New Delhi: A normal monsoon season this year is expected to mitigate some inflationary pressures, especially being witnessed in certain food commodities.Besides, healthy and well-spread rains will repose faith in the country's economy which faces ever increasing risk of 'Stagflation' due to high global commodities' costs.In March, the retail inflation rate climbed to nearly 7 per cent triggering fears of an imminent rate hike by the RBI in its next MPC meeting. The present inflationary pressure has made this year's monsoon season crucial for propelling growth not just for the agriculture sector but for the whole of India Inc.In terms of predictions, both Skymet and IMD have given a forecast for a 'normal' Southwest Monsoon for the current year at 99 per cent and 98 per cent of the long period average (LPA) respectively.India has been relatively fortunate to receive a favourable pattern of rainfall consecutively over the last 3 years -- 2019, 2020 and 2021 -- when the actual rainfall has been recorded at 110 per cent, 109 per cent and 99 per cent of the LPA.According to Emkay Global Financial Services Lead Economist Madhavi Arora: "A normal monsoon should cushion food prices, especially at the time, when global food and agri-inflation is soaring." At present, seasonal factors along with high input costs have pushed up food prices.The rate of rise in the Consumer Food Price Index, which measures the changes in retail prices of food products, increased by 7.68 per cent last month from 5.85 per cent in February 2022 and 4.87 per cent in March 2021."If the predictions come true for this year, this will be the fourth successive year of a favourable monsoon and healthy agricultural prospects. A regular monsoon with healthy rainfall in the initial period of June-July'22 will help to moderate the prices of fruits and vegetables which have a significant weightage in the food basket," said Suman Chowdhury, Chief Analytical Officer, Acuite Ratings &amp; Research."Food inflation has started to firm up again towards the end of FY22 with the print in March-22 at 7.5 per cent YoY which is the highest in the last 16 months."Besides, the rise in key input prices will impact the agriculture sector's growth. This impact will cascade into other industries such as two-wheelers, cement and steel."The prospects for the agricultural sector remain bright in FY23 with the prediction of a normal monsoon by IMD. However, prices of key inputs like fertilisers, diesel have been on the rise recently which could play a spoilsport," said Paras Jasrai, Analyst, India Ratings and Research."Nonetheless, India Ratings' forecast suggests that the agriculture sector would witness an annual growth of 3 per cent in FY23."In addition, Aditi Nayar, Chief Economist, ICRA said: "The encouraging forecast of a normal monsoon in 2022 coupled with healthy reservoir levels in all the regions augur well for a timely onset of kharif sowing.""However, a good monsoon may not be able to douse the prices of those items that are currently pushing up food inflation in India such as edible oils."—IANS

 A normal monsoon season this year is expected to mitigate some inflationary pressures, especially being witnessed in certain food commodities.

Normal Monsoon 2022 Critical To Douse Some Inflationary Flames

New Delhi: Retail inflation soared to an eight-year high of 7.79 per cent in April on annual basis mainly due to stubbornly high food prices, remaining above the RBI's upper tolerance level for the fourth month in a row.Inflation based on the Consumer Price Index (CPI) was 6.95 per cent in March this year and 4.23 per cent in April 2021.Inflation in the food basket rose to 8.38 per cent in April from 7.68 per cent in the preceding month and 1.96 per cent in the year-ago month.The Reserve Bank of India has been mandated by the government to ensure that inflation remains at 4 per cent with a margin of 2 per cent on either side.The retail inflation has remained above 6 per cent since January 2022.After the off-cycle Monetary Policy Committee (MPC) meeting of RBI last week, RBI Governor Shaktikanta Das had said the adverse effects of the unprecedented high global food prices due to the ongoing geopolitical situation are reflecting in the domestic market as well, and going forward inflationary pressures are likely to continue.Meanwhile, sources said the central bank is likely to raise inflation projections in the MPC meeting next month and would also consider a rate hike to tame inflation which is above its comfort level.Earlier this month, the MPC raised the key policy rate (repo) by 40 basis points with an aim to tame the rising inflation.It was the first rate hike after August 2018.—PTI

Retail inflation soared to an eight-year high of 7.79 per cent in April on annual basis mainly due to stubbornly high food prices, remaining above the RBI's upper tolerance level for the fourth month in a row.

Retail inflation soars to 8-yr high of 7.79% in April

Kashipur: Saying that India has broadly come out of the turbulence that occured due to the COVID-19 pandemic, Principal Economic Advisor to Government of India Sanjeev Sanyal on Friday asserted that a number of steps are being taken by the government to address the rising inflation.Speaking to ANI on the sidelines of a convocation ceremony he was attending as the Chief Guest at the Indian Institute of Management (IIM) in Kashipur, Sanyal said that a speed up in the economic recovery can be seen. IIM Kashipur was set up by the Government of India in 2011 and offers a number of courses in business administration. Speaking about the measures taken to deal with inflation, Sanyal said, "We are taking a number of steps, on one side, as you know we have extended the free ration distribution that was introduced, on the other hand, in November, we had reduced a number of taxes... and you must be seeing that the Reserve Bank is slowly increasing the interest rates.""Taking all these measures into account, I think that we are broadly in a good situation economically and will be able to keep inflation under control in the medium term," he added."It doesn't mean that we don't have problems still. There are problems, the oil prices have increased throughout, there are problems due to that," he further added. On the economic recovery post-COVID-19 pandemic, Sanyal highlighted a number of steps taken by the government, saying that a lot of sectors, like tourism, which were shut down, are coming back. "So, broadly, I would say that the pace in our economic system, has come back, for the most part," Sanyal said, adding, "And this year, according to IMF, our economy might see economic growth of 8.2 per cent, it is the fastest in the world and I would say that it means that broadly we are now out of the turbulence that occured due to the pandemic."During the convocation ceremony, Sanyal congratulated the passing out students, while emphasizing on the importance and challenges in making choices.The Principal Economic Advisor gave the example of the mechanism through which the government went through in March 2020, in order to arrive at the decision of imposing the nationwide lockdown."We knew something very bad had happened in China, the Chinese weren't very clear about what it was. We just saw these video clips, as many of you have on social media," Sanyal said."There were experts who said that this wasn't very much worse than a bad flu, you remember them from TV debates and so on and then there were others who said that 100s of millions of people would be dead from this within a few months. Effectively, the one thing we understood out of all of this is that nobody knew what was about to happen," he further said. Explaining the decision of lockdown, Sanyal said, "What we were doing was essentially hedging for the very worst outcome in a situation where we had no information, hedging for the possibility that the very worst was going to happen." On the government's course of action, if the COVID-19 situation worsens in the country and the possibility of another nationwide lockdown, Sanyal said, "We are always alert that if a new wave comes, we will have to do something."Sanyal went on to underline, "We are alert because this pandemic is dangerous, if it goes out of control like last year, what impact it can have." "But the updates that we have till now, the figures that are coming, we want to keep the economy open as far as possible," Sanyal added.&nbsp;—ANI

Saying that India has broadly come out of the turbulence that occured due to the COVID-19 pandemic, Principal Economic Advisor to Government of India Sanjeev Sanyal on Friday asserted that a number of steps are being taken by the government to address the rising inflation.

Govt Taking Measures To Deal With Inflation, Will Be Able To Control It In Medium-Term: Principal Economic Advisor

Delhi: Global trends, WPI inflation data for April and the ongoing quarterly earnings of corporates would be the major driving factors for the stock markets, analysts said.Investors would also keep a tab on the movement of foreign institutional investors who are on a selling spree in the domestic equity market for the past many days."Inflation concern and monetary tightening across the globe are key concerns for the equity markets."Equity markets are under the strong grip of bears however they look extremely oversold and due for a pullback rally."The sell-off in the US market, especially in tech stocks, was very severe and there is some stability in the last two trading sessions that may provide some respite to the bulls," said Santosh Meena, Head of Research, Swastika Investmart Ltd.Meena said there are no major cues for this week therefore direction of global cues will be important, however some stock-specific movement will continue amid the tail-end of Q4 earnings."On the domestic front, listing of LIC IPO will be a key sentimental trigger for the Indian equity market."FIIs are selling relentlessly whereas DIIs are trying to compensate for their selling therefore their behaviours will also play an important role in the direction of the market."Movement of the dollar index, crude oil prices, and&nbsp;direction of rupee will be other important factors," he added.Investors would also watch out for WPI inflation data for April which would be announced on Tuesday, analysts said.Shrikant Chouhan, head of equity research (retail), Kotak Securities, said, "Rising bond yields, high inflation levels and monetary policy tightening action by central banks globally will weigh on near term sentiments which could keep markets volatile."Stock-specific action will continue due to ongoing result season."Bharti Airtel, DLF, IOC, ITC, IDFC, JK Tyre &amp; Industries and NTPC are among the companies that will announce their financial results this week.Last week, the Sensex lost 2,041.96 points or 3.72 per cent, while the Nifty plunged 629.10 points or 3.83 per cent.Lingering concerns over weakening rupee, global interest rate hikes, elevated inflation numbers and lockdowns in China kept the markets on the edge last week, said Vinod Nair, head of research at Geojit Financial Services.Going ahead, the major determinant for market direction would be the pace of decline in inflation in response to the Fed measures, he added.—PTI

Global trends, WPI inflation data for April and the ongoing quarterly earnings of corporates would be the major driving factors for the stock markets, analysts said.

Factors that will drive markets this week

Bengaluru: The Reserve Bank of India will follow its surprise May rate rise with another hike at its meeting next month, according to a majority of analysts polled by Reuters who were exceptionally split on the size of the move. India's retail inflation accelerated to an eight-year high in April, remaining above the central bank's tolerance limit for a fourth month in a row, and is likely to stay elevated.The sudden change in views on surging inflation and how to tame it means the RBI will likely take the repo rate, currently at 4.40%, back to at least its pre-pandemic level next quarter and not in 2023 as previously thought. In the latest Reuters poll, over a quarter of economists, 14 of 53, expected the RBI to hike by 35 basis points to 4.75% next month, while 20 expected a larger move ranging from 40-75 basis points, including ten who forecast a 50 basis point hike.Twelve respondents forecast a modest rate rise (10 to 25 basis points) while seven saw no move at the June 6-8 meeting.At the meeting, the RBI is likely to also raise its inflation projection for the current fiscal year and will consider more interest rates, a source aware of the developments told Reuters. However, such an exceptional splintering of views on how the RBI will follow up on its unscheduled 40 basis point move on May 4 shows the challenge facing forecasters who were completely taken off guard and not given clear guidance on what comes next."We need to really see the second action...in June to really get a grip of exactly what is the scale of policy normalisation that we can expect and the pace as well," said Upasna Bhardwaj, senior economist at Kotak Mahindra Bank, who is predicting a 35 basis point rise to 4.75%, the median forecast for June. But she added that "markets are clear on one account, that there is going to be aggressive policy rate hikes because inflation is the biggest threat at this point in time."That aggressive outlook in part reflects what other central banks were forecast to do, especially the U.S. Federal Reserve, which was expected to hike rates by 50 basis points at its upcoming meetings after a similar move earlier this month.Nearly one-third of respondents, 17 of 53, forecast the repo rate at 5.15% next quarter, back to where it was before the pandemic. Another 20 predicted rates to go even higher. More interest rate rises were on the way, with rates reaching 5.40% or higher by end-2022. Respondents from a much smaller sample who had forecasts going to the end of next year, 11 of 15, saw the repo rate hitting 5.75% or higher.Further, the chances of the RBI joining some of its peers in hiking 50 basis points appears stronger now than before. Just over half of respondents to an additional question, 22 of 41, saw a high or very high chance of a 50 basis point RBI rate hike at the next meeting, while the rest saw a low or very low chance. That was an abrupt change from a survey taken last month, where the majority saw those chances as low. "​Communications out of the RBI could have been a lot better...this kind of surprise move certainly does not help with policy credibility," said Tuuli McCully, head of Asia-Pacific economics at Scotiabank. "I see their reasoning why they felt like they couldn't wait any longer and had to act, but it certainly is an issue... if they say something and then act the other way then, it doesn't help with the communication." Still, when asked what the RBI's surprise repo rate hike did for its credibility, more than two-thirds of respondents, 24 of 34, said improved while the rest said worsened or did nothing.—REUTERS

The Reserve Bank of India will follow its surprise May rate rise with another hike at its meeting next month, according to a majority of analysts polled by Reuters who were exceptionally split on the size of the move.

'RBI likely to raise rates again in June due to surging inflation'

New Delhi: Wholesale price-based inflation spiked to a record high of 15.08 per cent in April on rising prices across segments from food to commodities.Points to note:1) The WPI-based inflation was 14.55 per cent in March and 10.74 per cent in April last year.2) According to the Commerce and Industry Ministry, the high rate of inflation in April 2022 was primarily due to rise in prices of mineral oils, basic metals, crude petroleum &amp; natural gas, food articles, non-food articles, food products and chemicals &amp; chemical products etc. as compared to the corresponding month of the previous year3) The WPI inflation has remained in double digit for the 13th consecutive month since April last year.4) Inflation in food articles was 8.35 per cent, as prices of vegetables, wheat, fruits and potato witnessed sharp spike over the year-ago period.5) In the fuel and power basket, inflation was 38.66 per cent, while in manufactured products and oil seeds, it was 10.85 per cent and 16.10 per cent, respectively.6) Inflation in crude petroleum and natural gas was 69.07 per cent in April.7) Data released last week showed that retail inflation rose to a near 8-year high of 7.79 per cent in April, remaining above the Reserve Bank's inflation target for the fourth straight month.8) To tame stubbornly high inflation, the RBI earlier this month hiked its key interest rate by 0.40 per cent and cash reserve ratio by 0.50 per cent in a surprise move.—PTI

Wholesale price-based inflation spiked to a record high of 15.08 per cent in April on rising prices across segments from food to commodities.  

WPI inflation at record high of 15.08% in April: 8 points

Wholesale price-based inflation spiked to a record high of 15.08 per cent in April on rising prices across segments from food to commodities.



New Delhi: Wholesale price-based inflation spiked to a record high of 15.08 per cent in April on rising prices across segments from food to commodities. The WPI-based inflation was 14.55 per cent in March and 10.74 per cent in April last year."The high rate of inflation in April 2022 was primarily due to rise in prices of mineral oils, basic metals, crude petroleum &amp; natural gas, food articles, non-food articles, food products and chemicals &amp; chemical products etc. as compared to the corresponding month of the previous year," the commerce and industry ministry said in a statement. The WPI inflation has remained in double digit for the 13th consecutive month since April last year.Inflation in food articles was 8.35 per cent, as prices of vegetables, wheat, fruits and potato witnessed sharp spike over the year-ago period.In the fuel and power basket, inflation was 38.66 per cent, while in manufactured products and oil seeds, it was 10.85 per cent and 16.10 per cent, respectively.Inflation in crude petroleum and natural gas was 69.07 per cent in April. Data released last week showed that retail inflation rose to a near 8-year high of 7.79 per cent in April, remaining above the Reserve Bank's inflation target for the fourth straight month. To tame stubbornly high inflation, the RBI earlier this month hiked its key interest rate by 0.40 per cent and cash reserve ratio by 0.50 per cent in a surprise move.—PTI

Wholesale price-based inflation spiked to a record high of 15.08 per cent in April on rising prices across segments from food to commodities.

WPI inflation at record high of 15.08% in April

New Delhi: Government is considering spending an additional ₹ 2 lakh crores ($26 billion) in the current fiscal to cushion consumers from rising prices and fight multi-year high inflation, two government officials told Reuters. The new measures will be double the ₹ 1 lakh crore hit government revenues could take from tax cuts on petrol and diesel the finance minister announced on Saturday, both the officials said.India's retail inflation rose to an eight-year high in April, while wholesale inflation rose to at least a 17-year high, posing a major headache for Prime Minister Narendra Modi's government ahead of elections to several state assemblies this year. "We are fully focussed on bringing down inflation. The impact of Ukraine crisis was worse than anyone's imagination," one official, who did not want to be named, said.The government estimates another ₹ 50,000 crore additional funds will be needed to subsidise fertilisers, from the current estimate of ₹ 2.15 lakh crore, the two officials said. The government could also deliver another round of tax cuts on petrol and diesel if crude oil continues to rise that could mean an added hit of ₹ 1 lakh crore - Rs1.5 lakh crore in 2022-23 started on April 1, the second official said.Both the officials did not want to be named as they are not authorised to disclose the details. The Government did not immediately comment outside office hours. One of the officials said the government may need to borrow additional sums from the market to fund these measures and that could mean a slippage from the its deficit target of 6.4 per cent of GDP for 2022-23. The official did not quantify the amount of borrowing or fiscal slippage saying it depended on how much funds they eventually divert from the budget in the fiscal year.The Government plans to borrow a record ₹ 14.31 lakh crore in the current fiscal year, according to budget announcements made in February. The other official said the additional borrowing will not impact the planned April-September borrowing of ₹ 8.45 lakh crore and may be undertaken in January-March 2023.—REUTERS

Government is considering spending an additional ₹ 2 lakh crores ($26 billion) in the current fiscal to cushion consumers from rising prices and fight multi-year high inflation, two government officials told Reuters.

India considering spending addl $26 bn to fight inflation: Sources

London: UK Chancellor Rishi Sunak on Thursday tabled a series of measures in Parliament, including one-off payments for struggling families and a temporary levy on high profits of oil and gas companies, as part of a GBP 15 billion Cost of Living Support package to address Britain’s soaring inflation and cost-of-living crisis. The Indian-origin finance minister, who has been under mounting pressure to come up with a plan to tackle the UK’s highest inflation rate in decades, said he knows people are worried about bills.In his statement to the House of Commons, Sunak said the government “will not sit idly by” and has the tools to combat inflation over time. “We know that people are facing challenges with the cost of living and that is why today I’m stepping in with further support to help with rising energy bills,” said Sunak. “We have a collective responsibility to help those who are paying the highest price for the high inflation we face. That is why I’m targeting this significant support to millions of the most vulnerable people in our society. I said we would stand by people and that is what this support does today,” he said. A new, one-off GBP 650 payment will be offered to more than 8 million low-income households on Universal Credit, Tax Credits, Pension Credit and other benefits, with separate one-off payments of GBP 300 to pensioner households and GBP 150 to individuals receiving disability benefits. The minister had already confirmed an energy bills discount due to come in from October. On Thursday, he announced a doubling of that discount from GBP 200 to GBP 400, with the requirement to pay it back over time scrapped. This effectively means low-income households will receive a GBP 400 discount on their energy bills from October to address the impact of a particularly sharp rise in global fuel prices. The Treasury claims that the new Cost of Living Support package will mean that almost all of the 8 million most vulnerable households will receive at least GBP 1,200 of extra support this year. To help pay for the extra support, the finance minister said a new temporary 25 per cent Energy Profits Levy would be introduced for oil and gas companies, reflecting their extraordinary profits. But in order to increase the incentive to invest, the new levy will include a new 80 per cent investment allowance. Sunak pointed out that the oil and gas sector is making “extraordinary profits” and therefore such a levy will be charged on profits at a rate of 25 per cent and will eventually be phased out. “It is also right that those companies making extraordinary profits on the back of record global oil and gas prices contribute towards this. That is why I’m introducing a temporary Energy Profits Levy to help pay for this unprecedented support in a way that promotes investment,” said Sunak. The Opposition Labour Party has been calling for such an intervention on high profits of the energy giants in the form of a “windfall tax”. While Labour claimed the government was effectively enforcing its idea under a different form, Sunak insisted the new levy marked a “sensible middle ground” on the matter. The Opposition has also attacked the government over the announcement being timed to change the headlines away from the partygate scandal, after a damning inquiry report had concluded leadership failures at the very top of government with lockdown-breaching parties in Downing Street.—PTI

UK Chancellor Rishi Sunak on Thursday tabled a series of measures in Parliament, including one-off payments for struggling families and a temporary levy on high profits of oil and gas companies, as part of a GBP 15 billion Cost of Living Support package to address Britain’s soaring inflation and cost-of-living crisis.

UK minister Rishi Sunak unveils package to cope with rising costs

New Delhi: Sounding a note of caution, the Reserve Bank said on Friday said there is a risk of high wholesale price inflation (WPI) putting pressure on the retail inflation, albeit with a lag. In its annual report, the RBI said that the cost-push pressures from high industrial raw material prices, transportation costs and global logistics, and supply chain bottlenecks continue to impinge on core inflation. "The substantial wedge between wholesale and retail price inflation amidst a sharp rise in manufactured products' inflation poses the risk of a possible passthrough of input cost pressures to retail inflation with a lag, although slack in the economy is muting the pass-through," the central bank noted. The conflict over Ukraine and the consequent spike in commodity prices has overcast the outlook for inflation in India as in the rest of the world, it added.To control spiralling prices, the government had recently cut excise duty on petrol and diesel and also waived import duty on some raw materials used in the steel and plastic industry. Besides, export duty was hiked on iron ore and iron pellets. A rise in price across all items from fuel to vegetables and cooking oil pushed WPI or wholesale price inflation to a record high of 15.08 per cent in April and retail inflation to a nearly eight-year high of 7.79 per cent.High inflation prompted the Reserve Bank to hold an unscheduled meeting to raise the benchmark interest rate by 40 basis points to 4.40 per cent earlier this month.—PTI

Sounding a note of caution, the Reserve Bank said on Friday said there is a risk of high wholesale price inflation (WPI) putting pressure on the retail inflation, albeit with a lag.

High WPI may put pressure on retail inflation: RBI

New Delhi: India's manufacturing sector growth steadied in May, with new orders and production increasing at similar rates to those registered in the previous month, while demand showed signs of resilience and improved further in spite of another uptick in selling prices, a monthly survey said on Wednesday. The seasonally adjusted S&amp;P Global India Manufacturing Purchasing Managers' Index (PMI) stood at 54.6 in May, little changed from 54.7 in April, pointing to a sustained recovery across the sector.The May PMI data pointed to an improvement in overall operating conditions for the eleventh straight month. In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction. "India's manufacturing sector sustained strong growth momentum in May. "Thanks in part to the sharpest rise in international sales for eleven years, total new orders expanded further. In response to demand resilience, companies continued with their efforts to rebuild stocks and hired extra workers accordingly," said Pollyanna De Lima, Economics Associate Director at S&amp;P Global Market Intelligence.Amid reports of new business gains, sustained improvements in demand and looser COVID-19 restrictions, manufacturers continued to scale up production in May."The rate of growth was marked, above trend and broadly in line with that recorded in April," the survey said.The May PMI data also highlighted a notable uptick in growth of new export orders.The rate of expansion was sharp and the fastest since April 2011.On the employment front, manufacturing sector jobs rose further in May, owing to ongoing improvements in sales.Although only slight, the rate of employment growth picked up to the strongest since January 2020.On the price front, input costs rose for the 22nd successive month in May, with companies reporting higher prices for electronic components, energy, freight, foodstuff, metals and textiles.Although softer than in April, the rate of inflation remained historically elevated."There was little-movement in the rate of input price inflation during May, which remains historically high, but output charge inflation surged to its highest in over eight-and-a-half years as companies continued to transfer additional cost burdens to their clients," Lima said.The survey further said that business sentiment was dampened by inflation concerns in May, with the overall level of confidence the second-lowest in just over two years."While around 9 per cent of panellists forecast output growth over the coming 12 months, 88 per cent foresee no change from present levels," the survey said. High inflation had led to the Reserve Bank raising the benchmark interest rate by 40 basis points in an unscheduled review in May.It is expected to take similar measures when the Monetary Policy Committee meets for the bimonthly review on June 8.According to official data, India's economy grew by 4.1 per cent in the fourth quarter of 2021-22, pushing up the annual growth rate to 8.7 per cent.—PTI

India's manufacturing sector growth steadied in May, with new orders and production increasing at similar rates to those registered in the previous month, while demand showed signs of resilience and improved further in spite of another uptick in selling prices, a monthly survey said on Wednesday.

Manufacturing sector growth steadied in May despite high inflation

India's manufacturing sector growth steadied in May, with new orders and production increasing at similar rates to those registered in the previous month, while demand showed signs of resilience and improved further in spite of another uptick in selling prices, a monthly survey said on Wednesday.



Mumbai: Reserve Bank of India (RBI) on Wednesday raised the interest rate by 50 basis points to a two-year high of 4.9 per cent as it doubled down to tame inflation that has surged in the last couple of months.The rate hike comes on the back of a 40 bps increase effected by RBI at an unscheduled meeting on May 4.All the six members of the Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, unanimously voted for the latest rate hike.Consumer Price Index (CPI) based inflation, which RBI factors in while arriving at its monetary policy, galloped for the seventh straight month to touch an 8-year high of 7.79 per cent in April.—PTI

Reserve Bank of India (RBI) on Wednesday raised the interest rate by 50 basis points to a two-year high of 4.9 per cent as it doubled down to tame inflation that has surged in the last couple of months.

RBI hikes interest rate by 50 bps to tame inflation

Mumbai: The Reserve Bank of India (RBI) on Wednesday raised inflation forecast for the current financial year to 6.7 per cent from its earlier projection of 5.7 per cent. As per the RBI's new projection announced after the Monetary Policy Committee (MPC) meeting, inflation is likely to remain above the central bank's upper tolerance limit of 6 per cent for the first three quarters of 2022-23. Inflation is projected to remain 7.5 per cent in the first quarter of the current financial year. In the second quarter, it is projected at 7.4 per cent. For the third quarter, it is projected at 6.2 per cent.Inflation is likely to come within the RBI's tolerance limit in the fourth quarter of 2022-23. For the fourth quarter of the current financial year, the RBI's forecast for inflation is 5.8 per cent."It may be noted that around 75 per cent of the increase in inflation projections can be attributed to the food group. Further, the baseline inflation projection of 6.7 per cent for 2022-23 does not take into account the impact of monetary policy actions taken today," RBI Governor Shaktikanta Das said in the monetary policy statement.Between February and April, headline inflation has increased by about 170 basis points. With no resolution of the war in sight and the upside risks to inflation, prudent monetary policy measures would ensure that the second-round effects of supply-side shocks on the economy are contained and long-term inflation expectations remain firmly anchored and inflation gradually aligns close to the target, he said. "The monetary policy actions including withdrawal of accommodation will be calibrated keeping in mind the requirements of the ongoing economic recovery," Das added.Inflation has been above the RBI's 2-6 per cent target band since the beginning of this year. As per the latest available data, India's Consumer Price Index (CPI) based inflation surged to eight-year high of 7.79 per cent in April. It was the fourth consecutive month when inflation touched or was above the upper tolerance level of 6 per cent. The surge in headline inflation was seen across all major categories.In order to tame the inflationary pressure, the RBI on Wednesday decided to hike policy repo rate by 50 basis points to 4.9 per cent. The global geopolitical situation remains fluid and commodity markets remain on the edge, rendering heightened uncertainty to the domestic inflation outlook. Certain positive developments on the prices front in recent weeks may help to ease the acute price pressures to some extent, the RBI governor noted. These would include expectations of a normal south-west monsoon and kharif agricultural season; the recent supply-side measures taken by the government and the unfolding of their impact; lifting of the palm oil export ban by Indonesia; and signs of moderation in global industrial metal price indices, he said."Our quick survey of urban households undertaken after the excise duty cuts on petrol and diesel on May 21, 2022, shows a significant moderation in their inflation expectations: declines of 190 basis points in their three months ahead expectations and 90 basis points in one year ahead expectations. In such a scenario, further reduction of State VATs on petrol and diesel across the country can certainly contribute to softening of the inflationary pressures as well as expectations," Das said. "Experience teaches us that preserving price stability is the best guarantee to ensure lasting growth and prosperity. Our actions today will impart further credibility to our medium-term inflation target, which is the central tenet of a flexible inflation targeting framework," the RBI Governor said after the Monetary Policy Committee meeting.—ANI

 The Reserve Bank of India (RBI) on Wednesday raised inflation forecast for the current financial year to 6.7 per cent from its earlier projection of 5.7 per cent. As per the RBI's new projection announced after the Monetary Policy Committee (MPC) meeting, inflation is likely to remain above the central bank's upper tolerance limit of 6 per cent for the first three quarters of 2022-23.

RBI raises inflation forecast for FY 2022-23 to 6.7 per cent

Mumbai: Reserve Bank 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 measures which they consider as necessary," Das said addressing the customary post-policy press conference at the central bank headquarters. The remarks came after the RBI sharply increased its FY23 average consumer price inflation estimate to 6.7 per cent from the earlier 5.7 per cent, and attributed a bulk of the increase to be coming from the supply side troubles, with food inflation alone accounting for three-fourths of the increase in the estimate.The government had last month cut excise duties on fuels by Rs 9.5 per litre, reducing the pressure on the common man and input costs. It has also taken other measures like banning or containing exports of food products like wheat and sugar.Das said it is not for him to speculate or comment on what the exact measures can be."It is for the government to decide and I am sure they will decide. If and when there is a requirement, they will take the steps," he said.It can be noted that in a televised statement before the press conference on Wednesday, Das also pitched for a reduction in value-added tax (VAT) levied by the state governments, saying there has been a significant moderation in urban households' inflation expectations after the Centre's excise duty cuts."...further reduction of State VATs on petrol and diesel across the country can certainly contribute to softening of the inflationary pressures as well as expectations," Das said.Meanwhile, on the vexed issue of cryptocurrencies, where the RBI has been stridently opposing the introduction of any unregulated and private crypto instruments, Das said the central bank will await the discussion paper, which the government has announced to come up with shortly.He said there is a constant dialogue between the RBI and the government on all issues, and this includes cryptocurrencies as well.Deputy Governor T Rabi Sankar said the RBI will implement the government announcement on the introduction of the central bank digital currency by the end of the fiscal."The process of introduction will be gradual so that there is no disruption in the banking system or the financial system," Sankar said.—PTI

Reserve Bank 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.

Govt mindful of inflation situation, says RBI Guv Das

Reserve Bank 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.



Islamabad: Former Pakistan Prime Minister and Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan has asserted that the party's future strategy will be decided on Sunday in the protest against inflation.Chairing a meeting of his party spokespersons, the former Prime Minister said that the future course of action will be decided along with the nation in today's protest.A day earlier, PTI Chairman announced that he would share his future course of action in his party's nationwide protest, which will start today, Geo News reported. "Oppression and force cannot stop the people from raising their voices," he added.In the meeting, the PTI Chairman congratulated his party's members, especially former Energy Minister Hammad Azhar, on the possibility of Pakistan's removal from the Financial Action Force (FATF) grey list. Talking about the rising prices in the country, Khan said that the PTI shielded the nation from global inflation, according to Geo News."The current government does not care about the people or the future of the country," he said, adding that the "situation will be out of control if the economy was destabilized."Khan further claimed that the "coalition government is putting the future of the nation at stake just to save themselves." He also alleged that the government is destroying the institutions to keep itself in power.Former Information Minister Fawad Chaudhry called the people belonging to big cities, including Multan, Faisalabad, Rawalpindi, Islamabad, Lahore, Karachi and Peshawar to protest against "high inflation and lawlessness".Taking to Twitter, Fawad asked people to protest at Shah Abbas Chowk in Multan, Ghanta Ghar Chowk in Faisalabad, Commercial Market in Rawalpindi, F-9 Park in Islamabad, Liberty Chowk in Lahore, Shahrae Qaideen in Karachi, reported Geo News.Last month Khan had called off the long march in Islamabad fearing "bloodshed" after clashes in the federal capital had led to the death of three people, including two PTI workers, News reported.&nbsp;—ANI

 Former Pakistan Prime Minister and Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan has asserted that the party's future strategy will be decided on Sunday in the protest against inflation.

Imran Khan To Announce PTI's Future Strategy In Inflation Protest

New Delhi :&nbsp;Retail inflation dropped marginally to 7.01 per cent in June mainly due to slight easing in food prices, though it still remained above the Reserve Bank's comfort level. The consumer price index (CPI) based inflation stood at 7.04 per cent in May and 6.26 per cent in June 2021. Inflation in the food basket in June 2022 was 7.75 per cent, compared to 7.97 per cent in the preceding month, as per the National Statistical Office (NSO) data. The RBI has been asked to ensure that inflation remains at 4 per cent with a margin of 2 per cent on either side. The retail inflation is ruling above the RBI's upper tolerance limit of 6 per cent since January 2022. (PTI)

Retail inflation dropped marginally to 7.01 per cent in June mainly due to slight easing in food prices, though it still remained above the Reserve Bank's comfort level.

Retail inflation eases marginally to 7.01 pc in June

New Delhi :&nbsp;The Congress on Wednesday attacked the government over rising prices and unemployment and asked for the steps taken to bring relief to the common Indian.Addressing a press conference here, Congress spokesperson Gaurav Vallabh said, "The BJP has brought about a doom with 7s -- retail Inflation is at 7.01 per cent, unemployment is at 7.8 per cent and Rupee has depreciated 7 per cent in the last six months vs the US dollar. While these are worrying data points, the BJP government is in deep slumber."He said that the government is intentionally looking away while the commoners suffer day in and day out. While on one hand the income is decreasing and people are losing jobs, inflation is giving a killer blow, Vallabh said.The Congress spokesperson alleged that in the last eight years of the government the focus of the BJP has been on polarisation and disharmony whereas distressing issues such as rising inflation, unemployment and depreciating Rupee are nowhere in its agenda."The country is witnessing the highest unemployment in the last 45 years. Various reports have time and again highlighted the fact that 97 per cent Indians got poorer in just one year between 2020 and 2021. Unemployment rate has gone up to 7.8 per cent with a loss of 25 lakh jobs in June 2022 among the salaried employees, as per the CMIE, " said Vallabh."Retail inflation was recorded at 7.01 per cent in June 2022 as per the Consumer Price Index (CPI) data released on Tuesday and 25 lakh salaried people lost jobs in June 2022, startups have been made to fire more than 11,000 employees in 2022, Rupee at an all-time low of 79.66 against the US Dollar, GDP growth stagnant -- these portray the sorry state of macroeconomic affairs," the Congress spokesperson added. --- IANS&nbsp;

The Congress on Wednesday attacked the government over rising prices and unemployment and asked for the steps taken to bring relief to the common Indian.

 Inflation & unemployment high, govt in deep slumber: Cong

New Delhi:&nbsp;&nbsp;Rajya Sabha proceedings were adjourned for the day on Wednesday after the opposition continued to clamour for a discussion on inflation, hike in GST rates, Agnipath scheme among other issues. Soon after the House assembled in the morning, noted former athlete P.T. Usha took oath as Member.Chaos reigned after Leader of Opposition Mallikarjun Kharge and other opposition members demanded a discussion under rule 267. Kharge said that inflation has affected everyone as prices of all essential food items, LGP and others haveskyrocketed.When the pandemonium continued unabated, the House was adjourned till 2 p.m.After reassembling after the adjournment, Deputy Chairman Harivansh called for discussion on the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Amendment Bill, 2022 tabled by External Affairs Minister S Jaishankar on Tuesday.At this, the opposition parties continued with the protest despite requests from the Deputy Chairman they refused to resume their seats and let the House function.Realising that his repeated pleas were falling on deaf ears, the deputy chairman adjourned the House for the day.The House has been witnessing continuous disruptions from Monday, the first day of monsoon session.Three days of the session were completely washed out amid opposition’s protest seeking a discussion over hike in GST, price rise and other issues.— IANS

Rajya Sabha proceedings were adjourned for the day on Wednesday after the opposition continued to clamour for a discussion on inflation, hike in GST rates, Agnipath scheme among other issues. 

Amid Oppn protest, Rajya Sabha adjourned for day

Rome:&nbsp;Italy's economy grew 4.6 per cent in the second quarter of this year (Q2) compared to the same period a year ago, the government's statistics body reported.However, that figure was dampened by a significant increase in prices, Xinhua news agency quoted the National Statistics Institute (ISTAT) as saying.Nevertheless, the 4.6 per cent economic growth in Q2 (April-June) was stronger than previous year-on-year growth estimates of 4.3 per cent for the period.Compared to the first quarter of the year, the economy grew 1.0 per cent, ISTAT said.The positive growth rate for Q2 marks the sixth consecutive quarter in which the economy has shown positive growth, starting with the first quarter of 2021 when the economy began to emerge from the economic shadow cast by the coronavirus pandemic.Meanwhile, economic growth over the first half of the year was 3.4 per cent. This figure is higher than the 2.8 per cent estimate for this year as a whole, published last month in ISTAT's 2022-2023 economic outlook.The growth rate was pushed higher by domestic demand, which compensated for a slight drop in exports to other countries during the second quarter.However, the positive growth rate was offset by higher prices.ISTAT also reported on Friday that prices as measured by a basket of representative goods were 7.9 per cent higher in July of this year than in July 2021, slightly lower than the 8.0 per cent year-on-year increase from June, although prices in July were still 0.4 per cent above June levels.Higher energy costs are the main driving force behind price rises, ISTAT said. In July, prices of energy goods were 42.9 per cent higher than in July 2021, although that increase was lower than the 48.7 per cent increase between June 2022 and June 2021.Energy prices began surging earlier this year due to the impact of the ongoing war between Russia and Ukraine.Over the first seven months of this year, prices have climbed 6.7 per cent compared to the same period last year. This is the highest inflation rate Italy has seen since the creation of the euro currency nearly 24 years ago.Other economic sectors showed smaller increases: prices for recreational, cultural, and personal care services rose by 4.6 per cent in July, while prices for processed food rose 9.6 per cent, and transportation costs rose 8.9 per cent.All these sectors have been directly impacted by higher fuel prices.Economists have said that rising prices contribute to economic growth when it is measured by value, as is the case with ISTAT's economic growth measurements, although this also means the buying power of the currency.Despite the day's mixed economic news, the Italian Stock Exchange gained 2.2 per cent on Friday, finishing the month 5.1 per cent higher.—IANS

Italy's economy grew 4.6 per cent in the second quarter of this year (Q2) compared to the same period a year ago, the government's statistics body reported.

Italian economy sees 4.6% growth in Q2, despite high inflation

<p style="margin-bottom: 10px; outline: 0px; color: rgb(51, 51, 51); font-size: 18px; line-height: 32px; text-align: justify; word-break: break-word; font-family: Roboto, sans-serif; white-space: normal;">New Delhi:&nbsp;Congress MP Manish Tewari on Monday said that during the past 14 months, the inflation rate in the county has been in double digit making it the highest in 30 years.<p style="margin-bottom: 10px; outline: 0px; color: rgb(51, 51, 51); font-size: 18px; line-height: 32px; text-align: justify; word-break: break-word; font-family: Roboto, sans-serif; white-space: normal;">Initiating a discussion on prise rise under Rule 193 in the Lok Sabha, he alleged that one per cent of the people are controlling 77 per cent of the nation wealth.<p style="margin-bottom: 10px; outline: 0px; color: rgb(51, 51, 51); font-size: 18px; line-height: 32px; text-align: justify; word-break: break-word; font-family: Roboto, sans-serif; white-space: normal;">GST has been increased on daily items like rice, curd, paneer and unfortunately, even the children have not been spared as stationary prices have also gone up. He spoke in Hindi and concluded the debate with a Punjabi couplet saying that since the demonetisation, the country's economy is on a downward trajectory.<p style="margin-bottom: 10px; outline: 0px; color: rgb(51, 51, 51); font-size: 18px; line-height: 32px; text-align: justify; word-break: break-word; font-family: Roboto, sans-serif; white-space: normal;">Defending the government, BJP MP Nishikant Dubey said in the neighbouring countries like Sri Lanka, Bangladesh and Bhutan, the inflation is rising and so is unemployment. <p style="margin-bottom: 10px; outline: 0px; color: rgb(51, 51, 51); font-size: 18px; line-height: 32px; text-align: justify; word-break: break-word; font-family: Roboto, sans-serif; white-space: normal;">"Despite such a bad situation in India, the poor are still getting two-time meal for free.. should not the Prime Minister be thanked for it as the World Bank has given funds to various countries like Egypt."<p style="margin-bottom: 10px; outline: 0px; color: rgb(51, 51, 51); font-size: 18px; line-height: 32px; text-align: justify; word-break: break-word; font-family: Roboto, sans-serif; white-space: normal;">He also attacked the Trinamool Congress over the cash recovered from former state minister Partha Chatterji's aide and Jharkhand Congress MLAs who were arrested in Bengal.<p style="margin-bottom: 10px; outline: 0px; color: rgb(51, 51, 51); font-size: 18px; line-height: 32px; text-align: justify; word-break: break-word; font-family: Roboto, sans-serif; white-space: normal;">—IANS

Congress MP Manish Tewari on Monday said that during the past 14 months, the inflation rate in the county has been in double digit making it the highest in 30 years.

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