Core inflation flourishes in Rural India amid growing agrarian crisis
6 years ago

Core inflation flourishes in Rural India amid growing agrarian crisis

Live Mint  

When income is stagnant, a logical outcome could be curtailing expenditure. But rural India seems to be fine with paying higher prices for services that range from education to matinee shows. The chart above shows inflation for services and a few discretionary items has been higher in rural areas compared to urban centres. It is also clear that farm income has stagnated and farmers now face a potential fall in their income—a trend which is visible in the sharp disinflation in food prices in recent months. Shubhada Rao, chief economist at Yes Bank, says that perhaps the share of disposable income of rural families for spending on these items has remained intact, or may have even increased.

India Rural Rural India Disposable Income  discretionary  crisis  services  prices  disposable  income  rural  inflation  items  core  agrarian  higher  amid  farmers  india  flourishes  growing

History of this topic

Retail inflation eases to four-month low of 5.22% in December 2024
2 days ago

Retail inflation eases to four-month low of 5.22% in December 2024

The Hindu  

India’s retail inflation eased a bit to a four-month low of 5.22% in December 2024 from 5.5% in November 2024, with food inflation cooling marginally from 9.04% in November to 8.4% last month, the National Statistics Office said on Monday. With December’s inflation print, India’s Consumer Price Inflation has averaged 5.63% in the third quarter of 2024-25, just a little …

India’s Inflation Story: Here are five key things you should know
1 month ago

India’s Inflation Story: Here are five key things you should know

Live Mint  

India's inflation is at its 14-month peak, according to October 2024 data from the Ministry of Statistics and Programme Implementation. According to data released by the Ministry of Statistics and Programme Implementation on November 12, India's consumer price index inflation rose to 6.2 per cent in October 2024, compared to 5.49 per cent in September 2024. Finance Ministry's Inflation Target: …

Mint Explainer: How sustainable is India's rural consumption boom?
1 month, 3 weeks ago

Mint Explainer: How sustainable is India's rural consumption boom?

Live Mint  

India’s consumer goods giants found an unexpected saviour this past quarter: rural demand. The periodic labour force survey data show a jump in women’s participation in economic activities in rural India since the Covid-19 pandemic. The easing of labour law provisions by some states to allow women to work night shifts also contributed to raising their participation in economic activities …

Mint Explainer: How sustainable is India's rural consumption boom?
1 month, 3 weeks ago

Mint Explainer: How sustainable is India's rural consumption boom?

Live Mint  

India’s consumer goods giants found an unexpected saviour this past quarter: rural demand. The periodic labour force survey data show a jump in women’s participation in economic activities in rural India since the Covid-19 pandemic. The easing of labour law provisions by some states to allow women to work night shifts also contributed to raising their participation in economic activities …

Nirmala Sitharaman acknowledges netizen’s request for relief to middle class. Check her response here
1 month, 4 weeks ago

Nirmala Sitharaman acknowledges netizen’s request for relief to middle class. Check her response here

Live Mint  

Indian Finance Minister Nirmala Sitharaman, on November 17, responded to a netizen requesting some relief for the middle class amid rising inflation and prices in the country. I understand the immense challenges involved, but it’s just a heartfelt request.” Sitharaman responded positively to the post, thanking Sharma for acknowledging the challenges involved and stating that the central government is a …

India’s Industrial Output Grows 3.1 Percent in September Amid Rising Inflation
2 months ago

India’s Industrial Output Grows 3.1 Percent in September Amid Rising Inflation

Deccan Chronicle  

NEW DELHI: India’s industrial production witnessed a significant expansion by 3.1 per cent in September from a negative territory in August 2024 at 0.1 per cent, mainly due to improvement in the manufacturing sector. While headline retail inflation rose to 14-month high of 6.21 per cent in October from 5.49 per cent in the preceding month mainly due to higher …

India’s retail inflation surges to 6.2% in October
2 months ago

India’s retail inflation surges to 6.2% in October

The Hindu  

A 10.9% spike in food prices lifted India’s retail inflation to a 14-month high of 6.2% in October, from 5.5% in September, with prices of vegetables and edible oils escalating at a sharp pace not seen in recent years. October’s price rise pace marked a breach of the Reserve Bank of India’s upper tolerance limit for inflation, with rural India …

India’s 14-month high retail inflation fades hope of December rate cut
Trending News
2 months 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, …

'Double engine' of private investment, mass consumption derailed under Modi government: Congress
2 months ago

'Double engine' of private investment, mass consumption derailed under Modi government: Congress

New Indian Express  

Congress general secretary in-charge communications Jairam Ramesh urged the government to accept what the Congress has been proposing - raising MGNREGA wages to a minimum of Rs.400 per day, guaranteeing MSP and a loan waiver for farmers, and a monthly income support scheme for women - to kickstart income growth in rural India. Last week, several CEOs from India Inc …

India's Economy Shows Satisfactory Performance in First Half of FY25, But Risks from Geopolitical Conflicts and Global Factors
2 months, 2 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.

India's WPI inflation drops to four-month low of 1.31 per cent in August on lower prices
3 months, 4 weeks ago

India's WPI inflation drops to four-month low of 1.31 per cent in August on lower prices

New Indian Express  

NEW DELHI: Wholesale inflation fell for the second consecutive month to 1.31 per cent in August due to cheaper vegetables, food and fuel, government data released on Tuesday showed. The fuel and power category witnessed deflation of 0.67 per cent in August against inflation of 1.72 per cent in July. Data released last week showed retail inflation was at 3.65 …

MGNREGS demand not a real indicator of rural distress: Economic Survey
5 months, 3 weeks ago

MGNREGS demand not a real indicator of rural distress: Economic Survey

The Hindu  

Laying the groundwork for revisiting the Mahatma Gandhi Rural Employment Guarantee Scheme as a poverty alleviation tool, Chief Economic Adviser V. Anantha Nageswaran on July 22 noted in the Economic Survey that demand under the scheme was not a “real indicator” of rural distress. According to the survey, while Tamil Nadu has less than 1% of the poor population in …

Economic Survey on retail inflation: ‘Government and RBI’s intervention helped'
5 months, 3 weeks ago

Economic Survey on retail inflation: ‘Government and RBI’s intervention helped'

Hindustan Times  

The Economic Survey 2024, tabled by Union Finance Minister Nirmala Sitharaman in the Parliament on Monday stated that despite the pandemic and geopolitical tensions, the Central Government's timely policy interventions and the Reserve Bank of India's price stability measures helped maintain retail inflation at 5.4 per cent. However, in FY24, the central government's timely policy interventions and the Reserve Bank …

Retail inflation at 4-month high, rises to 5.08% in June
6 months ago

Retail inflation at 4-month high, rises to 5.08% in June

India Today  

Retail inflation surged to 5.08% in June, rising to a 4-month high on an annual basis from 4.80% in May last month, as per government data released on Friday, July 12, 2024. "Year-on-year inflation rate based on All India Consumer Price Index number is 5.08% for the month of June, 2024. CPI data for June The inflation rate has stayed …

India inflation seen up in June due to soaring vegetable prices: Reuters poll
6 months ago

India inflation seen up in June due to soaring vegetable prices: Reuters poll

Hindustan Times  

By Vivek Mishra India inflation seen up in June due to soaring vegetable prices: Reuters poll BENGALURU - India consumer price inflation probably edged up in June, snapping five months of declines, largely because of a jump in vegetable prices caused by the damage to crops wrought by extreme weather, according to a Reuters poll of economists. The July 5-9 …

Rural-Urban Consumption Dynamics in India
7 months ago

Rural-Urban Consumption Dynamics in India

Deccan Chronicle  

Over the past decade, India has witnessed a notable rise in consumption spending in both rural and urban areas, indicating a shift in economic dynamics and lifestyle choices. Furthermore, the changing food habits of the Indian populace have contributed to the evolving consumption patterns observed in both rural and urban areas. In conclusion, the equivalent rise in consumption spending in …

Retail inflation eases to 12-month low
7 months ago

Retail inflation eases to 12-month low

Deccan Chronicle  

New Delhi: With the decline of food prices and kitchen items, India’s headline retail inflation eased to a 12-month low of 4.75 per cent in May on an annual basis from 4.83 per cent in April, while the industrial output slowed to a three-month low of 5 per cent in April as against 5.4 per cent in March this year, …

Inequality, unemployment, inflation in India are at all time high, says Parakala Prabhakar
8 months, 4 weeks ago

Inequality, unemployment, inflation in India are at all time high, says Parakala Prabhakar

The Hindu  

Inequality, unemployment among youth, inflation of various commodities and household debt are at an all-time high in the country, said political economist Parakala Prabhakar, in Chennai on April 16. Speaking at a national colloquium on the present political situation titled “The values at stake,” organised by Chennai Thinker’s Forum, Mr. Prabhakar, who is also the author of the book The …

Inflation to ease, FY24 GDP growth seen at 6.6%: Kotak Bank chief economist Upasna Bhardwaj
9 months, 3 weeks ago

Inflation to ease, FY24 GDP growth seen at 6.6%: Kotak Bank chief economist Upasna Bhardwaj

Live Mint  

India’s inflation is expected to moderate, yet concerns over food prices persist due to unpredictable monsoons, Upasna Bhardwaj, chief economist at Kotak Mahindra Bank, told Mint. However, Bhardwaj cautioned that while certain sectors like power, hospitality, and electronics would likely propel growth, reviving consumer demand in rural areas could pose challenges. Bhardwaj believes key priorities for India, as it aims …

Inflation still at 5.1%, but food prices rise
10 months 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 …

Consumption trends and monetary policy
10 months, 1 week ago

Consumption trends and monetary policy

Hindustan Times  

Consumption is the mainstay of India’s aggregate demand, constituting around 60% of its Gross Domestic Product. Average monthly per capita consumption expenditure was ₹3,773 in rural India and ₹6,459 in urban India in 2022-23 as against ₹1,431 in rural India and ₹2,629 in urban India in 2011-12. At a broad category level, non-food expenditure has grown at a much higher …

Lower inflation, increase in per capita income, revenue: Delhi Economic Survey
10 months, 2 weeks ago

Lower inflation, increase in per capita income, revenue: Delhi Economic Survey

Hindustan Times  

Finance minister Atishi on Friday cited a 22% increase in per capita income, the fastest Gross State Domestic Product growth, an 18% rise in tax collection, lower inflation and unemployment rates and said Delhi’s economy has increased at a record pace as she presented this year’s Economic Survey in the assembly. “GSDP of Delhi at current prices during 2023-24 is …

What causes inflation in India: Demand or supply issues? | Data
1 year ago

What causes inflation in India: Demand or supply issues? | Data

The Hindu  

December 22, 2023 05:30 pm | Updated 05:37 pm IST Typically, inflation in India is primarily influenced by factors related to supply but there are times when demand factors also play a significant role, according to an article published by the Reserve Bank of India as a part of their December bulletin. Using the Centre for Monitoring Indian Economy’s consumer …

Retail inflation for farm workers rises to 7.37% in November, 7.13% for rural labourers
1 year ago

Retail inflation for farm workers rises to 7.37% in November, 7.13% for rural labourers

The Hindu  

Retail inflation for farm workers rose to 7.37% and that for rural labourers climbed to 7.13% in November, mainly due to higher prices of certain food items. All-India Consumer Price Index for agricultural labourers in November this year increased 12 points to 1,253, while the index for rural workers advanced 11 points to 1,262. Major contribution towards the rise in …

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 …

ECONOMIC PERSPECTIVES | Why India is unable to curb inflation
1 year, 4 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 …

Rising food prices may undo recent respite from inflation
1 year, 5 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 …

Factory item prices must cool for lasting inflation relief
1 year, 5 months ago

Factory item prices must cool for lasting inflation relief

Live Mint  

India’s retail inflation in June was 4.8%, as per a recent data release. Retail inflation is the year-on-year change in the consumer price index, which is a weighted average price level for food, fuel, manufacturing and service items. There is one lesson to be drawn from India’s inflation-targeting experience and especially high inflation post the covid pandemic: the prices of …

Retail inflation for farm, rural workers rises marginally in June
1 year, 5 months ago

Retail inflation for farm, rural workers rises marginally in June

India TV News  

Retail inflation for farm workers and rural labourers inched up marginally to 6.31 per cent and 6.16 per cent, respectively in June as compared to 5.99 per cent and 5.84 per cent in May this year. "Point-to-point rate of inflation based on CPI-AL and CPI-RL stood at 6.31 per cent and 6.16 per cent in June 2023 compared to 5.99 …

Retail inflation in India comes down by 1% in a month
1 year, 8 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 …

India's retail inflation declines to 18-month low of 4.7% in March
1 year, 8 months ago

India's retail inflation declines to 18-month low of 4.7% in March

Firstpost  

New Delhi: Retail inflation fell to an 18-month low of 4.7 per cent in April mainly due to cooling food prices, government data showed on Friday. It was for the second month in a row that Consumer Price Index based inflation remained within the RBI’s comfort zone of below 6 per cent. The retail inflation based on Consumer Price Index …

Retail inflation in April drops to 18-month low of 4.7%
1 year, 8 months ago

Retail inflation in April drops to 18-month low of 4.7%

India Today  

India’s retail inflation in April continued to be within the Reserve Bank of India's comfort zone for the second consecutive month, mainly on account of falling moderating food prices. The consumer price index-based inflation eased to an 18-month low of 4.7 per cent, as per data released by the National Statistics Office. Retail inflation stood at 5.66 per cent in …

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 …

Retail inflation eases to 5.66% in March, back within RBI's comfort zone after 2 months
1 year, 9 months ago

Retail inflation eases to 5.66% in March, back within RBI's comfort zone after 2 months

India Today  

India’s retail inflation in March is back within the Reserve Bank of India’s comfort zone in March after staying above 6 per cent for the first two months of 2023. It may be noted that retail inflation stood at 6.44 per cent in February 2023 and 6.52 per cent in January, after falling to a 12-month low of 5.72 per …

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 …

Retail inflation marginally dips to 6.44 pc in February
1 year, 10 months ago

Retail inflation marginally dips to 6.44 pc in February

Deccan Chronicle  

New Delhi: Staying above the Reserve Bank of India’s upper tolerance level of six per cent for the second straight month, India’s retail inflation marginally dipped to 6.44 per cent in February from January’s three-month high of 6.52 per cent. Inflation is still high on a year-on-year basis where it was seen at 6.07 per cent in February 2022, according …

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 …

India\'s retail inflation again breaches RBI\'s comfort zone
1 year, 11 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 …

Elevated inflation leads to negative growth in real rural wages: Economic Survey
1 year, 11 months ago

Elevated inflation leads to negative growth in real rural wages: Economic Survey

The Hindu  

There has been nominal increase in rural wages but when calculated against the rate of inflation, the real rural wages have had a negative growth, the Economic Survey that was tabled in Parliament on Tuesday revealed. “However, growth in real rural wages has been negative due to elevated inflation. Positive signs of recovery There are though other positive signs of …

Budget 2023: ’Rural income growth, women empowerment should be priority’
1 year, 11 months ago

Budget 2023: ’Rural income growth, women empowerment should be priority’

Live Mint  

With global geopolitical uncertainties and the slowing growth of the world economy, it is crucial to address job creation challenges and boost consumer demand in the country. The upcoming budget should be focused on rural income growth and our target should be at least 100% growth in every household income in near future. Through women's self-help groups, millions of jobs …

Vegetable prices help cool inflation in December 2022
2 years ago

Vegetable prices help cool inflation in December 2022

The Hindu  

A steep 15.1% fall in vegetable prices in December 2022 drove down India’s retail inflation to a 12-month low of 5.72% — keeping it below the central bank’s 6% tolerance threshold for the second straight month after a ten-month streak above it. “Excluding vegetables, retail inflation actually rose to 7.2% in December from 7% in November — led by rising …

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 …

The week in 5 charts | India’s retail inflation rate eases down to 5.88%, Himachal’s performance in social indicators, and more
2 years ago

The week in 5 charts | India’s retail inflation rate eases down to 5.88%, Himachal’s performance in social indicators, and more

The Hindu  

India’s annual retail inflation rate eases to 5.88% in November India’s annual retail inflation eased below the Reserve Bank of India’s upper tolerance level for the first time this year in November, easing pressure on policymakers. The Finance Ministry termed this a ‘drastic decline’ mainly attributable to a sharp decrease in food price inflation brought about by government measures. Watch …

Centre working to slow inflation, FM Nirmala Sitharaman says
2 years, 1 month ago

Centre working to slow inflation, FM Nirmala Sitharaman says

Live Mint  

The government is working to slow inflation further, and is closely monitoring the prices of essential commodities, finance minister Nirmala Sitharaman said, adding that the country is protected from the risk of stagflation due to its relatively slow inflation rates and fast growth. The government will further bring down inflation and is constantly watching the price situation of essential commodities,” …

The rise of rural manufacturing
2 years, 1 month ago

The rise of rural manufacturing

The Hindu  

There is growing evidence to suggest that the most conspicuous trend in the manufacturing sector in India has been a shift of manufacturing activity and employment from bigger cities to smaller towns and rural areas. This study investigated the urbanisation of the Indian manufacturing sector by “combining enterprise data from formal and informal sectors and found that manufacturing plants in …

Retail inflation falls below 6% mark for first time in 2022
2 years, 1 month 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 …

Inflation in India less as compared to US, UK: Rajnath Singh
2 years, 2 months ago

Inflation in India less as compared to US, UK: Rajnath Singh

Live Mint  

Defence Minister Rajnath Singh on Monday said inflation in India is less as compared to the US, the UK and other countries. Meanwhile, the finance ministry on Monday said the "drastic decline" in October retail inflation is mainly due to a dip in food price inflation and the impact of government measures to check price rise would be felt more …

Retail inflation cools to 6.77% in October from 7.41% in September
2 years, 2 months ago

Retail inflation cools to 6.77% in October from 7.41% in September

The Hindu  

India’s retail inflation cooled to 6.77% in October from 7.41% in September, slipping below the 7% mark for the first time in three months and only the second time since April’s eight-year high mark of 7.8%. Rural consumers continued to face 7% inflation in October, slightly lower than the 7.6% in September, while urban India consumers’ price rise eased to …

Food prices to stay sticky, may keep inflation around 7% in Q3 too
2 years, 3 months ago

Food prices to stay sticky, may keep inflation around 7% in Q3 too

The Hindu  

The poor are facing a higher inflation burden due to the surge in food prices, especially for items like cereals and vegetables, which are unlikely to cool off soon owing to unseasonal rainfall and lower Kharif crop sowing, according to economists. “Essential items, such as food and fuel, occupy a greater share in the consumption basket of lower-income classes… Across …

Inflation accelerates to 7.41% in September 2022, highest since April
2 years, 3 months ago

Inflation accelerates to 7.41% in September 2022, highest since April

The Hindu  

India’s retail inflation accelerated to 7.41% in September from 7% in August, with food price inflation surging sharply from 7.62% in August to 8.6% in September, the National Statistical Office said on Wednesday. At 7.41%, September’s retail inflation level is the highest since April this year, when price rise had hit a nearly eight-year high of 7.79%. The country’s rural …

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