing regions in India ahead of the rabi harvest affected some wheat crops New Delhi: India has no plan to import wheat as it has ample stocks to meet the domestic requirements, Department of Food & Public Distribution on Sunday clarified after a media report said India was likely to …

Rain shortage may dampen India’s battle against inflation - here’s why
2 years, 4 months ago

Rain shortage may dampen India’s battle against inflation - here’s why

Live Mint  

India, by far the world's largest exporter of rice, has had a lack of rain in some areas. At a time when nations are struggling with skyrocketing food prices and rife inflation, India's ability to produce rice is in danger. Traders are concerned that a decline in rice production could make India's battle against inflation more difficult and lead to …

Kharif sowing on rise, lower output of rice likely amid patchy rainfall
2 years, 4 months ago

Kharif sowing on rise, lower output of rice likely amid patchy rainfall

Hindustan Times  

The area under most kharif or summer-sown crops critical for the country’s food security rose in the week ended July 29, compared to the same period last year, official data showed on Friday, but experts said they expected lower output of the main staple rice due to a patchy monsoon, potentially pushing up cereal prices. “Since rainfall continues to be …

The cost of misrepresenting inflation
2 years, 5 months ago

The cost of misrepresenting inflation

The Hindu  

Globally, inflation is now the prime concern of governments, even as there is a speculation that a recession may not be far behind. Contrary to the belief that the rise in inflation in India is due to higher international prices, we found that for the commodity groups ‘fuel and light’ and ‘fats and oils’, chosen as proxies for the price …

India exported nearly 30 lakh tonnes of wheat in 2022: Govt
2 years, 6 months ago

India exported nearly 30 lakh tonnes of wheat in 2022: Govt

Live Mint  

The Union government has exported nearly 30 lakh tonnes of wheat in 2022 so far and is mulling requests from some countries for the supply of the grain, the government said on 22 June. Responding on the issue of plans to ban wheat flour export, Food Secretary Sudhansu Pandey said the government is monitoring the situation and would take steps …

Govt mindful of inflation situation, says RBI Governor Das
2 years, 6 months ago

Govt mindful of inflation situation, says RBI Governor Das

The Hindu  

Reserve Bank of India Governor Shaktikanta Das on Wednesday said the government is "mindful" of the current inflation situation, and it is up to the Centre to take further supply-side measures to contain the price rise situation. "I am sure the government is mindful of the current inflation situation and it is for the government to decide on further supply-side …

Prices of wheat, sugar, rice on declining trend after govt measures: Food Secretary
2 years, 6 months ago

Prices of wheat, sugar, rice on declining trend after govt measures: Food Secretary

Firstpost  

After a number of steps we took, it is showing its impact despite all challenges, said Sudhanshu Pandey New Delhi: Retail prices of wheat, rice, sugar and edible oils are showing a declining trend after the measures taken by the government, including curbs on exports of wheat and sugar, Food Secretary Sudhanshu Pandey said on Thursday. The average retail price …

Food security does not need this ‘surgical strike’
2 years, 7 months ago

Food security does not need this ‘surgical strike’

The Hindu  

The Government of India announced a sudden ban on export of wheat on May 13, 2022, a few days after Prime Minister Narendra Modi had stated that “at a time when the world is facing a shortage of wheat, the farmers of India have stepped forward to feed the world”. With the latest announcement, the Government has sent out confusing …

Wheat caught in crossfire: How an export ban is affecting wheat prices
2 years, 7 months ago

Wheat caught in crossfire: How an export ban is affecting wheat prices

India Today  

From war to heatwaves and floods to drought, wheat, a crucial global food, is under attack and is getting more expensive day by day. After India suspended global sales, wheat prices jumped internationally even as they started plunging in the domestic market. IN NUMBERS: The latest government estimate shows that wheat production will be five per cent lower than last …

Domestic wheat prices fall up to 8 per cent after India bans exports
2 years, 7 months ago

Domestic wheat prices fall up to 8 per cent after India bans exports

Op India  

Following the restrictions imposed by the Government of India on wheat export, the price of wheat is coming down for the consumers. Anjani Agarwal, president of Roller and Flour Millers Federation of India, said in a statement that the timely ban on wheat export would increase domestic availability. He said, “The decision to ban wheat export was timely, and it …

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