Inflation to six-month high at 6.10% in August
New Delhi, September 17, 2013: Inflation in onions skyrocketed to
244.62% in August against already high 119.4% in the previous month,
jacking up the the rate of wholesale price rise to a six-month high of
6.10% from 5.8% in July, official data showed today.
Ironically, onion prices can't be brought down by interest rate policy,
but it is all set to desist new RBI governor Raghuram Rajan from easing monetary
stance of the central bank in its mid-quarter review later this month
even as economic growth crashed to a four-year low of 4.4% in the first
quarter of 2013-14, economists said.
On the other hand, inflation in manufactured products further fell to
1.90% from 2.81% despite depreciation of the rupee increasing imported
inflation. This amply showed that demand in the Indian as well as global economy
remained subdued. Fuel inflation inched up to 11.34% from 11.31% even as
the government raised petrol prices by 70 paise a litre and diesel 50
paise a litre from the midnight July, 31. At a time when agriculture is the primary hope in the economy, food
inflation surged to a three-year high of 18.2% in August against 11.9%
in the previous month. Source: Agencies
WPI inflation rises to 5-month high of 5.79% in July
New Delhi, August, 2013: Inflation based on the Wholesale Price Index
(WPI) rose to
5.79 percent in July compared to 4.86 percent in June due to rising food
prices and costlier imports on account of continuous depreciation in
rupee against the US dollar. During the corresponding month of the previous year WPI inflation was at
7.52 percent. Headline inflation in the food articles category climbed for the third
consecutive month to double digits at 11.91 percent as against 9.74 percent in June.
Onion prices went up by 145 percent during the month on an annual basis.
Reacting to the WPI number for July, Planning Commission Deputy Chairman
Montek Singh Ahluwalia said that the inflation will remain in range of 5
to 6 percent by March 2014. Data released on Monday, however, showed retail inflation eased to 9.64
percent in July from 9.87 percent in the preceding month as prices of
cereal, pulses, fruits and sugar softened.
RBI keeps a close watch on the inflation data to decide its monetary
policy. However, in its first quarter monetary policy in the previous month, RBI
had kept its key policy rates unchanged to stablise the rupee and contain the escalating current account deficit.
Besides, the industry for long has been demanding for a cut in the
policy rate by the RBI to thrust investment and spur economic activities.
Build up inflation rate in the financial year so far was 3.12 percent
compared to 2.98 percent in the corresponding period of the previous year.
A global sell-off has made the Indian rupee the worst-performing emerging Asian currency so far in 2013.
It hit an all-time low of 61.80 per dollar last week and is down almost
10 percent against the dollar so far this year. India is also one of the largest importers of crude oil and a pick up in
prices through last month coupled with the weak currency added to wholesale prices, which just a few months ago had fallen to below 5 percent.
Inflation rises to 4.86% in June
New Delhi, July 16, 2013 (PTI): Snapping declining
trend of four months, inflation rose to 4.86 per cent in June as kitchen items like onion, rice and other cereals became
costlier, adding to the woes of the government struggling to arrest the
falling value of rupee that is putting pressure on prices. Rising inflation will also have a bearing on the Reserve Bank's first quarter
monetary policy review on July 30. Inflation based on the Wholesale
Price Index (WPI) had stood at 4.70 per cent in May. Food inflation rose to 9.74 per cent, driven by price rise in onion,
cereals and rice in June, against 8.25 per cent in the previous month,
as per the Industry Ministry data.Vegetable prices went up by 16.47 per cent from 4.85 per cent in May. Inflation in onion shot up by 114 per
cent in June as against 97.40 per cent in May. Inflation in the
manufactured items category, however, declined to 2.75 per cent in June
from 3.11 per cent in May.
On the possibility of interest rate cut by RBI in its forthcoming
policy, Rangarajan said: "RBI faces the difficult choice of controlling
inflation, growth needs stimulus, but external situation remains a concern. RBI will take all these three factors into account. " The value
of the rupee, which touched all time low of 61.21 to a dollar earlier
this month, is fueling inflation, especially in the prices of petroleum
products. Government as well as the RBI have been taking steps to strengthen rupee. The Consumer Price Index (CPI) based retail inflation
for June too had also inched up marginally
Inflation hits 41-month low in April at 4.89 per cent
May 14, 2013
(Reuters): India's headline inflation fell below 5 per cent in
April, putting it back in the Reserve Bank's comfort zone for the
first time in more than three years and fuelling market hopes for
more monetary easing to revive
the economy's pedestrian growth rate. April's reading of 4.89 per
cent was the lowest since November 2009 and well below the 5.50 per
cent estimated by analysts in a Reuters poll. The wholesale price
index, India's main inflation measure, rose an annual 5.96 per cent
The number sparked gains in bond markets, which had
already rallied since last week on expectations that easing
inflation would lead the RBI to cut interest rates further. "It
is a frenzy. The market is pricing in a rate cut," said Ashish
Vaidya, head of treasury at UBS in Mumbai. Inflation was mainly
cooled by a moderation in food and fuel costs along with ebbing
demand-driven price pressures. Food inflation dropped to 6.08
per cent in April from 8.73 per cent a month ago. Fuel prices rose
8.84 per cent on the year compared with an annual rise of 10.18 per
cent in March.
Non-food manufacturing inflation, which the central
bank monitors to gauge demand-driven price pressures, slowed to 2.77
per cent in April from 3.5 per cent a month ago. "With food
prices expected to remain stable, manufacturing prices weak due to
slow growth and commodity prices stable, inflation is expected to be
on a broad downtrend for the next six months and this, we believe,
opens up room for more rate cuts," said Rahul Bajoria, Regional
Economist at Barclays Capital in Singapore. "We think there is
a possibility of as much as 75 basis points more rate cuts in the
next six months, including 25 basis points in the next policy in
June." . Source: Reuters
Retail inflation rises to 10.91% in February
NEW DELHI, March 13, 2013: Retail inflation moved up for
the fifth consecutive month to 10.91 per cent in February -- remaining
in the double-digit terrain for third month in a row -- on account of
higher prices of vegetables, edible oil, cereals and protein-based items.
It was 10.79 per cent in January. The inflation crossed the doubled digit mark in December at 10.56 per cent, against 9.90 per cent in November.
The vegetables basket in February recorded the highest inflation of
21.29 per cent among all the constituents that make the Consumer Price
Index (CPI), according to data released today. That was followed by cereals wherein inflation was 17.04 per cent. Egg,
meat and fish became costlier by 15.72 per cent during the month. Inflation in oils and fats segment stood at 14.56 per cent.
Besides, pulses became dearer by 12.39 per cent and sugar turned more
expensive by 12.10 per cent on an annual basis. Clothing and footwear witnessed 10.87 per cent increase in prices during
the month. In urban areas, retail inflation rose to 10.84 per cent in February from
10.73 per cent in the previous month. The CPI for rural population increased to 11.01 per cent during the month from 10.88 per cent in January.
The data for wholesale price index (WPI)-based inflation is expected on
Thursday. The WPI figures for January stood at 6.62 per cent, much higher than RBI's comfort level of 5-6 per cent. Source: The Times of India
India's consumer price inflation rises to 10.79 percent
New Delhi, February 12,2013 (IANS): Inflation based on the consumer price index
(CPI) rose to 10.79 percent in January as compared to 10.56 percent in
the previous month, on account of a sharp increase in prices of vegetables, sugar and oils and fats government data showed Tuesday.
Vegetables became costlier by 26.11 percent. Sugar became costlier by 12.95
Prices of oil and fats surged by 14.98 percent and cereals became
costlier by 14.90 percent. Prices of pulses jumped by 12.76 percent.The price rise was sharper in rural areas. The Consumer Price
Index-based inflation for rural areas increased 10.88 percent in January
as compared to 10.74 percent in the previous month. However, for urban areas consumer price inflation grew by 10.73 percent
in the month under review as compared to 10.42 percent in the previous month.
Vegetables became costlier by 25.35 percent year-on-year in rural areas
while in urban areas the increase was 27.81 percent.Prices of oils and fats increased by 16.03 percent in rural areas while
it increased by 12.82 percent in urban areas.Sugar prices increased by 13.13 percent in rural areas, while it
increased by 12.40 percent in urban areas. The wholesale price index (WPI)-based inflation had moderated to a
three-year low of 7.18 percent in December on the softening in the price
rise of fuel and manufactured goods. The WPI-based inflation, the country's main indicator of price rise, was
at 7.24 percent in November and 7.74 percent in corresponding month of
previous year. This was the lowest rate of inflation since December 2009.