Staying the course: The Hindu Editorial on monitoring inflation
2 years, 3 months ago

Staying the course: The Hindu Editorial on monitoring inflation

The Hindu  

Over this week, Finance Minister Nirmala Sitharaman spoke at length on India’s inflation battle, signalling it is no longer as ‘red-lettered’ a priority as there are more big picture pursuits such as creating jobs, sustaining growth and ensuring equitable wealth distribution. The Finance Ministry expects inflationary pressures to be ‘capped’ due to steps taken by the central bank and the Government since consumer inflation hit an eight-year high of 7.8% this April and the recent dip in commodity prices. While headline monthly numbers affect sentiment, a prolonged spell of high inflation is more deleterious for households’ ability and propensity to spend, denting demand and growth impulses that may catalyse fresh investments from industry. The RBI believes that inflation has peaked in India, but Deputy Governor Michael Patra is not entirely convinced about the ‘durability’ of moderating prices despite lower commodity costs, noting that upside risks persist.

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Retail inflation eases to 5.48% in November from above 6% in October
1 week, 5 days ago

Retail inflation eases to 5.48% in November from above 6% in October

India Today  

India's retail inflation cooled to 5.48% in November, slipping below the Reserve Bank of India’s upper tolerance band of 6% after breaching it in October. "High inflation reduces the disposable income in the hands of consumers," Das noted, adding that food inflation could stay elevated through the third quarter of FY25 before easing. Expected revisions could lower food’s weightage by …

DC Edit | Will RBI tweak inflation focus?
1 week, 6 days ago

DC Edit | Will RBI tweak inflation focus?

Deccan Chronicle  

The appointment of Sanjay Malhotra as the new RBI governor continues the long-standing tradition of IAS officers heading the Central bank, a quasi-autonomous body that decides the country’s monetary policy. Mr Malhotra took over the charge of RBI from Shaktikanta Das — the second longest serving governor after Sir Benegal Rama Rau’s stint of seven years and 197 days — …

​Staying the course: On the RBI and inflation
Trending News
2 weeks, 3 days ago

​Staying the course: On the RBI and inflation

The Hindu  

The Reserve Bank of India’s Monetary Policy Committee, in its latest bi-monthly review, has decided to maintain status quo on the benchmark interest rate of 6.50% for the eleventh consecutive time. India’s retail inflation, after trending below the median 4% target, for the first time in five years, for two months, spiked over September and October, with food prices leading …

Is MPC doing enough on inflation? Consumers are divided
3 weeks ago

Is MPC doing enough on inflation? Consumers are divided

Live Mint  

Mumbai: For the past 30 months, the Reserve Bank of India’s monetary policy committee has been fighting hard to bring inflation within its medium-term target of 4%. Nearly half of the total respondents surveyed favoured lower inflation and higher interest rates, and only 22% support the reverse. Governor Shaktikanta Das has repeatedly warned since the last policy that cutting rates …

India’s central bank should adhere to its inflation-targeting mandate
Trending News
1 month ago

India’s central bank should adhere to its inflation-targeting mandate

Live Mint  

Less than four years after the government concluded its review of India’s inflation-targeting regime in April 2021 and opted to keep both its target and nitty-gritty—its target range, indicator, etc—unchanged, its view of inflation targeting seems to be shifting. After commerce and industry minister Piyush Goyal and then finance minister Nirmala Sitharaman called for lower interest rates, on Tuesday chief …

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 Robust Economy Maintains Stability, Sets New Fiscal Deficit Target
2 months ago

India's Robust Economy Maintains Stability, Sets New Fiscal Deficit Target

Hindustan Times  

India successfully kept inflation within manageable limits, achieving the lowest point in its fiscal deficit glide path in the next financial year. The country's robust macroeconomic fundamentals, coupled with strategic focus on strengthening ties with nations that share strategic coherence, played a crucial role in maintaining price stability despite global economic challenges. The focus on debt management and fiscal consolidation …

'We Still Have Distance To Cover', Says RBI Guv Shaktikanta Das Amid Moderate Inflation
3 months, 1 week ago

'We Still Have Distance To Cover', Says RBI Guv Shaktikanta Das Amid Moderate Inflation

News 18  

Inflation in India has moderated but still, there is a distance to cover, Reserve Bank Governor Shaktikanta Das said on Friday. “Inflation has moderated from its peak of 7.8% in April 2022 into the tolerance band of +/- 2% around the target of 4%, but we still have a distance to cover and cannot afford to look the other way,” …

RBI MPC 2024: RBI can’t ignore food inflation while framing monetary policy: RBI Governor Shaktikanta Das
4 months, 2 weeks ago

RBI MPC 2024: RBI can’t ignore food inflation while framing monetary policy: RBI Governor Shaktikanta Das

The Hindu  

Reserve Bank of India Governor Shaktikanta Das on Thursday said that the central bank can not ignore food inflation while formulating monetary policy. Mr Das said with “high share of food in the consumption basket, food inflation pressures cannot be ignored.” Further, the public at large understands inflation more in terms of food inflation than the other components of headline …

DC Edit | Cautious RBI targets inflation
8 months, 2 weeks ago

DC Edit | Cautious RBI targets inflation

Deccan Chronicle  

The Reserve Bank of India-led Monetary Policy Committee has once again kept the policy repo rate unchanged at 6.5 per cent. Retail inflation hovered around 5.1 per cent during January and February 2024, which is a marginal decline from 5.7 per cent in December 2023. Food inflation — which is the most important focus area for the world’s populous country …

Inflation still at 5.1%, but food prices rise
9 months, 1 week ago

Inflation still at 5.1%, but food prices rise

The Hindu  

India’s retail inflation remained virtually unchanged at 5.09% in February, even as food prices paid by consumers resurged from 8.3% in January to 8.66% spurred primarily by vegetables, which rose at a seven-month high pace of 30.25%. Inflation measured by the Consumer Food Price Index accelerated from 9% in January to 9.2% for urban residents, while rural India experienced an …

RBI’s battles with inflation
10 months, 2 weeks ago

RBI’s battles with inflation

Hindustan Times  

That the Monetary Policy Committee would not change policy rates or its stance in its February meeting was widely expected. One, Reserve Bank of India seems to believe, perhaps rightly, that the monetary tightening unleashed by it in the last two years — the policy rate has been increased by 250 basis points — has not hurt growth. Despite core …

Finance Minister Sitharaman Assures Control Over Retail Inflation
10 months, 2 weeks ago

Finance Minister Sitharaman Assures Control Over Retail Inflation

Deccan Chronicle  

: Union finance minister Nirmala Sitharaman on Tuesday said that headline retail inflation would be kept in check as the steps were taken by the government to contain price rise, especially in perishable commodities. Since we don’t grow enough pulses in the country and due to a shortfall in supply, prices of pulses normally keep fluctuating, for which, by analysing …

After many difficult quarters economic scenario turning more benign in terms of inflation, growth: MPC’s Varma
1 year ago

After many difficult quarters economic scenario turning more benign in terms of inflation, growth: MPC’s Varma

The Hindu  

Containing inflation and reviving growth remained the key concerns among Monetary Policy Committee members as evident in the minutes of the last meeting released by the Reserve Bank of India on Friday. “Current indications are that, after many difficult quarters, the economic environment is turning more benign in terms of both inflation and growth,” observed MPC member Jayant Varma. “The …

MPC minutes: Inflation outlook clouded by food prices, weather shocks, says RBI Guv
1 year ago

MPC minutes: Inflation outlook clouded by food prices, weather shocks, says RBI Guv

Hindustan Times  

Reserve Bank of India governor Shaktikanta Das, in the December’s monetary policy meet, said that there is uncertain inflation outlook due to volatile food prices and weather shocks, according to minutes of the meeting released on Friday. During the monetary policy committee meeting held between December 6 to 8, all members — Shashanka Bhide, Ashima Goyal, Jayanth R. Varma, Rajiv …

Retail inflation is stable now, asserts Finance Minister Nirmala Sitharaman
1 year ago

Retail inflation is stable now, asserts Finance Minister Nirmala Sitharaman

The Hindu  

December 11, 2023 02:14 pm | Updated 04:17 pm IST - NEW DELHI The country’s consumer price inflation is now “stable” and within the official tolerance band of 2% and 6%, Finance Minister Nirmala Sitharaman conveyed to the Lok Sabha on Monday, attributing the weakening price rise pressures largely to a steady drop in core inflation. The core inflation has …

Growth getting stronger foothold, inflation coming under control, says RBI Governor Shaktikanta Das
1 year, 1 month ago

Growth getting stronger foothold, inflation coming under control, says RBI Governor Shaktikanta Das

The Hindu  

Reserve Bank Governor Shaktikanta Das on November 9 said economic growth in India is getting stronger foothold while inflation is also coming under control driven by the inherent dynamism and a prudent policy mix. Driven by its inherent dynamism and supported by a prudent policy mix, growth is getting stronger foothold while inflation is also coming under control," the governor …

Fear factor: The Hindu Editorial on the inflation battle
1 year, 2 months ago

Fear factor: The Hindu Editorial on the inflation battle

The Hindu  

Inflation faced by consumers eased to 5% in September, bringing some relief after a sharp rally in prices that began with July’s 15-month high inflation rate of 7.44%. So, September’s 5% inflation, which was partly aided by base effects from 2022 when the inflation pace was 7.4% and partly by a sharp dip in volatile prices of tomatoes and vegetables, …

Sunak’s inflation pledge goes down to the wire after petrol price shock
1 year, 2 months ago

Sunak’s inflation pledge goes down to the wire after petrol price shock

The Telegraph  

Chancellor Jeremy Hunt said on Wednesday: “As we have seen across other G7 countries, inflation rarely falls in a straight line, but if we stick to our plan then we still expect it to keep falling this year. The new Ofgem price cap, which has seen typical household bills drop from £1,976 a year to £1,834, will be reflected in …

Tightrope walk: The Hindu Editorial on RBI holding rates
1 year, 2 months ago

Tightrope walk: The Hindu Editorial on RBI holding rates

The Hindu  

The decision of the RBI’s Monetary Policy Committee to leave interest rates unchanged even as the central bank warned of the major risk that ‘high inflation’ poses to macroeconomic stability is a clear sign that monetary authorities find themselves caught in a cleft stick. After a relatively benign first quarter, when headline retail inflation averaged 4.63% as against the RBI’s …

Why inflation will keep policymakers guessing, impact festive spending
1 year, 3 months ago

Why inflation will keep policymakers guessing, impact festive spending

India Today  

Offering some relief to consumers, inflation cooled down in August due to easing of food prices, compared to the 15-month high in July. Consumer Price Index -based inflation softened to 6.8 per cent in August, after surging to 7.4 per cent the previous month. Inflation in all commonly constructed non-food CPI categories remained low and unchanged from July: non-food CPI …

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, …

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 …

Modi Government Bats on Front Foot to Combat Rising Inflation in India - News18
1 year, 4 months ago

Modi Government Bats on Front Foot to Combat Rising Inflation in India - News18

News 18  

Inflation is a global concern and quite a big one at that. The figures breached the upper end of the RBI’s inflation band of 2 to 6 per cent for the first time in five months. RBI NOT JUMPING THE GUN YET Around the world, the Central banks of various countries were rather immediate in rolling out interest rate hikes …

DC Edit | Inflation an opportunity in disguise for government?
1 year, 4 months ago

DC Edit | Inflation an opportunity in disguise for government?

Deccan Chronicle  

A day after government data revealed that retail inflation has shot up to a 15-month high of 7.4 per cent, Prime Minister Narendra Modi addressing the nation from the ramparts of the Red Fort promised that his government will take necessary action to tame price rise. According to data released by the Union ministry of statistics and programme implementation for …

CPI inflation data today: Can a fresh spike upset the market?
1 year, 4 months ago

CPI inflation data today: Can a fresh spike upset the market?

Live Mint  

India's consumer price inflation, or retail inflation, for the month of July, is expected to shoot up to a six-month high, thanks to surging prices of vegetables, cereals and pulses. According to a Mint poll of 19 economists, India’s retail inflation might have hit a six-month high of 6.50 per cent in July, sharply up from 4.81 per cent in …

RBI holds rates, vows to keep price stability
1 year, 6 months ago

RBI holds rates, vows to keep price stability

The Hindu  

The Monetary Policy Committee of the Reserve Bank of India, on the basis of an assessment of the current and evolving macroeconomic situation, on June 8 decided to keep the policy repo rate under the liquidity adjustment facility unchanged at 6.50% The standing deposit facility rate remains unchanged at 6.25% and the marginal standing facility rate and the Bank Rate …

Inflation has moderated, but no room for complacency: RBI chief Shaktikanta Das
1 year, 7 months ago

Inflation has moderated, but no room for complacency: RBI chief Shaktikanta Das

India Today  

India's inflation has moderated, but the central bank cannot be complacent towards easing price pressures yet as potential weather-related uncertainties linger, the governor of the Reserve Bank of India said on Wednesday. "The war on inflation is not over; we have to remain alert," Shaktikanta Das said at an event in New Delhi. This month's retail inflation data, scheduled to …

Retail inflation in India comes down by 1% in a month
1 year, 7 months ago

Retail inflation in India comes down by 1% in a month

Op India  

Retail inflation in India eased further in April to 4.7 per cent as against 5.7 per cent the previous month. India’s headline consumer price index-based inflation has gradually declined from its peak of 7.8 per cent in April 2022 to below 6 per cent now, which is below RBI’s upper tolerance band. India’s retail inflation was above RBI’s 6 per …

CPI falls below RBI’s upper tolerance limit again in April
1 year, 7 months ago

CPI falls below RBI’s upper tolerance limit again in April

Live Mint  

India's consumer price index inflation eases sharply to 4.7% in April 2023, coming under the RBI's upper tolerance limit of 6%. Inflation has been above RBI's upper tolerance limit of 6% since January 2022 which also pushed RBI to adopt an aggressive rate hike cycle from May 2022 to February 2023 policies. The latest CPI print for April at 4.7% …

Inflation eases below tolerance band of 6%
1 year, 8 months ago

Inflation eases below tolerance band of 6%

Hindustan Times  

Retail inflation as measured by the Consumer Price Index eased to 5.66%, the lowest in 15 months, on the back of a cooling in food and fuel prices, although the continued spiral in prices of cereals and milk should worry policy makers. Representational image Headline inflation has once again come within the Reserve Bank of India’s tolerance band of 2-6% …

Pause and effect: On the temporary pause to inflation-battling monetary tightening
1 year, 8 months ago

Pause and effect: On the temporary pause to inflation-battling monetary tightening

The Hindu  

The Reserve Bank of India’s Monetary Policy Committee has unanimously and wisely decided to apply a temporary pause to its inflation-battling monetary tightening by keeping the repo rate unchanged. Notwithstanding his assertions that India’s ‘banking and non-banking financial service sectors remain healthy and economic activity remains resilient’, it is the spectre of rising credit costs posing risks to both consumption …

These 5 corps are not allowing inflation in India to ease, says ex-RBI official
1 year, 8 months ago

These 5 corps are not allowing inflation in India to ease, says ex-RBI official

Live Mint  

Inflation in India: India’s biggest conglomerates, which wield immense pricing power in the retail, resources and telecommunication sectors, are contributing to elevated inflation and should be broken up, a former central banker said. The “Big 5” consisting of Reliance Group, Tata Group, Aditya Birla Group, Adani Group and Bharti Telecom have grown at the expense of smaller local firms, said …

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 …

India's Retail Inflation Likely To Have Slowed In February But Remains Beyond RBI Limit: Report
1 year, 9 months ago

India's Retail Inflation Likely To Have Slowed In February But Remains Beyond RBI Limit: Report

News 18  

India’s retail inflation in February is likely to have eased after remaining at 6.52 per cent in January. The retail inflation came under the RBI’s 2-6 per cent band in November with 5.88 per cent rate after remaining beyond it for 10 months consecutively. The March 2-9 Reuters poll of 43 economists showed inflation, as measured by the CPI, likely …

Disconcerting dilation: The Hindu Editorial on January 2023 retail inflation hike
1 year, 10 months ago

Disconcerting dilation: The Hindu Editorial on January 2023 retail inflation hike

The Hindu  

Just five days after Reserve Bank of India Governor Shaktikanta Das asserted that inflation ‘has shown signs of moderation and the worst is behind us’, Monday’s release of Consumer Price Index estimates for January revealed a disconcerting reversal in price gains trend. With a 12.4% weight in the rural consumption basket, cereal prices fuelled January’s overall rural headline inflation at …

Davos 2023: Strong core inflation continues to remain big concern for RBI, says Raghuram Rajan
1 year, 11 months ago

Davos 2023: Strong core inflation continues to remain big concern for RBI, says Raghuram Rajan

India TV News  

Former Reserve Bank of India governor, Raghuram Rajan, has issued a warning that the RBI's ongoing battle against inflation will likely continue to be complicated by consistently high core inflation. From 5.88 percent in November, India's headline retail inflation rate decreased to a one-year low of 5.72 percent in December. On the fringes of the World Economic Forum in Davos, …

Interim relief: The Hindu Editorial on retail inflation’s fall to a 11-month low in 2022
2 years ago

Interim relief: The Hindu Editorial on retail inflation’s fall to a 11-month low in 2022

The Hindu  

After a seemingly interminable 10-month streak of Indian consumers facing runaway price rise of over 6%, retail inflation appeared to have relented a bit in November to 5.88%. Since April 2022, when retail prices surged at a near-eight year high rate of 7.8%, five of the first eight months of 2022-23 year registered 7%-plus inflation. Vegetable prices may remain benign …

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 …

India inflation likely cooled below 7% in October thanks to base effect: poll
2 years, 1 month ago

India inflation likely cooled below 7% in October thanks to base effect: poll

Live Mint  

India’s retail inflation likely cooled to 6.7% in October from September’s five-month high of 7.41% due to a favourable base effect in some key components such as food prices, found a Mint poll of 22 economists. Food inflation jumped nearly 100 basis points in September, and the unseasonal rains that the country witnessed in the previous two months are expected …

Tread carefully: On inflation
2 years, 2 months ago

Tread carefully: On inflation

The Hindu  

India’s latest inflation data present policymakers with a fraught choice: whether to respond to the latest acceleration in retail price gains to a five-month high with more sizeable interest rate increases, or pause the monetary tightening so as to allow fragile growth to gain more traction. As RBI Deputy Governor Michael Patra noted in the central bank’s Monetary Policy Committee …

RBI Bulletin: Battle Against Surging Inflation Will Be Dogged, Prolonged
2 years, 2 months ago

RBI Bulletin: Battle Against Surging Inflation Will Be Dogged, Prolonged

ABP News  

The Reserve Bank of India in its article on Monday said that the battle against inflation will be dogged and prolonged, given the long and variable lags with which monetary policy operates. Retail inflation spiked to 7.41 per cent in September, remaining above central bank’s upper tolerance level of 6 per cent for the ninth month in a row. With …

Boxed in: The Hindu Editorial on need for inflation control as top policy priority
2 years, 2 months ago

Boxed in: The Hindu Editorial on need for inflation control as top policy priority

The Hindu  

The Reserve Bank of India’s rate decision on Friday was ultimately inevitable. RBI Governor Shaktikanta Das cited the ‘aggressive monetary policy actions and even more aggressive communication from advanced economy central banks’ as a third shock -- following the pandemic and Russia’s invasion of Ukraine — which he said had thrust the ‘global economy into the eye of a new …

Measures to cool food inflation will deliver in coming weeks, says Finance Ministry
2 years, 3 months ago

Measures to cool food inflation will deliver in coming weeks, says Finance Ministry

The Hindu  

The Finance Ministry late Monday termed the increase in retail inflation from 6.71% in July to 7% in August as ‘moderate’, and attributed it to an adverse base effect and an increase in food and fuel prices, which it called “the transient components” of Consumer Price inflation. “Despite erratic monsoons and negative seasonality in vegetable prices, food inflation in July …

Inflation rises to 7 pc in August; RBI may hike interest rate again later this month
2 years, 3 months ago

Inflation rises to 7 pc in August; RBI may hike interest rate again later this month

Deccan Chronicle  

NEW DELHI: After declining for three months, retail inflation rose to 7 per cent in August due to higher food prices which may prompt the Reserve Bank of India to go for another rate hike later this month to tame price rise. The Consumer Price Index based inflation, which is factored in by RBI while deciding the monetary policy, has …

Nirmala Sitharaman links inflation, State fuel taxes
2 years, 3 months ago

Nirmala Sitharaman links inflation, State fuel taxes

The Hindu  

Emphasising that it was unfair to blame the Centre for some States’ higher price levels, Finance Minister Nirmala Sitharaman said on Thursday that States that have not cut fuel taxes are recording inflation rates higher than the national average and mooted a Centre-State co-operation mechanism to handle price rise matters. But the fact remains, and I find, coincidentally, and I …

How ideology muddled inflation control in India
2 years, 3 months ago

How ideology muddled inflation control in India

The Hindu  

The Governor of the Reserve Bank of India reportedly stated that the inflation rate would be brought to its target level of 4% within 24 months. Though the characteristics of India’s economy vary substantially when compared to those of the industrialised West, their governments follow the same approach to inflation control, termed ‘inflation targeting’ and implemented by their central banks. …

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