Retail inflation is on course to fall below 6 per cent in March and close to 5 per cent by August, helping the central bank navigate the coronavirus pandemic with lower interest rates, say SBI analysts.
Wholesale prices-based inflation accelerated to a 10-month high of 3.10 per cent in January mainly due to costlier food articles, particulary onion and potato, official data showed on Friday.
On a sequential basis, the expenses on manufactured products category, which constitute over 64 per cent of the WPI's total weightage, increased to 0.34 per cent from (-)0.25 per cent.
The data released shows that higher food prices, particularly of wheat and flour, pulses, sugar, jaggery and edible oil, have been the largest driver of overall inflation in January.
The classical economic theory of high inflation leading to the gross domestic product (GDP) growth will not be applicable to India even if the retail inflation has touched 7.35 per cent, since the price rise is led by highly volatile food and vegetables and is a short-term spike.
The retail inflation is on a 5-year high level of 7.4% as of December 2019 majorly driven by the inflation in the food price index, which also stood at 14.12%. A look at key statistics and what holds in future in terms of RBI's rate cut and probable inflation levels in the coming months.
People of India are more concerned about rising inflation and unemployment and not much about the Citizenship Amendment Act, IANS-CVOTER State of the Nation Poll 2020 has found.
Wholesale prices based inflation rose to 0.58 per cent in November, as against 0.16 per cent in October due to increase in prices of food articles. The annual inflation, based on the monthly wholesale price index (WPI), was at 4.47 per cent during the same month a year ago (November 2018).
The revised rates of telecom operators will add to the inflation rate in the country. Reserve Bank Governor Shaktikanta Das said on Thursday.
The Pakistan Bureau of Statistics (PBS) reported on Wednesday that inflation, measured by the Consumer Price Index (CPI), edged up by 1.3 per cent over the previous month after the PBS revised its calculation methodology by setting the new base year 2015-16 instead of the previous 2007-08 financial year.
The minister referred to Chowdhury's earlier remarks against the Prime Minister and the Home Minister in which he had called them "infiltrators" on the issue of National Register of Citizen (NRC).
Employees in India are expected to see 9.2 per cent salary growth in 2020, highest in Asia, but inflation may play a spoiler as real-wage salaries in the country is anticipated to be just 5 per cent, a report said on Monday.
Prime Minister Imran Khan on Friday said that the current issue of inflation in Pakistan was due to the flawed economic policies of the previous government and the cash-strapped nation would overcome the problem soon.
Wholesale inflation slipped to about three-and-a-half-year low of 0.16 per cent in October on account of a decline in prices of manufactured goods though food products remained dearer, government data showed on Thursday.
The study, which was published by Gallup and Gilani Pakistan on Tuesday, said 53 per cent of respondents believe the country's economy, specifically increasing inflation, is the biggest problem facing the country.
India's Consumer Price Index (CPI) for September stands at 3.99 per cent as compared to 3.21 per cent in August. September's CPI Food price inflation is 5.11% vs 2.99% in August. Fuel, Light inflation is at -2.18% vs -7.1% in August. Clothing and Footwear Inflation stands at 0.96% vs 1.23% in August. August Consumer Price Index (CPI) has been revised to 3.28% vs 3.21%.
Finance Minister Nirmala Sitharaman on Saturday said inflation is under control and there is a clear sign of revival of industrial production.
According to the Central Statistics Office (CSO) data, the jump in the retail inflation based on Consumer Price Index (CPI) was mainly due to rise in prices of kitchen items like vegetables, meat and fish.
Wholesale price-based inflation slipped to 3.07 per cent in April on cheaper fuel and manufactured items, even as prices of food articles remained high, according to an official data released Tuesday.
The consumer price index (CPI)-based retail inflation was at 2.57 per cent in February this year. On yearly basis, it was 4.28 per cent in March 2018.
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