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 consumers. The RBI August monthly bulletin highlighted that global economic resurgence has begun to decelerate post a robust initial quarter, while India's economic momentum has gathered steam in second quarter of 2023-24. Notably, the scheme provisions credit support up to Rs 1 lakh and Rs 2 lakhs, coupled with a concessional interest rate of five per cent.

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History of this topic

DC Edit | FM, new RBI chief signal cut
1 week, 4 days ago

DC Edit | FM, new RBI chief signal cut

Deccan Chronicle  

Finance minister Nirmala Sitharaman’s statement that inflation is a major challenge faced by countries around the world and that no country can solve it alone appears to have set an agenda for new RBI governor Sanjay Malhotra, who took charge a few hours before she made this statement. During the tenure of Shaktikanta Das, the RBI remained squarely focused on …

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 — …

Unchecked 'sticker shock' from inflation can hurt manufacturing and economy, RBI says
1 month ago

Unchecked 'sticker shock' from inflation can hurt manufacturing and economy, RBI says

Hindustan Times  

The Reserve Bank of India said if inflation is allowed to run unchecked, it can undermine the prospects of India's economy, especially for industry and exports. The Reserve Bank of India seal is pictured on a gate outside the RBI headquarters in Mumbai, India, February 2, 2016 This comes after the headline consumer price index inflation rose above the upper …

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 …

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 …

‘Abandoning RBI’s inflation target regime could be risky, counterproductive’
4 months ago

‘Abandoning RBI’s inflation target regime could be risky, counterproductive’

The Hindu  

The Reserve Bank of India's inflation targeting regime has worked well and need not be abandoned in favour of a more discretionary regime that could be risky and counterproductive, a new research paper has said. The paper titled 'Inflation Targeting In India: A Further Assessment' said the weight of food-price inflation in the CPI inflation basket should be reduced to …

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 …

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 …

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 …

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 …

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 …

Path to inclusive growth must be paved by price stability: RBI officials
1 year, 6 months ago

Path to inclusive growth must be paved by price stability: RBI officials

The Hindu  

Taming inflation and anchoring inflation expectations is key to helping revive consumer spending and private capital expenditure and thereby supporting growth, RBI officials wrote in an article in the monthly bulletin released on Friday. This, in turn, is moderating corporate sales and holding back private investment in capacity creation.,” the officials including Deputy Governor Michael Debabrata Patra wrote in ‘State …

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 …

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 …

Surging inflation: Why is it a key issue to address in the Union Budget 2023?
1 year, 10 months ago

Surging inflation: Why is it a key issue to address in the Union Budget 2023?

India TV News  

Budget 2023: The Indian currency earlier this fiscal year weakened against the dollar to an unexpected low. In April 2022, the annual inflation rate in India spiked to 7.79 per cent, which is considered to be sky-high for the current fiscal. The Kantar India Union Budget 2023 report claims that 75% Indians want the government to take swift action with …

DC Edit | Economic data spreading cheer, jobs still a concern
1 year, 11 months ago

DC Edit | Economic data spreading cheer, jobs still a concern

Deccan Chronicle  

If you placed all highlights of the economic data, released in the last few days both in India and the United States of America, as dots on a canvas to draw a picture, it would make for a happy smiley face. The country’s retail inflation eased to a one-year low of 5.72 per cent in December 2022, from 5.88 per …

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, …

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 …

Why the RBI is unlikely to slow down in curbing inflation
2 years, 2 months ago

Why the RBI is unlikely to slow down in curbing inflation

Live Mint  

Global growth is slowing rapidly, inflation is stubbornly high and central banks in developed nations are hiking interest rates by magnitudes not seen in decades. At other times, new data sources are introduced to make statistics more accurate, particularly to capture India’s informal sector better. Why the wait for new trade policy just got longer Busted: The myth of India …

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 …

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 …

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. …

Inflation is not a ‘red lettered’ priority for Centre now, says FM Nirmala Sitharaman
2 years, 3 months ago

Inflation is not a ‘red lettered’ priority for Centre now, says FM Nirmala Sitharaman

The Hindu  

Inflation is not a ‘red-lettered’ priority now for the government given that it has been brought down to a ‘manageable level’ over the past two months and job creation and equitable distribution of wealth were instead the key priorities as of now, Finance Minister Nirmala Sitharaman said on Wednesday. “I am not sure I can have the luxury of sequencing …

Escalation of geopolitical tensions biggest risk to India's growth outlook: RBI Monetary Policy Committee member
2 years, 4 months ago

Escalation of geopolitical tensions biggest risk to India's growth outlook: RBI Monetary Policy Committee member

Firstpost  

The Reserve Bank in its latest MPC meeting in August had decided to increase the benchmark lending rate by 50 basis points to 5.40 per cent to quell inflation New Delhi: The biggest risk to India’s growth outlook is an escalation of geopolitical tensions, especially if these tensions spread to the Asian region, RBI Monetary Policy Committee member Jayanth R …

RBI Bulletin: India's Inflation Still Elevated, May Need Monetary Policy Response
2 years, 4 months ago

RBI Bulletin: India's Inflation Still Elevated, May Need Monetary Policy Response

ABP News  

India’s inflation may still require a monetary policy response going forward as it remains above the target range even though it has eased in recent months, the Reserve Bank of India said in the monthly bulletin released on Thursday. The RBI said, “Inflation has edged down, but its persistence at elevated levels warrants appropriate policy responses to anchor expectations going …

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 …

RBI to remain flexible while aiming to tame inflation: Governor Shaktikanta Das
2 years, 5 months ago

RBI to remain flexible while aiming to tame inflation: Governor Shaktikanta Das

The Hindu  

Reserve Bank of India will continue calibrating policy to preserve and foster macroeconomic stability while bringing down inflation and will remain flexible in its approach, Governor Shaktikanta Das said on Saturday. The global economy is going through an uncertain time and concerns around growth and inflation persist, but the central bank believes that there could be some respite from rising …

Recession in advanced economies may cool prices in India
2 years, 5 months ago

Recession in advanced economies may cool prices in India

Live Mint  

Recessions in advanced economies may benefit India in a “perverse way” as a moderation in global commodities prices will help cool domestic inflation, according to Citigroup Inc.’s head of economics for the country. “India being a net importer of commodities should benefit on the inflation front,” Samiran Chakraborty, managing director and chief economist for India at Citigroup, said in an …

Inflation Biggest Challenge but RBI Taking Steps to Deal With It, Says Shaktikanta Das
2 years, 6 months ago

Inflation Biggest Challenge but RBI Taking Steps to Deal With It, Says Shaktikanta Das

News 18  

Inflation has become the biggest challenge for several countries and the Reserve Bank of India is taking steps to effectively deal with it, the central bank’s governor Shaktikanta Das has said. In an interview, the RBI chief said that the bank had been taking measures to rebalance liquidity through VRRRs, roll back the expansion of our balance sheet and the …

India's retail inflation eases but will prices stop rising?
2 years, 6 months ago

India's retail inflation eases but will prices stop rising?

India Today  

India's retail inflation eased to 7.04 per cent in May from the alarming level of 7.79 per cent recorded in April. Even after the drop, the inflation print stayed above the RBI's upper tolerance level of 6 per cent for the fifth month in a row. Among others, the prices of eggs and 'pulses and products' showed deceleration, with negative …

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 …

Expert Explains: What’s the remedy against rising inflation?
2 years, 6 months ago

Expert Explains: What’s the remedy against rising inflation?

The Hindu  

Published : May 30, 2022 06:00 IST Amid all the anxieties in a time of inflation came a moment of brief reassurance, or at least the pretence of it. “Evidence on consumption patterns”, it said, “suggests that inflation in India has a lesser impact on low-income strata than on high-income groups”. By plotting these expenditure patterns onto the rates of …

Hard times ahead! Is the government concerned about inflation’s impact?
2 years, 6 months ago

Hard times ahead! Is the government concerned about inflation’s impact?

The Hindu  

Published : May 30, 2022 06:00 IST The country has faced worse inflationary situations in the past. The food price inflation surged to a 17-month high of 8.38 per cent in April from 7.68 per cent in March. Transport and communication inflation increased to 10.91 per cent in April from 8 per cent in the previous month because of rising …

RBI, Govt Taken Steps To Control Inflation; Actions To Have Sobering Impact Soon: Shaktikanta Das
2 years, 7 months ago

RBI, Govt Taken Steps To Control Inflation; Actions To Have Sobering Impact Soon: Shaktikanta Das

News 18  

Amid the prevailing inflationary pressure with the CPI number touching an eight-year high of 7.79 per cent, RBI Governor Shaktikanta Das on Monday said the central bank and the government have taken a number of steps in the past few months to control price rise in the country and the actions will have a sobering impact on inflation going forward. …

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 …

Retail inflation: The step ahead
2 years, 7 months ago

Retail inflation: The step ahead

Hindustan Times  

Mint Street and North Block must maintain close coordination in making sure that our policy response does not throw the baby out with the bathwater But will a monetary tightening be able to control inflation? That the April inflation number would be higher than the 6.95% reading in March 2022 was a given, especially after the unscheduled rate hike by …

Retail inflation rises to 7.8%, highest in 8 years
2 years, 7 months ago

Retail inflation rises to 7.8%, highest in 8 years

Hindustan Times  

Retail prices grew at 7.8% in April, the highest since the Narendra Modi-led National Democratic Alliance government assumed power in May 2014, squeezing household budgets, potentially affecting consumer confidence, and setting the stage for more monetary action by the Reserve Bank of India’s Monetary Policy Committee which raised the rate last week to combat spiking inflation. Experts believe that this …

‘Inflation is the biggest challenge now’
2 years, 7 months ago

‘Inflation is the biggest challenge now’

The Hindu  

Inflation is now the biggest challenge for India’s policy makers rather than the U.S. Federal Reserve’s taper programme and measures like interest rate increases to stem rising prices could dent the fledgling consumption demand recovery from the pandemic not just in India but globally, a senior official said on Wednesday. “The nearly 7% inflation print for March came four days …

Inflation control needs another model
2 years, 7 months ago

Inflation control needs another model

The Hindu  

Inflation is back as a talking point in the public arena, some would say belatedly, for wholesale price inflation has been in the double digits for over 12 months. It may appear contradictory to ask whether the RBI’s stated policy of ‘inflation targeting’, implemented through changes in the interest rate, can control inflation, but we show here why that would …

Inflation, the key challenge
2 years, 7 months ago

Inflation, the key challenge

Hindustan Times  

Reserve Bank of India governor Shaktikanta Das surprised everyone when he said that the Monetary Policy Committee of the central bank convened an unscheduled meeting between May 2 and 4, and decided to hike the policy rate by 40 basis points and the Cash Reserve Ratio by 50 basis points. PREMIUM Reserve Bank of India Governor Shaktikanta Das digitally delivers …

DC Edit | Economy on the upswing?
2 years, 7 months ago

DC Edit | Economy on the upswing?

Deccan Chronicle  

The Goods and Services Tax collection in April, which crossed the Rs.1.5 lakh crore mark for the first time, would have brought cheer in North Block, especially as it comes in the midst of all-pervading uncertainty. According to a release of the Union ministry of finance, the GST revenue was Rs.1,67,540 crore in April, which includes Rs.36,705 crore collected on …

Inflationary surge is a global phenomenon today, but Modi’s India has done much better than others
2 years, 8 months ago

Inflationary surge is a global phenomenon today, but Modi’s India has done much better than others

Firstpost  

Today’s inflationary surge is global in nature and is being felt by most advanced economies, emerging markets and developing economies. Inflation in the US continued to surge to a massive 8.5 per cent in March 2022, after an equally steep rise of 7.9 per cent and 7.5 per cent in February and January 2022 respectively. Fuel inflation in the US …

DC Edit | No relief from rising prices
2 years, 8 months ago

DC Edit | No relief from rising prices

Deccan Chronicle  

The Consumer Price Index — also called retail inflation — in India shot up to a 17-month high of 6.95 per cent in March 2022. Though the inflation remained above six per cent for the last three months, the RBI preferred to support economic growth by restraining itself from increasing interest rates to curb inflationary expectations. Unlike in advanced economies …

Price Hike Alert: Companies Across Sectors To Raise Rates Amid High Input Costs
2 years, 8 months ago

Price Hike Alert: Companies Across Sectors To Raise Rates Amid High Input Costs

News 18  

Indian manufacturers are running out of capacity to absorb rising input costs and companies across sectors are raising prices in response to the global supply disruptions and oil price surge due to the Russia-Ukraine war, according to a report. Higher retail fuel prices are also threatening to hurt demand just as the economy returned to its first full-year of growth …

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