A flawed calculation of inflation
3 years, 3 months ago

A flawed calculation of inflation

The Hindu  

Inflation for the last four months has been worryingly high — wholesale price index has been above 10% and consumer price index crossed the 6% mark in June, which was above the Reserve Bank of India ’s tolerance band. Anyway, a single number for inflation is an aggregate across different commodities and services — the price rise differs for different items of consumption. Thus, inflation in times of low demand and reduced incomes leads to a vicious cycle of slowing the economy and a growing crisis in the lives of the poor and unemployed, most of whom belong to the unorganised sector and some to the organised sector. Since energy is used for all production, prices of all goods and services tend to rise and push up the rate of inflation. In brief, the current official inflation rate does not correctly measure price rise since the lockdown administered a shock to the economy.

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History of this topic

Inflation heated up last month as consumer prices rose 2.7%, underscoring the slog ahead
2 weeks ago

Inflation heated up last month as consumer prices rose 2.7%, underscoring the slog ahead

CNN  

CNN — Inflation heated back up again in November, but it likely wasn’t bad enough to keep the Federal Reserve from cutting rates next week. “We have some PTSD around egg prices from the pandemic and certainly lingering avian flu outbreaks; but those prices being up almost 40% year over year certainly is another thing people will look at in …

A Third of UK Prices Basket Is in Deflation, Analysis Finds
1 month, 2 weeks ago

A Third of UK Prices Basket Is in Deflation, Analysis Finds

Live Mint  

A third of Britain’s official “shopping basket” has slipped into deflation, providing another green light for the Bank of England to cut interest rates. The analysis of the UK inflation basket suggests that the cooling in price pressures is at least for now becoming more widespread, welcome news for Prime Minister Keir Starmer’s new Labour government. “Firms are more reluctant …

New base year for retail inflation likely
3 months, 4 weeks ago

New base year for retail inflation likely

Hindustan Times  

A Union government-appointed panel formed to update the Consumer Price Index, which tracks changes in retail prices, is likely to revise the base year used to measure inflation from 2012 to 2024 and lower the weight assigned to food items to keep pace with changing consumption patterns, two officials aware of the matter said. If the change in the CPI …

What rising inflation means for you and what happens next
4 months, 1 week ago

What rising inflation means for you and what happens next

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. That means overall services prices still rose versus July last …

How inflation has hit your shopping basket
10 months, 1 week ago

How inflation has hit your shopping basket

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. A slowing of inflation among many everyday food and drink items, including cheese and …

Which everyday items have seen a rise in inflation – and where has it eased?
11 months, 1 week ago

Which everyday items have seen a rise in inflation – and where has it eased?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Average prices for cigarettes increased by 15.7% in the …

A surge foretold: On inflation data
1 year, 4 months ago

A surge foretold: On inflation data

The Hindu  

The latest NSO data, showing retail inflation accelerating to a 15-month high, comes less than a week after the Reserve Bank of India left interest rates unchanged even as it warned of “a substantial increase in headline inflation” in the near term. The primary driver of this surge was the food price component, with the Consumer Food Price Index-based inflation …

US price and wage increases slow further in the latest signs of cooling inflation
1 year, 4 months ago

US price and wage increases slow further in the latest signs of cooling inflation

Associated Press  

WASHINGTON — Signs that inflation pressures in the United States are steadily easing emerged Friday in reports that consumer prices rose in June at their slowest pace in more than two years and that wage growth cooled last quarter. Together, the figures provided the latest signs that the Federal Reserve’s drive to tame inflation may succeed without triggering a recession, …

How the CPI basket conceals the inflation picture
1 year, 5 months ago

How the CPI basket conceals the inflation picture

The Hindu  

Imagine entering an antique store and coming across an old wooden trunk. Although these have a minimal weight in the overall CPI calculation, we are clinging onto the past, tracking items that no longer hold the same relevance in our consumption patterns. First, as nations undergo economic advancement and societal progress, a typical trajectory involves diversifying food intake and embracing …

Inflation fell in January, but more slowly than economists hoped
1 year, 10 months ago

Inflation fell in January, but more slowly than economists hoped

CBS News  

Consumer inflation moderated in January, yet remained higher than many economists had expected, driven by rising prices for housing, gasoline and natural gas. Core inflation, which excludes volatile food and energy costs, increased at an annual rate of 5.6%, also higher than economists had predicted. "While this is the smallest year-over-year price increase since October 2021, today's report suggests that …

Retail inflation rises to 3-month high of 6.52% in January
1 year, 10 months ago

Retail inflation rises to 3-month high of 6.52% in January

The Hindu  

India’s retail inflation shot back up to 6.52% in January after a two-month streak below the 6% mark, with consumer food prices hardening again to 5.94% from 4.2% in December 2022 amid a broad-based pick-up in price trends across goods and services. “The contribution of food inflation to overall inflation rose to 44% in January from 37% in December,” noted …

Forget core CPI, market pros are searching for supercore inflation
1 year, 11 months ago

Forget core CPI, market pros are searching for supercore inflation

Live Mint  

Prices of services are rising quickly. In recent months, Federal Reserve Chairman Jerome Powell himself has emphasized the importance of core services excluding housing, though he has focused on that category as it is measured by the Fed’s preferred inflation gauge, the personal-consumption expenditures price index. Minutes from the Fed’s December meeting, released last week, again emphasized the importance of …

Revved-up services sector can drive inflation out of control
1 year, 11 months ago

Revved-up services sector can drive inflation out of control

Live Mint  

While India’s headline inflation is finally showing signs of easing, the country’s services sector is seeing a demand rebound- and higher prices to match—after two years of pandemic-induced slump. Rates go up on small savings schemes Economists warned that services inflation would remain elevated and stressed that the central bank should focus on the services segment in addition to the …

Inflation is likely to persist as a big economic problem in 2023
2 years ago

Inflation is likely to persist as a big economic problem in 2023

Live Mint  

Retail inflation as measured by the consumer price index came in at 5.9% for November. First, November’s fall in inflation was primarily on account of a fall in prices of seasonal vegetables as well as oil and fats. Median inflation expectations one-year head have been higher than 10% since May 2020. The answer is not an easy one, given that …

Make no mistake, the government shares in the responsibility for sky-high inflation
2 years, 1 month ago

Make no mistake, the government shares in the responsibility for sky-high inflation

The Independent  

Rising inflation is still haunting Britain. The latest update from the Office for National Statistics showed consumer price inflation shot up to 11.1 per cent for the 12 months to October. The cost of food and non-alcoholic beverages rose by 16.2 per cent in the year to October, the highest rise since 1977. Well, “core” inflation, excluding those volatile food …

DC EDIT | First sign of price relief; up to govt to insulate economy
2 years, 1 month ago

DC EDIT | First sign of price relief; up to govt to insulate economy

Deccan Chronicle  

After three months of spike, retail inflation or the Consumer Price Index softened to 6.77 per cent in October. The price rise among cereals, in particular, which has nearly 10 per cent weightage in the retail inflation, remained elevated at 12 per cent, because of irregular monsoon distribution and unseasonal rain disrupting supply. Inflation in energy products and clothes, which …

Worsening inflation will pressure Fed to keep raising rates
2 years, 2 months ago

Worsening inflation will pressure Fed to keep raising rates

Associated Press  

WASHINGTON — Inflation in the United States accelerated in September, with the cost of housing and other necessities intensifying pressure on households, wiping out pay gains and ensuring that the Federal Reserve will keep raising interest rates aggressively. And on a month-to-month basis, such “core” prices soared 0.6% for a second straight time, defying expectations for a slowdown and signaling …

US wholesale inflation declines in August to still-high 8.7%
2 years, 3 months ago

US wholesale inflation declines in August to still-high 8.7%

Associated Press  

WASHINGTON — Inflation at the wholesale level jumped 8.7% in August from a year earlier, a slowdown from July yet still a painfully high level that suggests prices will keep spiking for months to come. Wednesday’s report from the Labor Department also showed that on a month-to-month basis, the producer price index — which measures inflation before it reaches consumers …

Driven by consumers, US inflation grows more persistent
2 years, 3 months ago

Driven by consumers, US inflation grows more persistent

Associated Press  

WASHINGTON — U.S. inflation is showing signs of entering a more stubborn phase that will likely require drastic action by the Federal Reserve, a shift that has panicked financial markets and heightens the risks of a recession. Instead, inflation has now sp On Tuesday, the government said inflation ticked up 0.1% from July to August and 8.3% from a year …

US inflation still stubbornly high despite August slowdown
2 years, 3 months ago

US inflation still stubbornly high despite August slowdown

Associated Press  

WASHINGTON — Lower gas costs slowed U.S. inflation for a second straight month in August, but most other prices across the economy kept rising — evidence that inflation remains a heavy burden for American households. Fueled by high rents, medical care and new cars, core prices leaped 6.3% for the year ending in August and 0.6% from July to August, …

Why we need less food in our inflation basket
2 years, 3 months ago

Why we need less food in our inflation basket

Live Mint  

After declining for three consecutive months, retail inflation rose in August to 7% from 6.71% in July. While the rise in headline inflation is small, inflation in food and beverage was a much higher 7.57%. In contrast, core inflation inched up only 6 basis points to 6.01%, which may not offer much relief, as the Reserve Bank of India’s rate-setting …

Retail Inflation Inches to 7 Percent in August After Falling for 3 Months
2 years, 3 months ago

Retail Inflation Inches to 7 Percent in August After Falling for 3 Months

The Quint  

National Statistics office released data showing that the consumer price index-based inflation was higher than a Reuters survey of economists in August, rising to 7 percent, in comparison to the 6.9 percent forecast and above the 6.71 percent in July. Food inflation, which constitutes nearly half of the Consumer Price Index basket, rose with the increase in prices of essential …

What is inflation? Here’s why prices go up, and who’s to blame
2 years, 4 months ago

What is inflation? Here’s why prices go up, and who’s to blame

CNN  

New York CNN Business — Confused about inflation? In the United States, for the past 40 years or so, we’ve been living in an ideal low-and-slow level of inflation that comes with a well-oiled consumer-driven economy, with prices going up around 2% a year, if that. Economists use two main gauges to track inflation in the United States, and while …

How high is inflation and what causes it? What to know
2 years, 4 months ago

How high is inflation and what causes it? What to know

Live Mint  

U.S. inflation eased slightly to 8.5% in July, but remained close to a four-decade high despite cooling energy prices. Higher prices in one sector also don’t necessarily lead to general inflation across the economy. The readings, however, show that price increases are widespread and well above policy makers’ targets for annual inflation, which hover around 2% on average. Entrenched inflation …

Shoppers face £380 jump in grocery bills this year as inflation surges
2 years, 6 months ago

Shoppers face £380 jump in grocery bills this year as inflation surges

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Retail data company Kantar said …

Retail inflation jumps to near 8 year-high in April; muted factory output growth
2 years, 7 months ago

Retail inflation jumps to near 8 year-high in April; muted factory output growth

Live Mint  

Retail inflation measured by the consumer price index shot up sharply to 7.79% in April while industrial output showed muted growth in March at 1.9% over a high base, highlighting the economic challenges facing policymakers. CPI jumped to 7.79% in April compared to 6.95% in March while food inflation jumped to 8.38% from 7.68% in March, data released by the …

Retail Inflation at 8 year high
2 years, 7 months ago

Retail Inflation at 8 year high

The Hindu  

May 12, 2022 07:49 pm | Updated May 13, 2022 12:31 pm IST - NEW DELHI Inflation faced by Indian consumers raced to an almost eight-year high of 7.8% in April, from 6.95% in March, with rural inflation accelerating to 8.4%, and urban shoppers experiencing an almost 1 percentage point month-on-month quickening at 7.1%, data released by the National Statistical …

US sees highest increase in inflation in 40 years fueled by 7.5% surge in consumer prices
2 years, 10 months ago

US sees highest increase in inflation in 40 years fueled by 7.5% surge in consumer prices

India Today  

U.S. consumer prices rose solidly in January, leading to the biggest annual increase in inflation in 40 years, which could fuel financial markets speculation for a 50 basis points interest rate hike from the Federal Reserve next month. STRONG UNDERLYING INFLATION Excluding the volatile food and energy components, the CPI increased 0.6% last month after rising 0.6% in December. "The …

Rising inflation tightens squeeze on consumers
2 years, 11 months ago

Rising inflation tightens squeeze on consumers

Associated Press  

Retail sales took an unexpected dip in December in what could be a signal that persistently rising inflation is prompting a pullback in consumer spending. Persistently rising inflation has made goods more expensive all around, therefore cutting purchasing power by making people stretch their dollars more for the same items. Retail sales haven’t fallen by that much since early in …

Rising prices: Key inflation measure CPI hits a 39-year high in December 2021
2 years, 11 months ago

Rising prices: Key inflation measure CPI hits a 39-year high in December 2021

CNN  

New York CNN Business — Pandemic price hikes didn’t let up in the last month of 2021: A key inflation gauge hit a fresh a 39-year high. The US consumer price inflation index rose 7% over the past year before seasonal adjustments, the steepest climb in prices since June 1982, the Bureau of Labor Statistics reported Wednesday. Stripping out food …

Column: There’s a right way and a wrong way to think about inflation. Here’s a right way
3 years ago

Column: There’s a right way and a wrong way to think about inflation. Here’s a right way

LA Times  

President Biden takes part in the annual pardoning of the Thanksgiving turkey. — Treasury Secretary Janet Yellen The result, investor and economic commentator Zachary Karabell writes, is that “any hint of inflation triggers the equivalent of PTSD in the ranks of central banks, economists, policymakers and millions of middle-class wage earners.” Yet that was not always so — indeed, it’s …

Inflation rockets to a 13-year high
3 years, 5 months ago

Inflation rockets to a 13-year high

CNN  

New York CNN Business — Prices keep rising in the United States, putting a squeeze on American consumers’ wallets. Over the last 12 months, prices were up 5.4%, the biggest jump in annual inflation in nearly 13 years. Used car prices were up 10.5% in June — the largest one-month jump in records that go back nearly 70 years, and …

CPI inflation inches up in Oct
4 years, 1 month ago

CPI inflation inches up in Oct

Live Mint  

Consumer Price Index -based inflation shot up to a worrying 7.61% in October, well above the central bank’s comfort zone, fuelled by a spike in food prices, official data showed on Thursday. Food price inflation quickened to 11.07% in October from 10.68% the month before as vegetables, fish, egg, meat and oils witnessed sustained price rise, showed data issued by …

Rising inflation is a supply-induced problem this year
4 years, 2 months ago

Rising inflation is a supply-induced problem this year

Live Mint  

Consumer price inflation for September was at 7.34%—the fifth consecutive CPI print above the MPC’s target of 2-6%. A surge in food prices are the primary reason for the sharp increase in food inflation, which has demonstrated an upward trajectory of 7.87% in June, 9.27% in July, 9.05% in August and finally 10.68% in September. The high share of food …

Retail inflation to come down with easing of lockdowns: CEA
4 years, 3 months ago

Retail inflation to come down with easing of lockdowns: CEA

The Hindu  

Attributing the rise in inflation to supply-side frictions, Chief Economic Adviser K V Subramanian has exuded confidence that retail inflation will come down in the days ahead with the easing of lockdowns. According to the government data, retail inflation rose to 6.93% in July, mainly driven by rising prices of food items like vegetables, pulses, meat and fish. “Overall, the …

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