The first six months were full of surprises: Inflation, the biggest selloff in bonds in four decades, a plunge in tech stocks rarely matched in history, and the implosion of crypto, the Wall Street Journal reported.
The year-on-year increase was far higher than in May, when prices rose 6.8 percent, a level that was itself the highest one-month increase since Italy adopted the euro currency in 1999, Xinhua news agency quoted the ISTAT as saying in a report.
The global economic outlook is clouded by the ongoing war in Europe and the pace of monetary policy tightening by central banks in response to mounting inflationary pressures, Reserve Bank of India (RBI) report said.
The increase was in line with analysts' expectations and signals no quick end to the cost-of-living squeeze facing millions in Britain.
The six-member Monetary Policy Committee (MPC), headed by Das, had announced its decision on June 8. It was the second consecutive hike in repo rate.
People's need to get away on vacations continues to stay strong even in the wake of high inflation and an anticipated global slowdown due to lockdowns in China as well as the ongoing conflict in Europe.
RBI Governor Shaktikanta Das said that the central bank in March felt that economic activity was above the pre-pandemic levels and decided to shift focus to curbing inflation.
The Dow Jones Industrial Average lost 2.4% while the Nasdaq composite sank 4.1%.
Federal Reserve Interest Rate Hike Decision: Federal Reserve chair Jerome Powell will announce the decision of a two-day policy meeting on Wednesday.
Rising prices of food items and crude oil pushed the WPI inflation to a new high of 15.08 per cent in May.
Equity benchmarks had another rough day on Monday as Sensex crashed 1,457 points and Nifty tumbled more than 400 points to settle at 15,774.
When inflation remains above the tolerance level for a long time, it impacts the value of savings, thus decreasing the purchasing power of the money.
High inflation has also forced the Federal Reserve into what will likely be the fastest series of interest rate hikes in three decades.
The surprise announcement Thursday will end an extended period of extremely low-interest rates and face complications from weakening prospects for economic growth.
RBI Governor Shaktikanta Das said the upside risk to inflation persists and the recent spike in tomato prices would fuel food inflation.
RBI had in May hiked the repo rate by 40 basis points (bps) to 4.40 per cent amidst rising inflation concerns. This was the first hike after August 2018.
A rise in prices 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.
Figures will increase pressure on govt to mitigate a cost-of-living crisis that economists forecast will produce the biggest drop in living standards since 1950s.
The 3-day-long court-monitored videography survey of the Kashi Vishwanath Temple-Gyanvapi Mosque complex in Varanasi concluded on May 16.
The WPI-based inflation was 14.55 per cent in March and 10.74 per cent in April last year.
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