Search Result for : Cpi Inflation

The Dollar Business Bureau According to the Japanese financial services major Nomura’s report, India’s retail inflation is likely to touch 4.4% in the second half of 2017. This will in all likelihood be driven by the food prices and the base effect, the report specified. Although inflation has bottomed during the medium term, the report says that it is likely to see a significant uptrend and rise above RBI’s estimated target. In its research note Nomura says, “In India, we expect CPI (Consumer Price Index) inflation to rise well above the Reserve Bank of India's mid-point target (4%), with core inflation rising to 6.3% in 2018, led by rural wages, minimum support prices, a closing output gap and the supply demand cobweb model ...

Abin Daya Sugar is becoming not so sweet for retail consumers, with prices rising fast in the domestic market. CPI inflation on sugar has remained in double digits for 10 months in a row now. The expectation for Feb 2016 is also not any different. In the global scene, while the prices may have dropped marginally during the recent months, they still remain high compared to the previous year levels. However, the recently published Trade Policy Agenda of the US Administration for 2017 hints at changes that might lead to concerns for India. The US is India’s largest export market at $40 bn worth of exports per year. Any event which changes Indo-US trade dynamics and affects this number will have a significant ...

The Dollar Business Bureau (Sourced from PTI) The government revealed today that the consumer price index (CPI) for the month of November 2016 has seen a decrease of 3.63% compared to 4.20% seen in October. The CPI was 5.41% in the same month the previous year. While the urban inflation rate (CPI) was 3.05%, the rural was 4.13% showing a marked decrease than that of November 2015 when the urban inflation rate was 4.71% and the rural 5.95%. The consumer price index in November decreased due to a sharp decline in the consumer food price index (CFPI). The CFPI in the month of November was 2.11% compared to that of October when it was 3.32%.  Inflation of food and beverages which have a weightage of ...

The Dollar Business Bureau The Reserve Bank Governor Raghuram G Rajan has maintained status quo by holding the key rates in the third bi-monthly monetary policy statement for FY 2016-17. The RBI has retained repo rate under the liquidity adjustment facility (LAF) at 6.5%, cash reserve ratio (CRR) of scheduled banks at 4%, reverse repo rate under the LAF at 6%, marginal standing facility (MSF) rate and the Bank Rate at 7% each. The more-than-anticipated upsurge in food prices has increased the trajectory of retail inflation to 22-month high in June. Prices of pulses and cereals are increasing continuously. The inflation, excluding food and fuel, is likely to grow. Under these inflation risks, it is appropriate to keep the repo rate unchanged. Easy liquidity ...

The Dollar Business Bureau The Reserve Bank of India (RBI) is expected to slash key interest rates by 25 basis points in its upcoming August 9 policy review meet, if pulses price inflation comes down on account of good weather, said Bank of America Merrill Lynch (BofA-ML) in a report. “With good rains, pulses’ sowing for the kharif season has jumped 39% above last year’s sowing. This should pull down pulses prices by 20% and cool CPI inflation to 5.1% by March,” the research note said. Pulses inflation is currently running at 27% on a poor summer rabi crop. The global brokerage firm said the RBI could cut policy reasons on three reasons. First, a good monsoon will reduce agiflation, second, the core-CPI inflation has softened ...

Source: PTI The Reserve Bank is likely to keep interest rates on hold in the next month's monetary policy meet, but may slash the key lending rate by a 50-75 basis points by March 2016, Morgan Stanley today said. The investment firm believes that the RBI will leave the interest rates unchanged in its August 4 policy review meet given the acceleration in June headline CPI inflation and increase in core CPI for the third consecutive month. "We believe the RBI is likely to wait and watch how the monsoon season pans out and keep rates on hold in the August monetary policy meeting," Morgan Stanley said. The brokerage however expects the headline CPI inflation to decelerate to 4.9 per cent by ...