In a bid to curb their rising prices, the Indian government has set a floor price on the exports of onions. Media reports suggest that the minimum export price for onions has been kept at 800 dollars per tonne till the end of 2023.

Govt sets minimum export prices for onions at $800 per tonne

After notifying the federal government and the Election Commission, the Supreme Court on Monday postponed the election case until November 2. While considering various petitions regarding the postponement of general elections for longer than ninety days, Chief Justice Qazi Faez Isa noted that it was "not possible" to satisfy the ninety-day limit.

Pakistan Top Court adjourns election delay case until November 2

During an election year in Argentina, it can be difficult to concentrate on anything other than economics. The severe financial prognosis has once again dominated this year's presidential campaign, with an annual inflation rate that has surpassed 138 percent and a currency that has experienced a sharp decline in value.

Argentina Presidential Polls: Economic situation dire

Inflation in Argentina has jumped to its highest level in three decades, just a week before the country elects its new president. Compared to a year ago, inflation has accelerated to 138.3%. That's the highest level since the early 1990s when Argentina was exiting hyperinflation.

Record high inflation in Argentina

India's retail inflation has seen a dip, reaching a three-month low in September, primarily due to softer vegetable prices. However, it still remains above the Reserve Bank of India's (RBI) target of 4 per cent, which the central bank has emphasised as crucial before considering a rate cut.

According to official data, the annual retail inflation, measured by the Consumer Price Index, registered at 5.02 per cent in September, down from the previous month's 6.83 per cent. This figure was also lower than the expectations of a Reuters poll, which had forecasted a rate of 5.50 per cent. In June, retail inflation had stood at 4.81 per cent.

Food inflation, a major contributor to the overall consumer price basket, recorded a notable decrease from 9.94 per cent in August to 6.56 per cent in September. These numbers were encouraging but remained above the upper tolerance band of 2 per cent-6 per cent set by the RBI.

Vegetable prices, which had been a significant driver of inflation in recent months, saw a substantial reduction, dropping to 3.39 per cent in September from 26.14 per cent in the previous month. Similarly, cereal inflation also eased from 11.85 per cent in August to 10.95 per cent in September.

"The central bank is unlikely to shift away from its hawkish rhetoric for as long as there remains a significant risk of a renewed pick-up in food prices," Reuters quoted Thamashi De Silva of Capital Economics as saying. She further noted that despite the drop in headline inflation, the threat of food inflation persisted due to India's dry monsoon season.

In response to rising prices, the Indian government increased the cooking gas subsidy for low-income households from 200 rupees per cylinder in August to 300 rupees in an effort to mitigate inflation.

Reuters cited Finance Minister Nirmala Sitharaman, who also voiced concerns about global and regional uncertainties, stating that they might keep inflationary pressures elevated in the coming months. She emphasized the government's pre-emptive measures to control food inflation and their potential to alleviate price pressures in the market.

Core inflation, which excludes volatile food and energy prices, was estimated at 4.5 per cent in September, a slight decrease from 4.6 per cent-4.9 per cent in August, as per two economists, though the Indian government does not officially release core inflation figures.

However, there are still concerns about rising oil prices, hovering above $85 a barrel, and the recent Israeli-Palestinian conflict, which could further impact energy prices and overall inflation.

Madan Sabnavis, an economist at the Bank of Baroda, told Reuters that the RBI would closely monitor the impact of the El Nino weather phenomenon on crop output in Asia and the evolving situation in the Middle East to make future decisions on interest rates.

Meanwhile, prices for some food items like pulses and spices continued to rise, posing a challenge for inflation control. The RBI is expected to maintain its repo rate unchanged until June 2024, Sabnavis predicted.

(Inputs from Reuters)

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India's retail inflation has seen a dip, reaching a three-month low in September, primarily due to softer vegetable prices. However, it still remains above the Reserve Bank of India's (RBI) target of 4 per cent, which the central bank has emphasised as crucial before considering a rate cut.

India's retail inflation has seen a dip, reaching a three-month low in September, primarily due to softer vegetable prices. However, it still remains above the Reserve Bank of India's (RBI) target of 4 per cent, which the central bank has emphasised as crucial before considering a rate cut. According to official data, the annual retail inflation, measured by the Consumer Price Index, registered at 5.02 per cent in September, down from the previous month's 6.83 per cent. This figure was also lower than the expectations of a Reuters poll, which had forecasted a rate of 5.50 per cent. In June, retail inflation had stood at 4.81 per cent. Food inflation, a major contributor to the overall consumer price basket, recorded a notable decrease from 9.94 per cent in August to 6.56 per cent in September. These numbers were encouraging but remained above the upper tolerance band of 2 per cent-6 per cent set by the RBI. Vegetable prices, which had been a significant driver of inflation in recent months, saw a substantial reduction, dropping to 3.39 per cent in September from 26.14 per cent in the previous month. Similarly, cereal inflation also eased from 11.85 per cent in August to 10.95 per cent in September. "The central bank is unlikely to shift away from its hawkish rhetoric for as long as there remains a significant risk of a renewed pick-up in food prices," Reuters quoted Thamashi De Silva of Capital Economics as saying. She further noted that despite the drop in headline inflation, the threat of food inflation persisted due to India's dry monsoon season. In response to rising prices, the Indian government increased the cooking gas subsidy for low-income households from 200 rupees per cylinder in August to 300 rupees in an effort to mitigate inflation. Reuters cited Finance Minister Nirmala Sitharaman, who also voiced concerns about global and regional uncertainties, stating that they might keep inflationary pressures elevated in the coming months. She emphasized the government's pre-emptive measures to control food inflation and their potential to alleviate price pressures in the market. Core inflation, which excludes volatile food and energy prices, was estimated at 4.5 per cent in September, a slight decrease from 4.6 per cent-4.9 per cent in August, as per two economists, though the Indian government does not officially release core inflation figures. However, there are still concerns about rising oil prices, hovering above $85 a barrel, and the recent Israeli-Palestinian conflict, which could further impact energy prices and overall inflation. Madan Sabnavis, an economist at the Bank of Baroda, told Reuters that the RBI would closely monitor the impact of the El Nino weather phenomenon on crop output in Asia and the evolving situation in the Middle East to make future decisions on interest rates. Meanwhile, prices for some food items like pulses and spices continued to rise, posing a challenge for inflation control. The RBI is expected to maintain its repo rate unchanged until June 2024, Sabnavis predicted. (Inputs from Reuters) WATCH WION LIVE HERE

India's retail inflation drops to three-month low in September: Report

India's retail inflation has taken a welcome dip, falling from 6.83% in August to 5.02% in September. The drop can be attributed to a substantial easing in food prices, which had surged to nearly 10% in the previous month.

India inflation dips tp 5.02% | India's retail inflation sees significant September dip | WION

European Central Bank (ECB) President Christine Lagarde has voiced confidence in the ECB's ability to achieve its target of bringing inflation back down to 2 per cent. In an interview with French newspaper La Tribune Dimanche, Lagarde also expressed optimism regarding Europe's gas reserves situation, citing various factors contributing to her positive outlook.

Last month, the ECB implemented a record-high key interest rate of 4 per cent, signalling a strong commitment to addressing inflationary pressures. Lagarde emphasised that the sustained levels of the key ECB interest rates would play a crucial role in facilitating the timely return of inflation to the desired target.

"The key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target," Reuters quoted Lagarde as saying during the interview conducted on October 2.

Despite acknowledging that inflation was currently on a significant downward trajectory, Lagarde remained optimistic about the short-term economic outlook. She cited several reasons for her confidence, including ongoing economic reforms taking place in Europe and notable improvements in the region's gas reserves situation.

Lagarde highlighted the importance of structural reforms being implemented in the European economy, underscoring the positive impact they could have on future economic performance.

In addition, she drew attention to the remarkable progress made in replenishing gas reserves, surpassing 90 per cent by September 2023. This development has bolstered Europe's preparedness for the upcoming winter season, providing a sense of confidence and security.

"This allows us to look towards the coming winter, if not calmly, then at least with a lot more confidence," Reuters noted Lagarde’s concluding remarks, emphasising the improved outlook for Europe's gas reserves situation.

(With inputs from Reuters)

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European Central Bank (ECB) President Christine Lagarde has voiced confidence in the ECB's ability to achieve its target of bringing inflation back down to 2 per cent.

European Central Bank (ECB) President Christine Lagarde has voiced confidence in the ECB's ability to achieve its target of bringing inflation back down to 2 per cent. In an interview with French newspaper La Tribune Dimanche, Lagarde also expressed optimism regarding Europe's gas reserves situation, citing various factors contributing to her positive outlook. Last month, the ECB implemented a record-high key interest rate of 4 per cent, signalling a strong commitment to addressing inflationary pressures. Lagarde emphasised that the sustained levels of the key ECB interest rates would play a crucial role in facilitating the timely return of inflation to the desired target. "The key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target," Reuters quoted Lagarde as saying during the interview conducted on October 2. Despite acknowledging that inflation was currently on a significant downward trajectory, Lagarde remained optimistic about the short-term economic outlook. She cited several reasons for her confidence, including ongoing economic reforms taking place in Europe and notable improvements in the region's gas reserves situation. Lagarde highlighted the importance of structural reforms being implemented in the European economy, underscoring the positive impact they could have on future economic performance. In addition, she drew attention to the remarkable progress made in replenishing gas reserves, surpassing 90 per cent by September 2023. This development has bolstered Europe's preparedness for the upcoming winter season, providing a sense of confidence and security. "This allows us to look towards the coming winter, if not calmly, then at least with a lot more confidence," Reuters noted Lagarde’s concluding remarks, emphasising the improved outlook for Europe's gas reserves situation. (With inputs from Reuters) WATCH WION LIVE HERE

ECB's Lagarde expresses confidence in 2pc inflation target and Europe's gas reserves

The Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday that the monetary policy committee (MPC) has opted to maintain the policy repo rate at 6.50 per cent, marking the fourth consecutive time the rate remains unchanged.

In his policy statement, The Indian Express quoted Das as saying, "After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, RBI's Monetary Policy Committee decided unanimously to keep the Policy Repo Rate unchanged at 6.5 per cent."

He emphasised the importance of both macroeconomic stability and inclusive growth, asserting that the combination of policies implemented in recent years, despite facing numerous and unprecedented challenges, had contributed to the achievement of stability in both macroeconomics and finance.

Das noted that India has transitioned from the twin balance sheet stress of a decade ago to a twin balance sheet advantage, with both banks and corporate demonstrating healthier financial positions.

Reacting to the RBI's decision to continue with the rate pause, Adhil Shetty, CEO of Bankbazaar.com, said, "The Reserve Bank of India expectedly kept the policy rates paused in its monetary policy review for October.&nbsp;This is welcome, although inflation is expected to remain elevated for longer than anticipated."

According to Shetty, interest rates and inflation are moving in a positive direction with limited upward risks. Additionally, he noted that the central bank intends to maintain control over growth expectations through various monetary policy tools.

This decision comes as the RBI continues to grapple with keeping retail inflation within the target of 4 per cent. While India's retail inflation eased to 6.83 per cent in August, Das acknowledged that it remains above the upper limit of RBI's tolerance band, highlighting concerns about inflation.

While the RBI governor anticipates a potential easing of retail inflation in September, the decline in kharif sowing poses a potential threat. The RBI has maintained its CPI-based inflation forecast for FY24 at 5.4 per cent.

In terms of GDP, the RBI has retained its forecast, expecting real gross domestic product (GDP) to grow at 6.5 per cent for the fiscal year 2023-24 (FY24).

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The Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday that the monetary policy committee (MPC) has opted to maintain the policy repo rate at 6.

The Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday that the monetary policy committee (MPC) has opted to maintain the policy repo rate at 6.50 per cent, marking the fourth consecutive time the rate remains unchanged. In his policy statement, The Indian Express quoted Das as saying, "After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, RBI's Monetary Policy Committee decided unanimously to keep the Policy Repo Rate unchanged at 6.5 per cent." He emphasised the importance of both macroeconomic stability and inclusive growth, asserting that the combination of policies implemented in recent years, despite facing numerous and unprecedented challenges, had contributed to the achievement of stability in both macroeconomics and finance. Das noted that India has transitioned from the twin balance sheet stress of a decade ago to a twin balance sheet advantage, with both banks and corporate demonstrating healthier financial positions. Reacting to the RBI's decision to continue with the rate pause, Adhil Shetty, CEO of Bankbazaar.com, said, "The Reserve Bank of India expectedly kept the policy rates paused in its monetary policy review for October. This is welcome, although inflation is expected to remain elevated for longer than anticipated." According to Shetty, interest rates and inflation are moving in a positive direction with limited upward risks. Additionally, he noted that the central bank intends to maintain control over growth expectations through various monetary policy tools. This decision comes as the RBI continues to grapple with keeping retail inflation within the target of 4 per cent. While India's retail inflation eased to 6.83 per cent in August, Das acknowledged that it remains above the upper limit of RBI's tolerance band, highlighting concerns about inflation. While the RBI governor anticipates a potential easing of retail inflation in September, the decline in kharif sowing poses a potential threat. The RBI has maintained its CPI-based inflation forecast for FY24 at 5.4 per cent. In terms of GDP, the RBI has retained its forecast, expecting real gross domestic product (GDP) to grow at 6.5 per cent for the fiscal year 2023-24 (FY24). WATCH WION LIVE HERE

RBI holds repo rate steady at 6.5 per cent for the fourth time, inflation remains a concern

Latest data suggests that inflation in the Euro zone fell to its lowest level in two years in September. Consumer prices in the euro zone rose by 4.3% in September, the slowest pace since October 2021, from 5.2% in august.

Big fall in Euro zone inflation

Takehiko Nakao, the former Asian Development Bank chief, has raised concerns about the Japanese yen's declining value, suggesting that Japan may need to intervene in the currency market again. Nakao also called for the Bank of Japan (BOJ) to reconsider its ultra-easy monetary policy.

In a recent interaction with Reuters, Nakao spoke about the risks associated with prolonged monetary easing, highlighting the need for a possible policy modification.

Reuters quoted Nakao as saying, "There may be views that the intervention is not imminent as the depreciation has not been so rapid compared to the last time when authorities intervened in September/October. But it's fully possible the authorities will conduct intervention in case the yen weakens further."

In the face of a weakening yen, Japan has spent over 9 trillion yen last year to stabilise the currency. The yen, currently trading around 147.77 against the dollar, has been a cause for concern, as a weaker yen can negatively impact Japan's exports and create economic instability.

Takehiko Nakao, who worked as the top currency official from August 2011 to March 2013, supervised a significant intervention in 2011 to control the yen’s strength in response to the U.S. Federal Reserve's quantitative easing. However, now that the yen is considerably weaker, Japan faces different economic challenges, such as rising import prices and increased living costs.

Nakao's concerns are echoed by investors who view prolonged monetary easing as distorting markets and hurting bank profits. A weaker yen has emerged as a result of Japan's contrast with the global trend of monetary control. Other major central banks, such as the Federal Reserve, have hiked interest rates to fight off inflation while the BOJ continues to undertake potent monetary stimulus measures.

As the BOJ concludes its two-day meeting this week, it is widely expected to maintain its yield curve control (YCC) targets at a negative 0.1 per cent for short-term interest rates and 0 per cent for the 10-year bond yield. However, Nakao, who is in talks with present policymakers, argues for a change in direction.

"In the face of ongoing headline inflation and an excessively weak yen, the BOJ may have no choice but to proceed with monetary policy normalisation, including an exit from negative rate policy and yield curve control, so as not to fall behind the curve," Nakao&nbsp; told Reuters. "Given that JGB yields remain stable and inflation is on the rise, now is the chance to tweak yield curve control."

(With inputs from Reuters)

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Takehiko Nakao, the former Asian Development Bank chief, has raised concerns about the Japanese yen's declining value, suggesting that Japan may need to intervene in the currency market again.

Takehiko Nakao, the former Asian Development Bank chief, has raised concerns about the Japanese yen's declining value, suggesting that Japan may need to intervene in the currency market again. Nakao also called for the Bank of Japan (BOJ) to reconsider its ultra-easy monetary policy. In a recent interaction with Reuters, Nakao spoke about the risks associated with prolonged monetary easing, highlighting the need for a possible policy modification. Reuters quoted Nakao as saying, "There may be views that the intervention is not imminent as the depreciation has not been so rapid compared to the last time when authorities intervened in September/October. But it's fully possible the authorities will conduct intervention in case the yen weakens further." In the face of a weakening yen, Japan has spent over 9 trillion yen last year to stabilise the currency. The yen, currently trading around 147.77 against the dollar, has been a cause for concern, as a weaker yen can negatively impact Japan's exports and create economic instability. Takehiko Nakao, who worked as the top currency official from August 2011 to March 2013, supervised a significant intervention in 2011 to control the yen’s strength in response to the U.S. Federal Reserve's quantitative easing. However, now that the yen is considerably weaker, Japan faces different economic challenges, such as rising import prices and increased living costs. Nakao's concerns are echoed by investors who view prolonged monetary easing as distorting markets and hurting bank profits. A weaker yen has emerged as a result of Japan's contrast with the global trend of monetary control. Other major central banks, such as the Federal Reserve, have hiked interest rates to fight off inflation while the BOJ continues to undertake potent monetary stimulus measures. As the BOJ concludes its two-day meeting this week, it is widely expected to maintain its yield curve control (YCC) targets at a negative 0.1 per cent for short-term interest rates and 0 per cent for the 10-year bond yield. However, Nakao, who is in talks with present policymakers, argues for a change in direction. "In the face of ongoing headline inflation and an excessively weak yen, the BOJ may have no choice but to proceed with monetary policy normalisation, including an exit from negative rate policy and yield curve control, so as not to fall behind the curve," Nakao told Reuters. "Given that JGB yields remain stable and inflation is on the rise, now is the chance to tweak yield curve control." (With inputs from Reuters) WATCH WION LIVE HERE

Japan contemplates yen intervention and policy shift as economic concerns mount

The Reserve Bank of India (RBI) will likely keep its policy rates unchanged for the fourth consecutive time at the upcoming bi-monthly monetary policy review meeting in early October.

This stance is expected due to persistently high retail inflation and the U.S. Federal Reserve's commitment to a hawkish stance, according to government sources.

The RBI had previously raised the benchmark repo rate to 6.5 per cent on February 8, 2023, and has maintained it at this level since; citing concerns about rigid retail inflation and global factors, including hiked prices for crude oil.

Madan Sabnavis, Chief Economist at Bank of Baroda, said&nbsp;that the RBI would maintain the status quo due to high inflation and tight liquidity.

He noted, "In fact, going by RBI forecast on inflation, it would be above 5 per cent in Q3 too, which will ensure that the status quo prevails for the calendar year for sure and probably Q4 too."

Sabnavis also highlighted uncertainties surrounding the Kharif crop, particularly in pulses, which could lead to price hikes.

Retail inflation based on the Consumer Price Index (CPI) decreased somewhat from 7.44 percent in July to 6.83 percent in August, although it still exceeded the RBI's comfort level of 6 percent. The government has given the RBI a target of keeping inflation at 4 per cent with a 2 per cent margin on each side.

Expecting a further reduction in CPI inflation to 5.3-5.5 per cent in September 2023, Aditi Nayar, Chief Economist at ICRA Limited, said that there are “upside risks to food inflation due to uneven and sub-par monsoons and low reservoir levels affecting Kharif yields and Rabi sowing.”

The Reserve Bank's projections indicate CPI inflation at 5.4 per cent for 2023-24, with Q2 at 6.2 per cent, Q3 at 5.7 per cent, and Q4 at 5.2 per cent, with risks evenly balanced. CPI inflation for Q1, 2024-25 is projected at 5.2 per cent. The RBI primarily considers CPI-based inflation in its monetary policy decisions.

Sanjay Bhutani, Director of the Medical Technology Association of India (MTaI), called for the RBI to contemplate an interest rate reduction to stimulate growth, given the market sentiment of retaining the benchmark interest rate at 6.5 per cent. He also suggested that if a rate reduction is not feasible due to high retail inflation and the Federal Reserve's hawkish stance, the RBI should provide a clear indication of future rate easing, which would benefit sectors like medical technology.

Sandeep Bagla, CEO of Trust Mutual Fund, acknowledged that the interest rate environment has&nbsp;deteriorated since the last MPC policy review in August. With both the U.S. and Indian economies growth and inflation rising to alarming levels, he expects the MPC to maintain the existing repo rates. However, Bagla said that headline inflation is expected to decrease in the next few month.

The Reserve Bank has maintained the repo rate at 6.5 per cent since February, following the earlier increase from 6.25 per cent. In subsequent bi-monthly policy reviews in April, June, and August, the benchmark rate remained the same.

The Monetary Policy Committee (MPC) comprises three external members and three RBI officials, with its next meeting scheduled for October 4-6, 2023.

Governor Das leads the committee. Other RBI officials&nbsp;include&nbsp;Rajiv Ranjan (Executive Director) and Michael Debabrata Patra (Deputy Governor). External members include Shashanka Bhide, Ashima Goyal, and Jayanth R. Varma.

(With inputs from PTI)

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The Reserve Bank of India (RBI) will likely keep its policy rates unchanged for the fourth consecutive time at the upcoming bi-monthly monetary policy review meeting in early October.

The Reserve Bank of India (RBI) will likely keep its policy rates unchanged for the fourth consecutive time at the upcoming bi-monthly monetary policy review meeting in early October. This stance is expected due to persistently high retail inflation and the U.S. Federal Reserve's commitment to a hawkish stance, according to government sources. The RBI had previously raised the benchmark repo rate to 6.5 per cent on February 8, 2023, and has maintained it at this level since; citing concerns about rigid retail inflation and global factors, including hiked prices for crude oil. Madan Sabnavis, Chief Economist at Bank of Baroda, said that the RBI would maintain the status quo due to high inflation and tight liquidity. He noted, "In fact, going by RBI forecast on inflation, it would be above 5 per cent in Q3 too, which will ensure that the status quo prevails for the calendar year for sure and probably Q4 too." Sabnavis also highlighted uncertainties surrounding the Kharif crop, particularly in pulses, which could lead to price hikes. Retail inflation based on the Consumer Price Index (CPI) decreased somewhat from 7.44 percent in July to 6.83 percent in August, although it still exceeded the RBI's comfort level of 6 percent. The government has given the RBI a target of keeping inflation at 4 per cent with a 2 per cent margin on each side. Expecting a further reduction in CPI inflation to 5.3-5.5 per cent in September 2023, Aditi Nayar, Chief Economist at ICRA Limited, said that there are “upside risks to food inflation due to uneven and sub-par monsoons and low reservoir levels affecting Kharif yields and Rabi sowing.” The Reserve Bank's projections indicate CPI inflation at 5.4 per cent for 2023-24, with Q2 at 6.2 per cent, Q3 at 5.7 per cent, and Q4 at 5.2 per cent, with risks evenly balanced. CPI inflation for Q1, 2024-25 is projected at 5.2 per cent. The RBI primarily considers CPI-based inflation in its monetary policy decisions. Sanjay Bhutani, Director of the Medical Technology Association of India (MTaI), called for the RBI to contemplate an interest rate reduction to stimulate growth, given the market sentiment of retaining the benchmark interest rate at 6.5 per cent. He also suggested that if a rate reduction is not feasible due to high retail inflation and the Federal Reserve's hawkish stance, the RBI should provide a clear indication of future rate easing, which would benefit sectors like medical technology. Sandeep Bagla, CEO of Trust Mutual Fund, acknowledged that the interest rate environment has deteriorated since the last MPC policy review in August. With both the U.S. and Indian economies growth and inflation rising to alarming levels, he expects the MPC to maintain the existing repo rates. However, Bagla said that headline inflation is expected to decrease in the next few month. The Reserve Bank has maintained the repo rate at 6.5 per cent since February, following the earlier increase from 6.25 per cent. In subsequent bi-monthly policy reviews in April, June, and August, the benchmark rate remained the same. The Monetary Policy Committee (MPC) comprises three external members and three RBI officials, with its next meeting scheduled for October 4-6, 2023. Governor Das leads the committee. Other RBI officials include Rajiv Ranjan (Executive Director) and Michael Debabrata Patra (Deputy Governor). External members include Shashanka Bhide, Ashima Goyal, and Jayanth R. Varma. (With inputs from PTI) WATCH WION LIVE HERE

RBI expected to maintain interest rates amid high inflation & global factors: Report

Inflation in Europe's largest economy fell in September to its lowest level since the Ukraine war. This is likely to be seen as the beginning of the end for the high inflation that has weighed heavily on Germany's economy. Preliminary data from the federal statistics office showed on Thursday that German consumer prices rose by an annual 4.3% in September.

Inflationary pressure eases in Germany

Austan Goolsbee, President of the Federal Reserve Bank of Chicago, has expressed optimism about the possibility of the United States avoiding a recession, even as the central bank continues to raise interest rates in an effort to combat inflation.

In a recent interview with CNBC, Goolsbee referred to this optimistic scenario as the "golden path," although he acknowledged that it comes with its share of risks and uncertainties.

"I've been calling that the golden path, and I think it's possible, but there are a lot of risks and the path is long and winding," Bloomberg quoted Goolsbee as saying, emphasising the complexities of the current economic landscape.

Goolsbee drew attention to the unemployment rate, which was at &nbsp;3.8 per cent last month and remained remarkably close to its level from the previous year when inflation was significantly higher than it is presently. This comparison underscores the Federal Reserve's challenge of achieving both full employment and price stability.

According to a report by Bloomberg, the Federal Reserve officials recently decided to maintain their benchmark lending rate at a 22-year high, with the expectation of one more rate hike for the present fiscal year. Additionally, policymakers signalled a more positive outlook for a "soft landing" for the U.S. economy but acknowledged that interest rates are likely to remain elevated for an extended period.

The report cited Chair Jerome Powell reassured that policymakers would approach the end of the rate-hiking cycle with caution while maintaining their commitment to bringing inflation back to the 2 per cent target. In July, the preferred inflation gauge for Fed officials saw a 0.2 per cent increase for the second consecutive month, marking the smallest consecutive gains since late 2020.

Goolsbee, who had previously noted progress in monthly core inflation data, reiterated that the time is rapidly approaching for discussions to shift from how high to raise rates to how long they should be held at elevated levels. The Federal Reserve will be closely monitoring fresh inflation data for August, set to be released on Friday, to inform their ongoing policy decisions.

(With inputs from Bloomberg)

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Austan Goolsbee, President of the Federal Reserve Bank of Chicago, has expressed optimism about the possibility of the United States avoiding a recession, even as the central bank continues to raise interest rates in an effort to combat inflation.

Austan Goolsbee, President of the Federal Reserve Bank of Chicago, has expressed optimism about the possibility of the United States avoiding a recession, even as the central bank continues to raise interest rates in an effort to combat inflation. In a recent interview with CNBC, Goolsbee referred to this optimistic scenario as the "golden path," although he acknowledged that it comes with its share of risks and uncertainties. "I've been calling that the golden path, and I think it's possible, but there are a lot of risks and the path is long and winding," Bloomberg quoted Goolsbee as saying, emphasising the complexities of the current economic landscape. Goolsbee drew attention to the unemployment rate, which was at 3.8 per cent last month and remained remarkably close to its level from the previous year when inflation was significantly higher than it is presently. This comparison underscores the Federal Reserve's challenge of achieving both full employment and price stability. According to a report by Bloomberg, the Federal Reserve officials recently decided to maintain their benchmark lending rate at a 22-year high, with the expectation of one more rate hike for the present fiscal year. Additionally, policymakers signalled a more positive outlook for a "soft landing" for the U.S. economy but acknowledged that interest rates are likely to remain elevated for an extended period. The report cited Chair Jerome Powell reassured that policymakers would approach the end of the rate-hiking cycle with caution while maintaining their commitment to bringing inflation back to the 2 per cent target. In July, the preferred inflation gauge for Fed officials saw a 0.2 per cent increase for the second consecutive month, marking the smallest consecutive gains since late 2020. Goolsbee, who had previously noted progress in monthly core inflation data, reiterated that the time is rapidly approaching for discussions to shift from how high to raise rates to how long they should be held at elevated levels. The Federal Reserve will be closely monitoring fresh inflation data for August, set to be released on Friday, to inform their ongoing policy decisions. (With inputs from Bloomberg) WATCH WION LIVE HERE

Federal Reserve official highlights "golden path" to avert recession amidst rate hikes

As Pakistan continues to reel under a grave economic crisis, the World Bank has now declared that the country’s current economic model is unfit for reducing poverty. The warning came as over 12.5 million people fell below the poverty line in Pakistan in the last year alone. It means that over 40 per cent population in the South Asian country is now living under the poverty line as they struggle to meet basic needs such as food, water and electricity. Take a look.

Pakistan: 40% population slips below poverty line, World Bank sounds alarm bell | WION Originals

The United Kingdom is currently experiencing a significant rise in inflation, impacting its already struggling economy. Inflation rates there have reached unprecedented levels. In this report, we delve deep into the cost-of-living crisis in the UK.

How inflation is affecting the UK economy

Saudi Arabia and Russia extended production curbs. The price of Crude Oil regarded as a global benchmark rose to around 95% barrel on Monday as investors fretted about a worsening supply gap in the fourth quarter.

Oil price surge to $95, inflation fears rise amid oil price rally | World DNA

In an effort to reduce home inflationary pressures, the French government intends to temporarily waive a ban on merchants selling fuel below cost, Prime Minister Elisabeth Borne told newspaper Le Parisien.

This summer's spike in petrol prices has complicated government efforts to control consumer inflation, with ministers urging the food and fuel businesses to reduce their margins.

TotalEnergies has extended the year-end fuel price cap, and several supermarket chains have run specials to offer petrol at cost.

However, Borne claimed that wholesalers were unable to lower prices any more due to a 1963 prohibition on selling fuel below cost, albeit the ban would be abolished for "several months."

"With this unprecedented measure, we will obtain tangible results for the French people, without subsidising fuel," Reuters quoted her as saying in an interview published on Saturday.

She dismissed the notion of the government lowering fuel taxes, pointing out the need to lower the public deficit and debt while arguing that big businesses should contribute as well.

The government may need to take action to address the issue of large profit margins in the petroleum refining industry, according to Finance Minister Bruno Le Maire on Thursday.

Regarding food costs, Borne informed Le Parisien that beginning in November; businesses must make a note on labels whenever they change a product's size.

During the recent price surge in the food industry, so-called "shrinkflation," in which products are supplied in lower quantities without any price drop, has come under fire.

This month, the French retail operator Carrefour made the announcement that it will put notices next to any products that it discovered to be engaged in such practices.

(With inputs from Reuters)

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In an effort to reduce home inflationary pressures, the French government intends to temporarily waive a ban on merchants selling fuel below cost, Prime Minister Elisabeth Borne told newspaper Le Parisien.

In an effort to reduce home inflationary pressures, the French government intends to temporarily waive a ban on merchants selling fuel below cost, Prime Minister Elisabeth Borne told newspaper Le Parisien. This summer's spike in petrol prices has complicated government efforts to control consumer inflation, with ministers urging the food and fuel businesses to reduce their margins. TotalEnergies has extended the year-end fuel price cap, and several supermarket chains have run specials to offer petrol at cost. However, Borne claimed that wholesalers were unable to lower prices any more due to a 1963 prohibition on selling fuel below cost, albeit the ban would be abolished for "several months." "With this unprecedented measure, we will obtain tangible results for the French people, without subsidising fuel," Reuters quoted her as saying in an interview published on Saturday. She dismissed the notion of the government lowering fuel taxes, pointing out the need to lower the public deficit and debt while arguing that big businesses should contribute as well. The government may need to take action to address the issue of large profit margins in the petroleum refining industry, according to Finance Minister Bruno Le Maire on Thursday. Regarding food costs, Borne informed Le Parisien that beginning in November; businesses must make a note on labels whenever they change a product's size. During the recent price surge in the food industry, so-called "shrinkflation," in which products are supplied in lower quantities without any price drop, has come under fire. This month, the French retail operator Carrefour made the announcement that it will put notices next to any products that it discovered to be engaged in such practices. (With inputs from Reuters) WATCH WION LIVE HERE

France to permit sale of fuel below cost to combat inflation

Carrefour, a leading French retail chain, has launched a campaign to combat "shrinkflation," adding price warnings on a variety of goods, including Lindt chocolates and Lipton iced tea.&nbsp;

The action is intended to put pressure on significant consumer products suppliers like Nestle, PepsiCo, and Unilever to reduce prices, and also prepares the ground for crucial contract negotiations that are scheduled to be finished by October 15.&nbsp;

Even as raw material costs have begun to decline, Carrefour has started identifying goods that have increased in price but have shrunk in size. The objective is to gain consumer support as retailers get ready for significant negotiations with some of the biggest brands in the world.&nbsp;

Reuters quoted Stefen Bompais, Director of Client Communications at Carrefour, as saying that the intent behind the initiative, saying, "Obviously, the aim in stigmatising these products is to be able to tell manufacturers to rethink their pricing policy."&nbsp;

Despite a drop in the cost of raw materials, Carrefour's CEO, Alexandre Bompard, who also serves as the head of the retail sector advocacy group FDC, has often expressed his concerns about the failure of consumer goods producers to cooperate in lowering the prices of various basics.&nbsp;

Bruno Le Maire, France's finance minister, has echoed these worries by calling 75 significant shops and consumer advocacy organisations in June to demand price reductions. Le Maire singled out Unilever, Nestle, and PepsiCo as firms not reaching pricing expectations following a new round of meetings last month.&nbsp;

Starting from Monday, Carrefour has labelled 26 products in its French stores with tags reading, “This product has seen its volume or weight fall and the effective price by the supplier rise.”&nbsp;

For instance, PepsiCo lowered the size of a bottle of its sugar-free, peach-flavored Lipton Iced Tea from 1.5 to 1.25 litres, resulting in a 40 per cent rise in the actual price per litre. Infant formula from Nestle, Guigoz, was reduced from 900 grams to 830 grams, and the Viennetta ice-cream cake from Unilever was reduced from 350 grams to 320 grams.&nbsp;

Consumer advocacy groups contend that retailers like Carrefour use "shrinkflation" on their private label products, making it a common practice.&nbsp;

With varying degrees of success, France and other European countries have been forcing large corporations to freeze or lower food and transport prices for several months to ease consumer woes brought on by rising living costs.&nbsp;

Bompais said that Carrefour has issued shrinkflation warnings in all its French stores and will continue to do so until the targeted suppliers agree to lower prices.&nbsp;

Although the shop could apply warnings to other products, it does not currently have plans to expand this programme.&nbsp;

(With inputs from Reuters)

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Carrefour, a leading French retail chain, has launched a campaign to combat "shrinkflation," adding price warnings on a variety of goods, including Lindt chocolates and Lipton iced tea.

Carrefour, a leading French retail chain, has launched a campaign to combat "shrinkflation," adding price warnings on a variety of goods, including Lindt chocolates and Lipton iced tea. The action is intended to put pressure on significant consumer products suppliers like Nestle, PepsiCo, and Unilever to reduce prices, and also prepares the ground for crucial contract negotiations that are scheduled to be finished by October 15. Even as raw material costs have begun to decline, Carrefour has started identifying goods that have increased in price but have shrunk in size. The objective is to gain consumer support as retailers get ready for significant negotiations with some of the biggest brands in the world. Reuters quoted Stefen Bompais, Director of Client Communications at Carrefour, as saying that the intent behind the initiative, saying, "Obviously, the aim in stigmatising these products is to be able to tell manufacturers to rethink their pricing policy." Despite a drop in the cost of raw materials, Carrefour's CEO, Alexandre Bompard, who also serves as the head of the retail sector advocacy group FDC, has often expressed his concerns about the failure of consumer goods producers to cooperate in lowering the prices of various basics. Bruno Le Maire, France's finance minister, has echoed these worries by calling 75 significant shops and consumer advocacy organisations in June to demand price reductions. Le Maire singled out Unilever, Nestle, and PepsiCo as firms not reaching pricing expectations following a new round of meetings last month. Starting from Monday, Carrefour has labelled 26 products in its French stores with tags reading, “This product has seen its volume or weight fall and the effective price by the supplier rise.” For instance, PepsiCo lowered the size of a bottle of its sugar-free, peach-flavored Lipton Iced Tea from 1.5 to 1.25 litres, resulting in a 40 per cent rise in the actual price per litre. Infant formula from Nestle, Guigoz, was reduced from 900 grams to 830 grams, and the Viennetta ice-cream cake from Unilever was reduced from 350 grams to 320 grams. Consumer advocacy groups contend that retailers like Carrefour use "shrinkflation" on their private label products, making it a common practice. With varying degrees of success, France and other European countries have been forcing large corporations to freeze or lower food and transport prices for several months to ease consumer woes brought on by rising living costs. Bompais said that Carrefour has issued shrinkflation warnings in all its French stores and will continue to do so until the targeted suppliers agree to lower prices. Although the shop could apply warnings to other products, it does not currently have plans to expand this programme. (With inputs from Reuters) WATCH WION LIVE HERE

French retail chain Carrefour takes action against "shrinkflation". Here's why

The consumer prices in the world's largest economy rose by the most in 14 months in august. That's largely due to a rise in the cost of gasoline. However, the annual rise in underlying inflation was the smallest in nearly two years. This is significant as it is likely to give the Federal Reserve some space to leave interest rates unchanged this month. The consumer price index increased by 0.6% last month, the largest gain since June 2022, after rising 0.2% for two straight months. Gasoline prices, which jumped 10.6% after climbing 0.2% in July, accounted for more than half of the increase in the CPI.

Gasoline fuels US inflation

The drama over election dates in Pakistan continues President Arif Alvi has proposed November 6th as the date for general elections.

Pakistan president proposes November 6 as date for general elections

Poverty increased sharply in the last year in the US, new data published by the Census Bureau on Tuesday (September 12) has shown. The rising cost of living and the government pulling the plug on federal programmes that provided aid to families during the pandemic were cited as a few of the many reasons that contributed to increased poverty, particularly among children.&nbsp;

In total, 12.4 per cent of Americans lived in poverty in 2022, which was a significant uptick from 7.8 per cent in 2021, the bureau said. Inflation played a part in the increase as nominal gains were cancelled out by&nbsp;record-high inflation numbers.&nbsp;

The report stated that inflation-adjusted, median household incomes in the US fell by 2.3 per cent in 2022, compared to the year prior - making it the third straight year when median household incomes had declined.&nbsp;

Notably, in 2021, a family of four living in a rental home was&nbsp;considered poor if the income was less than&nbsp;$31,453. However, the metric shot up to $34,518 in 2022 as families below this number were classified as poor in the report.&nbsp;

Additionally, the poverty rate for children in 2022 doubled from the previous year, primarily due to the loss of the expanded Child Tax Credit&nbsp;

"The steeper relative declines in post-tax income at the bottom and middle of the income distribution are attributable to the expiration of a number of tax policies," Census Bureau official Liana Fox was quoted as saying by news agency AFP.&nbsp;

<a href="https://www.wionews.com/videos/cartonomics-decoding-the-state-of-us-economy-626756">Watch |&nbsp;Cartonomics: Decoding the state of US economy</a>

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<h2>Biden reacts</h2>

President Joe Biden, reflecting on the damning data, blamed the GOP lawmakers for refusing to extend Child Tax Credit.&nbsp;

"The rise reported today in child poverty is no accident, it is the result of a deliberate policy choice congressional Republicans made to block help for families with children while advancing massive tax cuts for the wealthiest and largest corporations," said Biden.&nbsp;

"No child should grow up in poverty, and I will continue to fight to restore the expanded Child Tax Credit to give tens of millions of families the tax relief and breathing room they deserve," he added.

<a href="https://www.wionews.com/business-economy/forecast-chinas-slowdown-means-it-may-not-surpass-us-economy-632540">Also read |&nbsp;Forecast: China’s slowdown means it may not surpass US economy</a>

The White House added that more recent data might "tell a more optimistic story" as inflation had cooled in the past few months.&nbsp;

Experts have warned that the increase in poverty, particularly amongst children, could worsen over the next year if the government and politicians fail to fill in the financial gaps with social safety net programmes for struggling families.&nbsp;

(With inputs from agencies)

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Poverty increased sharply in the last year in the US, new data published by the Census Bureau on Tuesday (September 12) has shown. The rising cost of living and the government pulling the plug on federal programmes that provided aid to families during the pandemic were cited as a few of the many reasons that contributed to increased poverty, particularly among children.

Poverty increased sharply in the last year in the US, new data published by the Census Bureau on Tuesday (September 12) has shown. The rising cost of living and the government pulling the plug on federal programmes that provided aid to families during the pandemic were cited as a few of the many reasons that contributed to increased poverty, particularly among children. In total, 12.4 per cent of Americans lived in poverty in 2022, which was a significant uptick from 7.8 per cent in 2021, the bureau said. Inflation played a part in the increase as nominal gains were cancelled out by record-high inflation numbers. The report stated that inflation-adjusted, median household incomes in the US fell by 2.3 per cent in 2022, compared to the year prior - making it the third straight year when median household incomes had declined. Notably, in 2021, a family of four living in a rental home was considered poor if the income was less than $31,453. However, the metric shot up to $34,518 in 2022 as families below this number were classified as poor in the report. Additionally, the poverty rate for children in 2022 doubled from the previous year, primarily due to the loss of the expanded Child Tax Credit "The steeper relative declines in post-tax income at the bottom and middle of the income distribution are attributable to the expiration of a number of tax policies," Census Bureau official Liana Fox was quoted as saying by news agency AFP. Watch | Cartonomics: Decoding the state of US economy × Biden reacts President Joe Biden, reflecting on the damning data, blamed the GOP lawmakers for refusing to extend Child Tax Credit. "The rise reported today in child poverty is no accident, it is the result of a deliberate policy choice congressional Republicans made to block help for families with children while advancing massive tax cuts for the wealthiest and largest corporations," said Biden. "No child should grow up in poverty, and I will continue to fight to restore the expanded Child Tax Credit to give tens of millions of families the tax relief and breathing room they deserve," he added. Also read | Forecast: China’s slowdown means it may not surpass US economy The White House added that more recent data might "tell a more optimistic story" as inflation had cooled in the past few months. Experts have warned that the increase in poverty, particularly amongst children, could worsen over the next year if the government and politicians fail to fill in the financial gaps with social safety net programmes for struggling families. (With inputs from agencies) WATCH WION LIVE HERE:

Poverty rate increased in the US in 2022: Census Bureau

Following a temporary decline in the rouble last month, Russian President Vladimir Putin took a soothing stance on the currency’s future, indicating that the government is not planning to enact further capital controls to stabilise the currency, Bloomberg reported.

The volatility of the currency is “manageable,” according to Putin, who spoke on Tuesday at an economic conference in Vladivostok, a port city on the Pacific coast of Russia. The supply of foreign currency has been constrained, he claimed, since exporters have been “restrained” in bringing their profits home from overseas.

“We need to somehow come to an agreement with business, they have to understand&nbsp;and proceed from the fact that it is safer to work here,” Bloomberg quoted Putin as saying ,“Nothing drastic needs to be done.”

The debate over capital controls in Russia has been contentious, but there a limited need for restrictions on the flow of money now that the rouble is beginning to stabilise after seeing the third-largest loss among developing markets this year.

Although the rouble lost some of its gains against the dollar as Putin spoke, it is still expected to post gains for a third straight day.

Putin is still holding his yearly display in Vladivostok, which he started doing in 2015 to entice investment and establish relationships with Asia-Pacific nations.

The event has evolved to reflect Russia’s isolation despite its increasing reliance on trade with Asia; this year, the vice president of Laos was the most notable participant to attend a plenary session with Putin. Zhang Guoqing, the Vice Premier of China, was also present at the forum and spoke with Putin on Tuesday.

Prior to his meeting with Putin on Wednesday, North Korean leader Kim Jong Un came to Russia on Tuesday. It is unknown at this time whether he would attend the conference or hold talks there. One of the prominent attendees in 2022 was Min Aung Hlaing, the leader of the junta in Myanmar and a person under US sanctions for alleged breaches of human rights.

Expanding international trade, investments, and technological and scientific collaboration will be some of the forum’s themes this year, according to Putin, whose remarks were posted on the forum’s website.

Along with the decline in the value of energy export receipts and a rise in imports, a shift away from settling trade in the dollar and the euro has also reduced the flow of currency into Russia.

Late last month, when the Russian rouble briefly surpassed 100 per dollar, the topic of capital controls resurfaced in Moscow. As a result, officials decided to take informal steps to make sure there is sufficient foreign currency available in the domestic market.

Prior to the collapse of the rouble, Putin warned of the threat from rising prices and requested action to stop the movement of cash out of Russia and to lessen market volatility.

In August, when the rouble was under heavy selling pressure, the central bank declared it would stop buying foreign currencies for the remainder of the year before delivering a sharp increase in interest rates at an emergency meeting.

However, the rouble has continued to be extremely volatile, suffering from a decline in foreign commerce in the midst of a number of international sanctions related to the Kremlin’s conflict in Ukraine.

This Friday marks the next policy review by the Bank of Russia, which just increased its benchmark rate to 12 per cent from 8.5 per cent, the second straight hike and the sharpest since the days immediately following Russia’s invasion of Ukraine in February 2022.

The central bank “was forced” to implement the significant rate increase, according to Putin, in part “because inflation began to rise slightly.”

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Following a temporary decline in the rouble last month, Russian President Vladimir Putin took a soothing stance on the currency’s future, indicating that the government is not planning to enact further capital controls to stabilise the currency, Bloomberg reported.

Following a temporary decline in the rouble last month, Russian President Vladimir Putin took a soothing stance on the currency’s future, indicating that the government is not planning to enact further capital controls to stabilise the currency, Bloomberg reported. The volatility of the currency is “manageable,” according to Putin, who spoke on Tuesday at an economic conference in Vladivostok, a port city on the Pacific coast of Russia. The supply of foreign currency has been constrained, he claimed, since exporters have been “restrained” in bringing their profits home from overseas. “We need to somehow come to an agreement with business, they have to understand and proceed from the fact that it is safer to work here,” Bloomberg quoted Putin as saying ,“Nothing drastic needs to be done.” The debate over capital controls in Russia has been contentious, but there a limited need for restrictions on the flow of money now that the rouble is beginning to stabilise after seeing the third-largest loss among developing markets this year. Although the rouble lost some of its gains against the dollar as Putin spoke, it is still expected to post gains for a third straight day. Putin is still holding his yearly display in Vladivostok, which he started doing in 2015 to entice investment and establish relationships with Asia-Pacific nations. The event has evolved to reflect Russia’s isolation despite its increasing reliance on trade with Asia; this year, the vice president of Laos was the most notable participant to attend a plenary session with Putin. Zhang Guoqing, the Vice Premier of China, was also present at the forum and spoke with Putin on Tuesday. Prior to his meeting with Putin on Wednesday, North Korean leader Kim Jong Un came to Russia on Tuesday. It is unknown at this time whether he would attend the conference or hold talks there. One of the prominent attendees in 2022 was Min Aung Hlaing, the leader of the junta in Myanmar and a person under US sanctions for alleged breaches of human rights. Expanding international trade, investments, and technological and scientific collaboration will be some of the forum’s themes this year, according to Putin, whose remarks were posted on the forum’s website. Along with the decline in the value of energy export receipts and a rise in imports, a shift away from settling trade in the dollar and the euro has also reduced the flow of currency into Russia. Late last month, when the Russian rouble briefly surpassed 100 per dollar, the topic of capital controls resurfaced in Moscow. As a result, officials decided to take informal steps to make sure there is sufficient foreign currency available in the domestic market. Prior to the collapse of the rouble, Putin warned of the threat from rising prices and requested action to stop the movement of cash out of Russia and to lessen market volatility. In August, when the rouble was under heavy selling pressure, the central bank declared it would stop buying foreign currencies for the remainder of the year before delivering a sharp increase in interest rates at an emergency meeting. However, the rouble has continued to be extremely volatile, suffering from a decline in foreign commerce in the midst of a number of international sanctions related to the Kremlin’s conflict in Ukraine. This Friday marks the next policy review by the Bank of Russia, which just increased its benchmark rate to 12 per cent from 8.5 per cent, the second straight hike and the sharpest since the days immediately following Russia’s invasion of Ukraine in February 2022. The central bank “was forced” to implement the significant rate increase, according to Putin, in part “because inflation began to rise slightly.” WATCH WION LIVE HERE

Putin expresses faith in the rouble, says ‘nothing drastic’ following crash

The average price of a household thali in India decreased slightly in August compared to the previous month, mainly because tomato prices fell significantly, Deccan Herald reported.

According to data gathered by rating agency CRISIL, homemade vegetarian thali preparation cost decreased to Rs 33.8 ($0.41) in August from Rs 34 ($0.41) in July, while non-vegetarian thali preparation cost marginally down to Rs 67.3 ($0.81) in August from Rs 67.6 ($0.81) in July.

On a year-over-year (YoY) basis, both categories’ expenses dramatically increased. When compared to the same month last year, the price of a vegetarian thali in August was 24 per cent&nbsp;higher. It was Rs 27.2 ($0.33) in August 2022.

A non-vegetarian thali increased in price by 13 per cent year over year, from Rs 59.8 ($0.72) in August 2022 to Rs 67.3 ($0.81) in August 2023.

The price of tomatoes, which increased by 176 per cent&nbsp;YoY to Rs 102 per kg ($1.23) in August 2023 from Rs 37 per kg ($0.45) in the same month the previous year, may be blamed for 21 per cent of the total increase in vegetarian thali's cost.

Tomato prices have dropped to about Rs 50 per kg ($0.60) after reaching a record high of over Rs 250 per kg ($3.01) in late July and early August.

The rating agency stated that expenses may start to level down as the retail price of tomatoes has decreased by half month-over-month to Rs 51 per kg ($0.61) in September. Additionally, starting in September, a 14.2 kg LPG cylinder will cost Rs 903 ($10.90) instead of the Rs 1,103 ($13.31) it did in August in Delhi. For customers, this will be a relief.

A vegetarian thali, for the sake of statistical consistency, consists of roti, vegetables (onion, tomato, and potato), rice, dal, curd, and salad. Chicken is used in place of dal for a non-vegetarian thali.

As most goods saw YoY price increases in August, the cost of food remained close to record highs despite the slight dip. Onion prices increased by 8 per cent, chili prices by 20 per cent, and cumin prices by 158 per cent YoY in August, which led to a 1 per cent increase in the price of vegetarian thali for the month.

The cost increase for non-vegetarian thali increased more slowly since broilers, which account for more than 50 per cent of the price, are thought to have increased between 1-3 per cent YoY.

However, a 17 per cent YoY drop in vegetable oil prices and a 14 per cent rise in potato prices helped to at least partially offset the expense of both thalis.

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The average price of a household thali in India decreased slightly in August compared to the previous month, mainly because tomato prices fell significantly, Deccan Herald reported.

The average price of a household thali in India decreased slightly in August compared to the previous month, mainly because tomato prices fell significantly, Deccan Herald reported. According to data gathered by rating agency CRISIL, homemade vegetarian thali preparation cost decreased to Rs 33.8 ($0.41) in August from Rs 34 ($0.41) in July, while non-vegetarian thali preparation cost marginally down to Rs 67.3 ($0.81) in August from Rs 67.6 ($0.81) in July. On a year-over-year (YoY) basis, both categories’ expenses dramatically increased. When compared to the same month last year, the price of a vegetarian thali in August was 24 per cent higher. It was Rs 27.2 ($0.33) in August 2022. A non-vegetarian thali increased in price by 13 per cent year over year, from Rs 59.8 ($0.72) in August 2022 to Rs 67.3 ($0.81) in August 2023. The price of tomatoes, which increased by 176 per cent YoY to Rs 102 per kg ($1.23) in August 2023 from Rs 37 per kg ($0.45) in the same month the previous year, may be blamed for 21 per cent of the total increase in vegetarian thali's cost. Tomato prices have dropped to about Rs 50 per kg ($0.60) after reaching a record high of over Rs 250 per kg ($3.01) in late July and early August. The rating agency stated that expenses may start to level down as the retail price of tomatoes has decreased by half month-over-month to Rs 51 per kg ($0.61) in September. Additionally, starting in September, a 14.2 kg LPG cylinder will cost Rs 903 ($10.90) instead of the Rs 1,103 ($13.31) it did in August in Delhi. For customers, this will be a relief. A vegetarian thali, for the sake of statistical consistency, consists of roti, vegetables (onion, tomato, and potato), rice, dal, curd, and salad. Chicken is used in place of dal for a non-vegetarian thali. As most goods saw YoY price increases in August, the cost of food remained close to record highs despite the slight dip. Onion prices increased by 8 per cent, chili prices by 20 per cent, and cumin prices by 158 per cent YoY in August, which led to a 1 per cent increase in the price of vegetarian thali for the month. The cost increase for non-vegetarian thali increased more slowly since broilers, which account for more than 50 per cent of the price, are thought to have increased between 1-3 per cent YoY. However, a 17 per cent YoY drop in vegetable oil prices and a 14 per cent rise in potato prices helped to at least partially offset the expense of both thalis. WATCH WION LIVE HERE

Household thali costs dip in August due to lower tomato prices

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