The wholesale price-based inflation rose for the second consecutive month in February to 4.17 per cent&nbsp;as food, fuel and power prices spiked.

The WPI inflation was 2.03 per cent in January and 2.26 per cent in February last year.

After witnessing months of softening of prices, the food articles in February saw 1.36 per cent inflation. In January it was (-) 2.80 per cent.

The vegetable price&nbsp;rise was (-) 2.90 per cent in February, against (-) 20.82 per cent in January.

Inflation in pulses was 10.25 per cent in February, while it fruits it was 9.48 per cent, and in fuel and power basket it was 0.58 per cent.

The RBI in its monetary policy last month kept interest rates unchanged for the fourth consecutive meeting and said that the near-term inflation outlook has turned favourable.

Retail inflation, based on the consumer price index, was at 5.03 per cent in February, data released last week showed.

Industrial&nbsp;growth re-entered the negative territory by contracting by 1.6 per cent in January, while retail inflation soared to a three-month high of 5.03 per cent in February on costlier food items.

The National Statistical Office (NSO) in the Ministry of Statistics and Programme Implementation (MoSPI) had earlier released the Quick Estimates of Index of Industrial Production (IIP) for January 2021 and Consumer Price Index (CPI) numbers for February 2021.

As per the data, the contraction in the IIP in January was mainly on account of a decline in output of capital goods, manufacturing and mining sectors.

The output of the manufacturing sector, which accounts for 77.6 per cent of the IIP, contracted by 2 per cent during the month under review, as against a growth of 1.8 per cent during the corresponding month last fiscal.

The worst performance was witnessed in the capital goods sector which showed a contraction of 9.6 per cent during January over a decline of 4.4 per cent during the same month in the previous fiscal.

NSO also revised upwardly the IIP number for December 2020 to 1.56 per cent from the earlier estimate of 1 per cent.

The factory output growth was in the negative territory in November 2020. It had posted an increase during September and October 2020.

The wholesale price-based inflation rose for the second consecutive month in February to 4.17 per cent as food, fuel and power prices spiked. The WPI inflation was 2.

The wholesale price-based inflation rose for the second consecutive month in February to 4.17 per cent as food, fuel and power prices spiked. The WPI inflation was 2.03 per cent in January and 2.26 per cent in February last year. After witnessing months of softening of prices, the food articles in February saw 1.36 per cent inflation. In January it was (-) 2.80 per cent. The vegetable price rise was (-) 2.90 per cent in February, against (-) 20.82 per cent in January. Inflation in pulses was 10.25 per cent in February, while it fruits it was 9.48 per cent, and in fuel and power basket it was 0.58 per cent. The RBI in its monetary policy last month kept interest rates unchanged for the fourth consecutive meeting and said that the near-term inflation outlook has turned favourable. Retail inflation, based on the consumer price index, was at 5.03 per cent in February, data released last week showed. Industrial growth re-entered the negative territory by contracting by 1.6 per cent in January, while retail inflation soared to a three-month high of 5.03 per cent in February on costlier food items. The National Statistical Office (NSO) in the Ministry of Statistics and Programme Implementation (MoSPI) had earlier released the Quick Estimates of Index of Industrial Production (IIP) for January 2021 and Consumer Price Index (CPI) numbers for February 2021. As per the data, the contraction in the IIP in January was mainly on account of a decline in output of capital goods, manufacturing and mining sectors. The output of the manufacturing sector, which accounts for 77.6 per cent of the IIP, contracted by 2 per cent during the month under review, as against a growth of 1.8 per cent during the corresponding month last fiscal. The worst performance was witnessed in the capital goods sector which showed a contraction of 9.6 per cent during January over a decline of 4.4 per cent during the same month in the previous fiscal. NSO also revised upwardly the IIP number for December 2020 to 1.56 per cent from the earlier estimate of 1 per cent. The factory output growth was in the negative territory in November 2020. It had posted an increase during September and October 2020.

Inflation rises over 4% over costlier food, fuel prices

Inflation in Sudan has risen to one of the highest levels in the world, and the country risks slipping into hyperinflation unless it gets its budget deficit and money supply under control, economists say.

The runaway prices have worsened an economic crisis for millions of ordinary Sudanese and imperilled a political transition under a military-civilian power sharing deal.

The government has run up enormous budget deficits by subsidising the cost of fuel, then financed the deficits by printing money.

This has debased the currency, weakening it against other currencies and driving inflation up to annual 230% in October, according to the state statistics bureau.

The skyrocketing prices have led many consumers to spend their salaries quickly, particularly on durable items that hold their value.

Idrees Abdelmoniem, who works in marketing at an engineering company in Khartoum, said he had snapped up car spare parts and furniture, but was not as quick with food and drink, whose prices were not increasing as fast.

“If I have something I want to buy outside of the monthly house supplies, I buy it as soon as I get money, and I won’t even try to haggle because tomorrow it could be double the price,” he said.

Central bank figures show the scale of money printing by the authorities with the M2 money supply measure increasing by over 50% in the year to end-September. In September alone M2 rose by 7.13%.

Steve Hanke, a hyperinflation specialist at Johns Hopkins University, calculated that on a monthly basis, the inflation rate has accelerated to about 24% a month, dangerously high, but still below hyperinflation, generally defined as 50% a month.

He placed Sudan among the five countries with the highest inflation.

“It’s pretty scary,” he said, adding that it was hard to predict what direction inflation would go from here.

SUBSIDIES

A US decision to remove Sudan from its list of state sponsors of terrorism has provided little immediate relief from the economic crisis and the country has turned to the International Monetary Fund for help.

Sudan is counting on a reform programme drawn up with the lender to help get control of the deficit, exacerbated by decades of U.S. economic sanctions and by economic mismanagement under President Omar al-Bashir, who was ousted in a popular uprising in April of last year.

Gross domestic product (GDP) contracted by more than 2% in both 2018 and 2019 and is expected to shrink another 8.5% in 2020 after being walloped by the coronavirus pandemic, Sudan told the IMF in September.

The one-year staff-monitored programme signed with the IMF commits the transitional government to reforming energy subsidies and reducing government borrowing from the central bank, among other reforms.

The programme is designed to provide a track record that would qualify Sudan for debt relief from its official creditors.

“The issue of hyperinflation is real, and it requires serious attention,” said Ibrahim Elbadawi, who stepped down as Sudan’s finance minister in July.

“The starting point should be the subsidies, because that will have unquestionable implications for the finances of the government.”

Fuel subsidies, which account for 71% of all subsidies, were equivalent to 10.6% of GDP in 2019, according to the IMF.

The government this year began allowing private companies to import petrol and diesel at near market prices and has gradually reduced the number of stations where subsidised fuel is sold.

Last month it doubled the price of locally produced petrol to 56 Sudanese pounds a litre, still among the lowest levels in the world. It says it stopped subsidising petrol and diesel altogether as of September.

The reforms should reduce fuel subsidies to 2.2% this year, the IMF said, but imported fuel will further stretch people’s resources as a collapsing currency pushes up its local price.

This week one U.S. dollar bought 255 Sudanese pounds on the black market, up from about 85 pounds a year ago. At the official rate a dollar fetches 55 pounds.

“Because of the gas situation, I’ve literally stopped going further than a 9 kilometre radius,” said Huda Khalid, who considers herself relatively well paid as a primary school teaching assistant at a private school. A 50% salary raise has done little to help.

“Electricity, gas money, internet, and groceries for a week and my salary is basically gone. For the rest, my dad sends money from Oman.”

Inflation in Sudan has risen to one of the highest levels in the world, and the country risks slipping into hyperinflation unless it gets its budget deficit and money supply under control, economists say.

Inflation in Sudan has risen to one of the highest levels in the world, and the country risks slipping into hyperinflation unless it gets its budget deficit and money supply under control, economists say. The runaway prices have worsened an economic crisis for millions of ordinary Sudanese and imperilled a political transition under a military-civilian power sharing deal. The government has run up enormous budget deficits by subsidising the cost of fuel, then financed the deficits by printing money. This has debased the currency, weakening it against other currencies and driving inflation up to annual 230% in October, according to the state statistics bureau. The skyrocketing prices have led many consumers to spend their salaries quickly, particularly on durable items that hold their value. Idrees Abdelmoniem, who works in marketing at an engineering company in Khartoum, said he had snapped up car spare parts and furniture, but was not as quick with food and drink, whose prices were not increasing as fast. “If I have something I want to buy outside of the monthly house supplies, I buy it as soon as I get money, and I won’t even try to haggle because tomorrow it could be double the price,” he said. Central bank figures show the scale of money printing by the authorities with the M2 money supply measure increasing by over 50% in the year to end-September. In September alone M2 rose by 7.13%. Steve Hanke, a hyperinflation specialist at Johns Hopkins University, calculated that on a monthly basis, the inflation rate has accelerated to about 24% a month, dangerously high, but still below hyperinflation, generally defined as 50% a month. He placed Sudan among the five countries with the highest inflation. “It’s pretty scary,” he said, adding that it was hard to predict what direction inflation would go from here. SUBSIDIES A US decision to remove Sudan from its list of state sponsors of terrorism has provided little immediate relief from the economic crisis and the country has turned to the International Monetary Fund for help. Sudan is counting on a reform programme drawn up with the lender to help get control of the deficit, exacerbated by decades of U.S. economic sanctions and by economic mismanagement under President Omar al-Bashir, who was ousted in a popular uprising in April of last year. Gross domestic product (GDP) contracted by more than 2% in both 2018 and 2019 and is expected to shrink another 8.5% in 2020 after being walloped by the coronavirus pandemic, Sudan told the IMF in September. The one-year staff-monitored programme signed with the IMF commits the transitional government to reforming energy subsidies and reducing government borrowing from the central bank, among other reforms. The programme is designed to provide a track record that would qualify Sudan for debt relief from its official creditors. “The issue of hyperinflation is real, and it requires serious attention,” said Ibrahim Elbadawi, who stepped down as Sudan’s finance minister in July. “The starting point should be the subsidies, because that will have unquestionable implications for the finances of the government.” Fuel subsidies, which account for 71% of all subsidies, were equivalent to 10.6% of GDP in 2019, according to the IMF. The government this year began allowing private companies to import petrol and diesel at near market prices and has gradually reduced the number of stations where subsidised fuel is sold. Last month it doubled the price of locally produced petrol to 56 Sudanese pounds a litre, still among the lowest levels in the world. It says it stopped subsidising petrol and diesel altogether as of September. The reforms should reduce fuel subsidies to 2.2% this year, the IMF said, but imported fuel will further stretch people’s resources as a collapsing currency pushes up its local price. This week one U.S. dollar bought 255 Sudanese pounds on the black market, up from about 85 pounds a year ago. At the official rate a dollar fetches 55 pounds. “Because of the gas situation, I’ve literally stopped going further than a 9 kilometre radius,” said Huda Khalid, who considers herself relatively well paid as a primary school teaching assistant at a private school. A 50% salary raise has done little to help. “Electricity, gas money, internet, and groceries for a week and my salary is basically gone. For the rest, my dad sends money from Oman.”

Sudan inflation soars, raising spectre of hyperinflation

India's annual retail inflation picked up in September to 7.34% from a year ago as food prices surged ahead of the festival season, government data showed on Monday.

Analysts in a Reuters poll had forecast that retail inflation would rise to 6.88% in September, compared to 6.69% in the previous month.

(More details awaited)

India's annual retail inflation picked up in September to 7.34% from a year ago as food prices surged ahead of the festival season, government data showed on Monday.

India's annual retail inflation picked up in September to 7.34% from a year ago as food prices surged ahead of the festival season, government data showed on Monday. Analysts in a Reuters poll had forecast that retail inflation would rise to 6.88% in September, compared to 6.69% in the previous month. (More details awaited)

India's September inflation picks up to 7.34%

The central bank will tolerate an inflation rate that exceeds its 2% target for an extended period before raising interest rates.

Federal reserve is taking a new approach to inflation

US consumer prices fell for a third straight month in May and underlying inflation was weak as demand for goods and services remained subdued amid a recession caused by the COVID-19 pandemic.

But with nonessential businesses reopening after shuttering in mid-March to slow the spread of COVID-19, deflation, a decline in the general price level, is unlikely. Still, the report from the Labor Department on Wednesday suggested the disinflationary trend could persist for a while.

That together with a struggling labor market supports the Federal Reserve`s commitment to maintain its very accommodative monetary policy stance for some time while nursing the economy back to health. The US central bank said on Wednesday COVID-19 "will weigh heavily on economic activity, employment, and inflation in the near term."

<a href="https://www.wionews.com/business-economy/indias-economy-to-contract-by-32-in-2020-21-world-bank-304352">Also read:&nbsp;India's economy to contract by 3.2% in 2020-21: World Bank</a>

"We expect the crisis to result in a sustained slowing in inflation due to a net increase in slack," said Jim O`Sullivan, chief US macro strategist at TD Securities in New York.

The Labor Department said its consumer price index dipped 0.1% last month after plunging 0.8% in April, which was the largest decline since December 2008. Prices were held down by a 3.5% drop in the cost of gasoline, which followed a 20.6% plunge in April. That offset a 0.7% increase in the cost of food last month. Food prices jumped 1.5% in April.

Prices for food consumed at home rose 1.0% after surging 2.6% in April. The cost of beef shot up a record 10.8% in May, reflecting shortages as a result of COVID-19 infections at meat processing plants. Expensive food has led consumers to anticipate higher inflation this year.

<a href="https://www.wionews.com/world/japans-economy-minister-warns-against-deepening-negative-rates-304121">Also read:&nbsp;Japan's economy minister warns against deepening negative rates</a>

Consumers also paid more for dairy products, fruits and vegetables. But cereals and bakery products were cheaper last month. In the 12 months through May, the CPI edged up 0.1%. That was the smallest year-on-year rise since September 2015 and followed a 0.3% increase in April.

Economists polled by Reuters had forecast the CPI would be unchanged in May and gain 0.2% year-on-year. 
The National Bureau of Economic Research, the arbiter of US recessions, declared on Monday that the economy slipped into recession in February.

The Labor Department said in-store data collection had remained suspended since March 16 because of risks of exposure to COVID-19. The department added that data collection last month was also impacted "by the temporary closing or limited operations of certain types of establishments," leading to "an increase in the number of prices being considered temporarily unavailable and imputed."

Stocks on Wall Street were mixed in choppy trading. The dollar fell against a basket of currencies. US Treasury prices rose.

Rents increase

Excluding the volatile food and energy components, the CPI slipped 0.1% in May after decreasing 0.4% in April, the largest drop since the series started in 1957. The so-called core CPI fell in March for the first time since January 2010.

May marked the first time that the core CPI has dropped for three consecutive months. Underlying inflation was depressed by continued decreases in the costs of motor vehicle insurance and apparel. Airline fares fell 4.9% and used cars and trucks prices dropped 0.4%.

The cost of hotel and motel accommodation dropped 1.8% last month after record 8.1% plunge in April.

Those price declines offset a 0.3% increase in owners` equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home. This rent measure gained 0.2% in April, likely reflecting forbearance agreements between landlords and tenants who have lost their jobs or have had their hours cut because of the global pandemic.

The economy has shed nearly 20 million jobs since March.

Healthcare costs increased 0.5% in May after a solid 0.4% rise in April. Consumers paid more for household furnishings, new vehicles, alcoholic beverages and education.

In the 12 months through May, the core CPI rose 1.2%, the smallest gain since March 2011. The core CPI increased 1.4% year-on-year in April.

The Fed tracks the core personal consumption expenditures (PCE) price index for its 2% inflation target. The core PCE price index increased 1.0% on a year-on-year basis in April, the smallest advance since December 2010. May`s core PCE price index data will be released at the end of the month.

The Fed projected core inflation rising 1.0% this year and picking up to 1.5% in 2021. Back in December, it forecast inflation at 1.9% this year and 2% in 2021.

"The weakness in the economy should keep downward pressure on inflation over time and we expect softness in the core measures to be reported for upcoming months," said Daniel Silver, an economist at JPMorgan in New York.

"But we think that we probably have moved past the largest sequential monthly declines in inflation that came shortly after the virus spread."

US consumer prices fell for a third straight month in May and underlying inflation was weak as demand for goods and services remained subdued amid a recession caused by the COVID-19 pandemic.

US consumer prices fell for a third straight month in May and underlying inflation was weak as demand for goods and services remained subdued amid a recession caused by the COVID-19 pandemic. But with nonessential businesses reopening after shuttering in mid-March to slow the spread of COVID-19, deflation, a decline in the general price level, is unlikely. Still, the report from the Labor Department on Wednesday suggested the disinflationary trend could persist for a while. That together with a struggling labor market supports the Federal Reserve`s commitment to maintain its very accommodative monetary policy stance for some time while nursing the economy back to health. The US central bank said on Wednesday COVID-19 "will weigh heavily on economic activity, employment, and inflation in the near term." Also read: India's economy to contract by 3.2% in 2020-21: World Bank "We expect the crisis to result in a sustained slowing in inflation due to a net increase in slack," said Jim O`Sullivan, chief US macro strategist at TD Securities in New York. The Labor Department said its consumer price index dipped 0.1% last month after plunging 0.8% in April, which was the largest decline since December 2008. Prices were held down by a 3.5% drop in the cost of gasoline, which followed a 20.6% plunge in April. That offset a 0.7% increase in the cost of food last month. Food prices jumped 1.5% in April. Prices for food consumed at home rose 1.0% after surging 2.6% in April. The cost of beef shot up a record 10.8% in May, reflecting shortages as a result of COVID-19 infections at meat processing plants. Expensive food has led consumers to anticipate higher inflation this year. Also read: Japan's economy minister warns against deepening negative rates Consumers also paid more for dairy products, fruits and vegetables. But cereals and bakery products were cheaper last month. In the 12 months through May, the CPI edged up 0.1%. That was the smallest year-on-year rise since September 2015 and followed a 0.3% increase in April. Economists polled by Reuters had forecast the CPI would be unchanged in May and gain 0.2% year-on-year. The National Bureau of Economic Research, the arbiter of US recessions, declared on Monday that the economy slipped into recession in February. The Labor Department said in-store data collection had remained suspended since March 16 because of risks of exposure to COVID-19. The department added that data collection last month was also impacted "by the temporary closing or limited operations of certain types of establishments," leading to "an increase in the number of prices being considered temporarily unavailable and imputed." Stocks on Wall Street were mixed in choppy trading. The dollar fell against a basket of currencies. US Treasury prices rose. Rents increase Excluding the volatile food and energy components, the CPI slipped 0.1% in May after decreasing 0.4% in April, the largest drop since the series started in 1957. The so-called core CPI fell in March for the first time since January 2010. May marked the first time that the core CPI has dropped for three consecutive months. Underlying inflation was depressed by continued decreases in the costs of motor vehicle insurance and apparel. Airline fares fell 4.9% and used cars and trucks prices dropped 0.4%. The cost of hotel and motel accommodation dropped 1.8% last month after record 8.1% plunge in April. Those price declines offset a 0.3% increase in owners` equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home. This rent measure gained 0.2% in April, likely reflecting forbearance agreements between landlords and tenants who have lost their jobs or have had their hours cut because of the global pandemic. The economy has shed nearly 20 million jobs since March. Healthcare costs increased 0.5% in May after a solid 0.4% rise in April. Consumers paid more for household furnishings, new vehicles, alcoholic beverages and education. In the 12 months through May, the core CPI rose 1.2%, the smallest gain since March 2011. The core CPI increased 1.4% year-on-year in April. The Fed tracks the core personal consumption expenditures (PCE) price index for its 2% inflation target. The core PCE price index increased 1.0% on a year-on-year basis in April, the smallest advance since December 2010. May`s core PCE price index data will be released at the end of the month. The Fed projected core inflation rising 1.0% this year and picking up to 1.5% in 2021. Back in December, it forecast inflation at 1.9% this year and 2% in 2021. "The weakness in the economy should keep downward pressure on inflation over time and we expect softness in the core measures to be reported for upcoming months," said Daniel Silver, an economist at JPMorgan in New York. "But we think that we probably have moved past the largest sequential monthly declines in inflation that came shortly after the virus spread."

US inflation subdued with economy in recession

Pakistan's consumer price inflation eased to 9.5% in April, its statistics office said on Friday, extending a months-long decline as the economy tanks due to the coronavirus crisis despite three interest rate cuts.

The South Asian nation is struggling to keep its economy afloat as the reported number of infections from COVID-19, the highly contagious respiratory disease caused by the novel coronavirus has risen to 16,817, with 385 deaths.

Consumer price inflation was 10.24% in March after having risen in January to 14.56%, its highest in over a decade, severely squeezing household budgets.

The central bank kept interest rates unchanged at 13.25% in January but, once the coronavirus began battering business and household finances, it slashed rates three times in recent weeks to 9% to help cushion the blow.

Pakistan now faces a balance of payment crisis as the economy heads towards a major recession with a 1.5 per cent contraction forecast in the current financial year ending in June, compared with a pre-COVID-19 forecast of nearly 3% growth, according to the finance ministry and central bank.

Growth is projected to recover to about 2% in the 2021/22 fiscal year.

A steep drop in oil prices, which comprise most of Pakistan's import bill, has been welcome, allowing pump prices for petrol and diesel to be cut by 27% and 35% respectively since February, with the biggest cut coming on Thursday.

But critics say the government has not passed on the full advantage of the oil price fall to the public, instead raising taxes on petrol and diesel by up to 300%.

With the current account deficit mounting and foreign reserves shrivelling, businesses and industries that were shut to contain the spread of the coronavirus have been allowed to start reopening.

Pakistan agreed a $6 billion bailout from the International Monetary Fund last year and secured another $1.386 billion in rapid financing from the IMF at zero interest last month.

Islamabad is hoping for more bailout packages from the World Bank and other development partners as it plans to file for debt relief from G20 countries and bilateral partners, mainly longtime ally China.

Pakistan's consumer price inflation eased to 9.5% in April, its statistics office said on Friday, extending a months-long decline as the economy tanks due to the coronavirus crisis despite three interest rate cuts.

Pakistan's consumer price inflation eased to 9.5% in April, its statistics office said on Friday, extending a months-long decline as the economy tanks due to the coronavirus crisis despite three interest rate cuts. The South Asian nation is struggling to keep its economy afloat as the reported number of infections from COVID-19, the highly contagious respiratory disease caused by the novel coronavirus has risen to 16,817, with 385 deaths. Consumer price inflation was 10.24% in March after having risen in January to 14.56%, its highest in over a decade, severely squeezing household budgets. The central bank kept interest rates unchanged at 13.25% in January but, once the coronavirus began battering business and household finances, it slashed rates three times in recent weeks to 9% to help cushion the blow. Pakistan now faces a balance of payment crisis as the economy heads towards a major recession with a 1.5 per cent contraction forecast in the current financial year ending in June, compared with a pre-COVID-19 forecast of nearly 3% growth, according to the finance ministry and central bank. Growth is projected to recover to about 2% in the 2021/22 fiscal year. A steep drop in oil prices, which comprise most of Pakistan's import bill, has been welcome, allowing pump prices for petrol and diesel to be cut by 27% and 35% respectively since February, with the biggest cut coming on Thursday. But critics say the government has not passed on the full advantage of the oil price fall to the public, instead raising taxes on petrol and diesel by up to 300%. With the current account deficit mounting and foreign reserves shrivelling, businesses and industries that were shut to contain the spread of the coronavirus have been allowed to start reopening. Pakistan agreed a $6 billion bailout from the International Monetary Fund last year and secured another $1.386 billion in rapid financing from the IMF at zero interest last month. Islamabad is hoping for more bailout packages from the World Bank and other development partners as it plans to file for debt relief from G20 countries and bilateral partners, mainly longtime ally China.

Pakistan's inflation eases as COVID-19 hammers economy

Shares snapped two days of gains and ended lower on Thursday due to concerns related to growth after data showed a surprise drop in industrial output for December and a rise in January inflation to a six-year high.

The broader NSE <a href="https://www.wionews.com/business-economy/sensex-nifty-close-lower-on-coronavirus-worries-279832">Nifty </a>50 index closed down 0.22 per cent&nbsp;at 12,174.65 and the benchmark S&amp;P BSE <a href="https://www.wionews.com/business-economy/sensex-nifty-close-lower-on-coronavirus-worries-279832">Sensex </a>declined 0.26&nbsp;per cent&nbsp;to 41,459.79.

Annual retail inflation of the&nbsp;economy rose to 7.59&nbsp;per cent&nbsp;in January, while December industrial output contracted 0.3 per cent, after rising for the first time in three months in November.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/indias-january-inflation-rises-to-759-per-cent-280325">India's January inflation rises to 7.59 per cent</a>

The data worried investors, already grappling with slowing growth. India's central bank has downwardly revised India's growth forecast for the first half of the next fiscal year to 5.5 per cent-6.0 per cent. The earlier projection was 5.9 per cent-6.3 per cent.

Most sectors traded negative, but the biggest drags were private-sector banks, with their main sub-index closing down 1.36 per cent.

The <a href="https://www.wionews.com/business-economy/sensex-nifty-close-lower-on-coronavirus-worries-279832">Nifty </a>financials index shed 0.73 per cent.

Among stocks, IndusInd Bank was the top laggard on the <a href="https://www.wionews.com/business-economy/sensex-nifty-close-lower-on-coronavirus-worries-279832">Nifty</a>, dropping 3.65 per cent, while Yes Bank emerged as the top gainer rising 5.68 per cent.

Shares snapped two days of gains and ended lower on Thursday due to concerns related to growth after data showed a surprise drop in industrial output for December and a rise in January inflation to a six-year high.

Shares snapped two days of gains and ended lower on Thursday due to concerns related to growth after data showed a surprise drop in industrial output for December and a rise in January inflation to a six-year high. The broader NSE Nifty 50 index closed down 0.22 per cent at 12,174.65 and the benchmark S&P BSE Sensex declined 0.26 per cent to 41,459.79. Annual retail inflation of the economy rose to 7.59 per cent in January, while December industrial output contracted 0.3 per cent, after rising for the first time in three months in November. Also read: India's January inflation rises to 7.59 per cent The data worried investors, already grappling with slowing growth. India's central bank has downwardly revised India's growth forecast for the first half of the next fiscal year to 5.5 per cent-6.0 per cent. The earlier projection was 5.9 per cent-6.3 per cent. Most sectors traded negative, but the biggest drags were private-sector banks, with their main sub-index closing down 1.36 per cent. The Nifty financials index shed 0.73 per cent. Among stocks, IndusInd Bank was the top laggard on the Nifty, dropping 3.65 per cent, while Yes Bank emerged as the top gainer rising 5.68 per cent.

Sensex, Nifty end lower on inflation, industrial output worries

The <a href="https://www.wionews.com/business-economy/retail-inflation-up-at-554-in-november-industrial-production-in-october-down-by-38-267913">retail inflation</a> in January accelerated to 7.59 per cent due to higher prices of food items, government data showed on Wednesday.

In December, the consumer price index (CPI) stood at 7.35 per cent.

Figures released by the Ministry of Statistics and Programme Implementation showed that retail inflation in rural areas was at 7.73 per cent last month and 7.39 per cent in urban areas.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/indian-markets-witness-fall-on-inflation-data-in-early-trade-telecom-worries-hurt-banks-261952">Indian markets witness fall on inflation data in early trade; telecom worries hurt banks</a>

Inflation in the food basket jumped to 13.63 per cent from 14.12 per cent in December 2019. Inflation in vegetables improved to 50.19 per cent as against 60.50 per cent in December 2019.

Besides, the prices of cereals and products grew at a pace of 5.25 per cent.

The Reserve Bank of India has kept its repo rate unchanged at 5.15 per cent in its February meet despite slowing growth and revised its inflation projections.

The central bank estimates it will range between 5 and 5.4 per cent in the first half of the new fiscal year 2020-21.

Meanwhile, industrial production contracted by 0.3 per cent in December due to a decline in the manufacturing sector against 2.5 per cent growth in the same month year ago.

"The quick estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of December 2019 stands at 133.5, which is 0.3 per cent lower as compared to the level in the month of December 2018," according to an official statement.

Electricity generation dipped by 0.1 per cent as against a growth of 4.5 per cent in December 2018 while the mining sector output grew by 5.4 per cent as compared to a contraction of 1 per cent earlier.

"The cumulative growth for the period of April to December 2019 over the corresponding period of the previous year stands at 0.5 per cent," it added

The retail inflation in January accelerated to 7.59 per cent due to higher prices of food items, government data showed on Wednesday. In December, the consumer price index (CPI) stood at 7.

The retail inflation in January accelerated to 7.59 per cent due to higher prices of food items, government data showed on Wednesday. In December, the consumer price index (CPI) stood at 7.35 per cent. Figures released by the Ministry of Statistics and Programme Implementation showed that retail inflation in rural areas was at 7.73 per cent last month and 7.39 per cent in urban areas. Also read: Indian markets witness fall on inflation data in early trade; telecom worries hurt banks Inflation in the food basket jumped to 13.63 per cent from 14.12 per cent in December 2019. Inflation in vegetables improved to 50.19 per cent as against 60.50 per cent in December 2019. Besides, the prices of cereals and products grew at a pace of 5.25 per cent. The Reserve Bank of India has kept its repo rate unchanged at 5.15 per cent in its February meet despite slowing growth and revised its inflation projections. The central bank estimates it will range between 5 and 5.4 per cent in the first half of the new fiscal year 2020-21. Meanwhile, industrial production contracted by 0.3 per cent in December due to a decline in the manufacturing sector against 2.5 per cent growth in the same month year ago. "The quick estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of December 2019 stands at 133.5, which is 0.3 per cent lower as compared to the level in the month of December 2018," according to an official statement. Electricity generation dipped by 0.1 per cent as against a growth of 4.5 per cent in December 2018 while the mining sector output grew by 5.4 per cent as compared to a contraction of 1 per cent earlier. "The cumulative growth for the period of April to December 2019 over the corresponding period of the previous year stands at 0.5 per cent," it added

India's January inflation rises to 7.59 per cent

Pakistani consumer price inflation rose to 14.56% in January, news agency Reuters report said quoting the statistics bureau on Saturday. CPI inflation had stood at 12.

Pakistani consumer price inflation rose to 14.56% in January, news agency Reuters report said quoting the statistics bureau on Saturday. CPI inflation had stood at 12.63% in December. Food items such as pulses, chicken and fresh vegetables were among the top drivers of inflation, underscoring the squeeze on household budgets, the report added. Pakistan's central bank in late January kept rates unchanged at 13.25%, citing strong inflationary pressures.

Pakistan annual inflation rate rises to 14.56% in January

Pakistani consumer price inflation rose to 14.56 per cent in January, the statistics bureau said on Saturday.

CPI inflation had stood at 12.63 per cent&nbsp;in December. Food items such as pulses, chicken and fresh vegetables were among the top drivers of inflation, underscoring the squeeze on household budgets.

Pakistan's central bank in late January kept rates unchanged at 13.25 per cent, citing strong inflationary pressures. 
&nbsp;

Pakistani consumer price inflation rose to 14.56 per cent in January, the statistics bureau said on Saturday. CPI inflation had stood at 12.63 per cent in December.

Pakistani consumer price inflation rose to 14.56 per cent in January, the statistics bureau said on Saturday. CPI inflation had stood at 12.63 per cent in December. Food items such as pulses, chicken and fresh vegetables were among the top drivers of inflation, underscoring the squeeze on household budgets. Pakistan's central bank in late January kept rates unchanged at 13.25 per cent, citing strong inflationary pressures.

Congress General Secretary <a href="https://www.wionews.com/india-news/priyanka-gandhi-extends-wishes-to-people-on-lohri-273925">Priyanka Gandi Vadra</a>&nbsp;on Tuesday targeted Prime Minister <a href="https://www.wionews.com/india-news/p-chidambaram-attacks-modi-govt-over-sliding-economy-and-unemployment-274135">Narendra Modi</a> led Centre for failing to control the rising prices of vegetables and essential commodities. 
 
The Congress leader also accused the Central government of not only picking pockets of the citizens but also taking away their livelihood.

"The prices of vegetables and other edible commodities are getting out of reach of the common man. What will the poor eat when vegetables, oil, pulses and flour turn expensive. The poor are not even getting employment due to the economic recession. The BJP government has not just picked the pockets of the poor but also kicked on their stomach," she tweeted in the morning in Hindi.

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Government of India: The annual rate of inflation, based on monthly WPI, stood at 2.59% (provisional) for the month of December, 2019 (over December,2018) as compared to 0.58% (provisional) for the previous month. <a href="https://t.co/Dx5xQB3WtB">pic.twitter.com/Dx5xQB3WtB</a>
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It should be noted that Vadra's comments came just a day after data showed that retail inflation rose to a five-and-half year high of 7.35 per cent in December last year.

Congress General Secretary Priyanka Gandi Vadra on Tuesday targeted Prime Minister Narendra Modi led Centre for failing to control the rising prices of vegetables and essential commodities.

Congress General Secretary Priyanka Gandi Vadra on Tuesday targeted Prime Minister Narendra Modi led Centre for failing to control the rising prices of vegetables and essential commodities. The Congress leader also accused the Central government of not only picking pockets of the citizens but also taking away their livelihood. "The prices of vegetables and other edible commodities are getting out of reach of the common man. What will the poor eat when vegetables, oil, pulses and flour turn expensive. The poor are not even getting employment due to the economic recession. The BJP government has not just picked the pockets of the poor but also kicked on their stomach," she tweeted in the morning in Hindi. Government of India: The annual rate of inflation, based on monthly WPI, stood at 2.59% (provisional) for the month of December, 2019 (over December,2018) as compared to 0.58% (provisional) for the previous month. pic.twitter.com/Dx5xQB3WtB — ANI (@ANI) January 14, 2020 × It should be noted that Vadra's comments came just a day after data showed that retail inflation rose to a five-and-half year high of 7.35 per cent in December last year.

Priyanka Gandhi slams Modi govt for 'rising inflation'

India's retail inflation rose to 7.35 per cent in December the highest in more than five years, triggering further growth concerns in the country amid a slowing economy.

The pick-up in inflation rate was mainly driven by rising food prices.

On February 1, Finance Minister Nirmala Sitharaman will present the annual budget for this year. According to a report, it&nbsp;budget is widely expected to increase spending on infrastructure and cut taxes.

The Reserve Bank of India (RBI) will hold its next policy review from February&nbsp;4 to 6.

Annual retail inflation in December remained above the RBI's medium-target of 4% for the third straight month, and also above the 5.54% posted in November and higher than the 6.20% forecast in a Reuters poll of economists.

Retail inflation had touched 7.39% in July 2014, according to Refinitiv data.

Retail food prices, which make up nearly half of India's inflation basket, increased 14.12% in December from a year earlier, against 10.01% in November. Some vegetable prices, including prices of onions that are a staple in Indian cooking, have increased more than four-fold since June.

The RBI cut its policy repo rate by 135 basis points last year before holding in December while warning against rising inflationary pressures.

Meanwhile, the government and central government have downwardly revised growth forecasts to an 11-year low of 5% for the current fiscal year ending in March.

(With inputs from Reuters)

India's retail inflation rose to 7.35 per cent in December the highest in more than five years, triggering further growth concerns in the country amid a slowing economy.

India's retail inflation rose to 7.35 per cent in December the highest in more than five years, triggering further growth concerns in the country amid a slowing economy. The pick-up in inflation rate was mainly driven by rising food prices. On February 1, Finance Minister Nirmala Sitharaman will present the annual budget for this year. According to a report, it budget is widely expected to increase spending on infrastructure and cut taxes. The Reserve Bank of India (RBI) will hold its next policy review from February 4 to 6. Annual retail inflation in December remained above the RBI's medium-target of 4% for the third straight month, and also above the 5.54% posted in November and higher than the 6.20% forecast in a Reuters poll of economists. Retail inflation had touched 7.39% in July 2014, according to Refinitiv data. Retail food prices, which make up nearly half of India's inflation basket, increased 14.12% in December from a year earlier, against 10.01% in November. Some vegetable prices, including prices of onions that are a staple in Indian cooking, have increased more than four-fold since June. The RBI cut its policy repo rate by 135 basis points last year before holding in December while warning against rising inflationary pressures. Meanwhile, the government and central government have downwardly revised growth forecasts to an 11-year low of 5% for the current fiscal year ending in March. (With inputs from Reuters)

Owing to rising food prices, India's December retail inflation surges to 7.35%

The retail inflation in November accelerated to 5.54 per cent due to higher prices of food items, government data showed on Thursday.

In October, the consumer price index (CPI) stood at 4.62 per cent. Figures released by the Ministry of Statistics and Programme Implementation showed that retail inflation in rural areas was at 5.27 per cent last month and 5.76 per cent in urban areas.

Food prices grew 10.01 per cent compared to 7.89 per cent in October. Inflation rate in cereals and products went up at 3.71 per cent against 2.16 per cent a month ago.

Vegetable inflation for November stood at 36 per cent against 26 per cent in October. On the other hand, pulses and products recorded inflation of 13.94 per cent in November against 11.72 per cent in October.

Meanwhile, industrial production shrank by 3.8 per cent in October due to poor performance by power, mining and manufacturing sectors.

Factory output as measured in terms of index of industrial production (IIP) had expanded 8.4 per cent in October last year. Power generation dipped sharply by 12.2 per cent in October compared to 10.8 per cent growth in the year-ago period.

Mining output also fell 8 per cent as against 7.3 per cent growth in the corresponding period last fiscal.&nbsp;

The retail inflation in November accelerated to 5.54 per cent due to higher prices of food items, government data showed on Thursday. In October, the consumer price index (CPI) stood at 4.

The retail inflation in November accelerated to 5.54 per cent due to higher prices of food items, government data showed on Thursday. In October, the consumer price index (CPI) stood at 4.62 per cent. Figures released by the Ministry of Statistics and Programme Implementation showed that retail inflation in rural areas was at 5.27 per cent last month and 5.76 per cent in urban areas. Food prices grew 10.01 per cent compared to 7.89 per cent in October. Inflation rate in cereals and products went up at 3.71 per cent against 2.16 per cent a month ago. Vegetable inflation for November stood at 36 per cent against 26 per cent in October. On the other hand, pulses and products recorded inflation of 13.94 per cent in November against 11.72 per cent in October. Meanwhile, industrial production shrank by 3.8 per cent in October due to poor performance by power, mining and manufacturing sectors. Factory output as measured in terms of index of industrial production (IIP) had expanded 8.4 per cent in October last year. Power generation dipped sharply by 12.2 per cent in October compared to 10.8 per cent growth in the year-ago period. Mining output also fell 8 per cent as against 7.3 per cent growth in the corresponding period last fiscal.

Retail inflation up at 5.54% in November, industrial production in October down by 3.8%

Haiti needs international support to tackle an unfolding humanitarian crisis, President Jovenel Moise said in an interview, two months into anti-government protests that have exacerbated food insecurity in the Americas' poorest nation.

Moise also told Reuters he was holding closed-door talks with civil society groups and the private sector, as well as radical and moderate members of the opposition in a bid to break political gridlock by creating a government of unity.

However the 51-year-old president - who faces widespread anger over galloping inflation, rampant insecurity and allegations of corruption - would not say with whom he was talking. Haiti's leading opposition parties have for months said the time for dialogue is over.

"We are in the midst of a humanitarian crisis," Moise said in the interview on Friday in the garden of his home in the hillside suburb of Petionville, overlooking Port-au-Prince and the Caribbean sea. "We need international support to get through this crisis."

More than one-in-three Haitians need urgent assistance to meet their daily food requirements, meaning nearly 3.7 million people, the U.N. World Food Program (WFP) said earlier this month.

But aid organizations are struggling to provide relief due to protester barricades blocking roads, as well as gang violence and other crime. The WFP has said it is ready to launch air and maritime transport operations but needs to raise $2.9 million to do so.

Moise said his acting government had written to the Trump administration requesting aid last month and the US&nbsp;Agency for International Development agreed to provide 2,000 tonnes of food aid to address urgent needs.

The opposition accuses the United States, which has frequently determined the fate of Haitian politics, of propping up Moise and ignoring the people.

The US&nbsp;government has urged all stakeholders to work toward an inclusive dialogue without pre-conditions.

Fuel shortages in August sparked protests that have morphed into a fierce campaign against Moise that has shuttered businesses and schools and galvanized the political opposition.

While turnout in what has become Haiti's longest wave of demonstrations for years has weakened somewhat over the last two weeks, the opposition is calling for a nationwide protest on Monday, a bank holiday that commemorates a major battle of Haiti's independence war.&nbsp;

Moise said he started meeting "lots of people" behind closed doors a week and a half ago, rather than continuing to meet in public.

Two of the most prominent opposition leaders, Andre Michel and Moise Jean Charles, as well as the spokesman of the Episcopal Conference Father Loudeger Mazile, told Reuters they were not participating in the conversations and did not know of any significant figure or group that was.

Democratic void

Haiti has not had a government since March as parliament is required to ratify the president's choice of the prime minister and the minority opposition has blocked such a vote from taking place.

The opposition accuses Moise's ruling alliance of seeking to replace the previous prime minister because he was too keen on investigating the embezzlement of Venezuelan aid funds that could have sullied its members, including the president himself. Moise denies any wrongdoing.

The lack of a government, in turn, is preventing Haiti from accessing hundreds of millions of dollars in international aid funds as well as loans from the World Bank, Inter-American Bank and others earmarked for it.

From next year, it will no longer have a parliament either. The mandates of deputies and most senators ends in January and Haiti failed to hold legislative elections in October as required by the constitution.

"We don't want to govern the country without democratic institutions," said Moise. "But unfortunately it looks like we are headed in that direction and that's why today we are working on finding a political accord."

He reiterated that he had no intention of resigning or holding early elections.

Instead, he said, he wanted to carry out reforms including changing the constitution to strengthen the president's powers so he is not held hostage by parliament.

The presidency is weak under Haiti's current constitution as it was written in the wake of the dynastic dictatorships of Francois "Papa Doc" Duvalier and his son Jean-Claude "Baby Doc" Duvalier.

On the economic front, Moise said he hopes to implement stronger mechanisms to avoid tax and customs evasion to help reduce the ballooning budgetary deficit. This could in turn help bring down inflation of around 20 per cent.

On the investigation into the alleged embezzlement of Venezuelan aid funds, the president said his acting government was pressing for an update.

Moise's opponents, who say he disappeared from public sight at the start of the current crisis, criticize it as too little too late, nearly three years into his five-year mandate.

Haiti needs international support to tackle an unfolding humanitarian crisis, President Jovenel Moise said in an interview, two months into anti-government protests that have exacerbated food insecurity in the Americas' poorest nation.

Haiti needs international support to tackle an unfolding humanitarian crisis, President Jovenel Moise said in an interview, two months into anti-government protests that have exacerbated food insecurity in the Americas' poorest nation. Moise also told Reuters he was holding closed-door talks with civil society groups and the private sector, as well as radical and moderate members of the opposition in a bid to break political gridlock by creating a government of unity. However the 51-year-old president - who faces widespread anger over galloping inflation, rampant insecurity and allegations of corruption - would not say with whom he was talking. Haiti's leading opposition parties have for months said the time for dialogue is over. "We are in the midst of a humanitarian crisis," Moise said in the interview on Friday in the garden of his home in the hillside suburb of Petionville, overlooking Port-au-Prince and the Caribbean sea. "We need international support to get through this crisis." More than one-in-three Haitians need urgent assistance to meet their daily food requirements, meaning nearly 3.7 million people, the U.N. World Food Program (WFP) said earlier this month. But aid organizations are struggling to provide relief due to protester barricades blocking roads, as well as gang violence and other crime. The WFP has said it is ready to launch air and maritime transport operations but needs to raise $2.9 million to do so. Moise said his acting government had written to the Trump administration requesting aid last month and the US Agency for International Development agreed to provide 2,000 tonnes of food aid to address urgent needs. The opposition accuses the United States, which has frequently determined the fate of Haitian politics, of propping up Moise and ignoring the people. The US government has urged all stakeholders to work toward an inclusive dialogue without pre-conditions. Fuel shortages in August sparked protests that have morphed into a fierce campaign against Moise that has shuttered businesses and schools and galvanized the political opposition. While turnout in what has become Haiti's longest wave of demonstrations for years has weakened somewhat over the last two weeks, the opposition is calling for a nationwide protest on Monday, a bank holiday that commemorates a major battle of Haiti's independence war. Moise said he started meeting "lots of people" behind closed doors a week and a half ago, rather than continuing to meet in public. Two of the most prominent opposition leaders, Andre Michel and Moise Jean Charles, as well as the spokesman of the Episcopal Conference Father Loudeger Mazile, told Reuters they were not participating in the conversations and did not know of any significant figure or group that was. Democratic void Haiti has not had a government since March as parliament is required to ratify the president's choice of the prime minister and the minority opposition has blocked such a vote from taking place. The opposition accuses Moise's ruling alliance of seeking to replace the previous prime minister because he was too keen on investigating the embezzlement of Venezuelan aid funds that could have sullied its members, including the president himself. Moise denies any wrongdoing. The lack of a government, in turn, is preventing Haiti from accessing hundreds of millions of dollars in international aid funds as well as loans from the World Bank, Inter-American Bank and others earmarked for it. From next year, it will no longer have a parliament either. The mandates of deputies and most senators ends in January and Haiti failed to hold legislative elections in October as required by the constitution. "We don't want to govern the country without democratic institutions," said Moise. "But unfortunately it looks like we are headed in that direction and that's why today we are working on finding a political accord." He reiterated that he had no intention of resigning or holding early elections. Instead, he said, he wanted to carry out reforms including changing the constitution to strengthen the president's powers so he is not held hostage by parliament. The presidency is weak under Haiti's current constitution as it was written in the wake of the dynastic dictatorships of Francois "Papa Doc" Duvalier and his son Jean-Claude "Baby Doc" Duvalier. On the economic front, Moise said he hopes to implement stronger mechanisms to avoid tax and customs evasion to help reduce the ballooning budgetary deficit. This could in turn help bring down inflation of around 20 per cent. On the investigation into the alleged embezzlement of Venezuelan aid funds, the president said his acting government was pressing for an update. Moise's opponents, who say he disappeared from public sight at the start of the current crisis, criticize it as too little too late, nearly three years into his five-year mandate.

Haiti's president calls for support as humanitarian crisis looms

India's retail inflation rate rose to 4.62 per cent in October, driven by higher food prices, the government said on Wednesday.

Annual retail inflation in October was higher compared with 3.99 per cent in the previous month and analysts' forecasts.

Analysts polled by Reuters had forecast a retail inflation rate of 4.25 per cent&nbsp;for October.

"This was expected given the spikes in vegetables, meat &amp; fish and egg prices due to disruption in transportation caused by excessive and unpredictable rains. Inflation in pulses too is on the higher side due to demand-supply mismatch," said&nbsp;Rupa Rege NITSURE, chief economist, L&amp;T&nbsp;financial holdings, Mumbai

"However, core inflation has collapsed to 3.44 per cent in October versus 4.01 per cent&nbsp;in September due to broad based weakness in demand. While the RBI (Reserve Bank of India) will continue to provide comfort on the liquidity front, it makes sense to take a pause in the rate cutting cycle."

"The need of the hour is to boost investment confidence at the individual sector level through corrective measures and a fiscal boost. India needs to focus on growth and arrest the deflationary trends."

We think the current underlying growth-inflation mix continues to be favourable for counter-cyclical monetary stance,"&nbsp;Madhavi Arora, Edelweiss securities, Mumbai.

"The domestic demand state, as reflected in various activity indicators, has weakened further in recent months, while fragile external growth backdrop convolutes the domestic slowdown further. We think the monetary accommodation has further steam of 50-65bps cut more in the cycle, contingent on data outcomes."

"We will closely watch out for the evolution of inflation amid various domestic and global idiosyncrasies, and fiscal fragilities that could impact the MPC's (Monetary Policy Committee's) reaction function."

India's retail inflation rate rose to 4.62 per cent in October, driven by higher food prices, the government said on Wednesday. Annual retail inflation in October was higher compared with 3.

India's retail inflation rate rose to 4.62 per cent in October, driven by higher food prices, the government said on Wednesday. Annual retail inflation in October was higher compared with 3.99 per cent in the previous month and analysts' forecasts. Analysts polled by Reuters had forecast a retail inflation rate of 4.25 per cent for October. "This was expected given the spikes in vegetables, meat & fish and egg prices due to disruption in transportation caused by excessive and unpredictable rains. Inflation in pulses too is on the higher side due to demand-supply mismatch," said Rupa Rege NITSURE, chief economist, L&T financial holdings, Mumbai "However, core inflation has collapsed to 3.44 per cent in October versus 4.01 per cent in September due to broad based weakness in demand. While the RBI (Reserve Bank of India) will continue to provide comfort on the liquidity front, it makes sense to take a pause in the rate cutting cycle." "The need of the hour is to boost investment confidence at the individual sector level through corrective measures and a fiscal boost. India needs to focus on growth and arrest the deflationary trends." We think the current underlying growth-inflation mix continues to be favourable for counter-cyclical monetary stance," Madhavi Arora, Edelweiss securities, Mumbai. "The domestic demand state, as reflected in various activity indicators, has weakened further in recent months, while fragile external growth backdrop convolutes the domestic slowdown further. We think the monetary accommodation has further steam of 50-65bps cut more in the cycle, contingent on data outcomes." "We will closely watch out for the evolution of inflation amid various domestic and global idiosyncrasies, and fiscal fragilities that could impact the MPC's (Monetary Policy Committee's) reaction function."

India's October retail inflation rises to 4.62 per cent

Indian retail inflation probably exceeded the Reserve Bank of India's ( RBI) medium-term target of 4 per cent&nbsp;in October for the first time in 15 months, mainly because of rising vegetable prices, a Reuters poll of economists showed.

Prices of most vegetables climbed during the month as monsoon downpours delayed harvests and disrupted supplies. That was despite a government ban on onion exports, a key component in the Indian diet.

Overall food prices - the biggest chunk of the consumer price basket - also rose in October.

The November 4-7 Reuters poll of 39 economists forecast annual consumer price inflation rose to 4.25 per cent&nbsp;in October, its highest since June 2018 and above 3.99 per cent in September.

Nearly 85 per cent of respondents forecast retail inflation, due on November&nbsp;12, to breach the RBI's medium-term target.

"Vegetable prices, particularly that of onions and tomatoes, will contribute significantly to the rise in inflation," said Teresa John, an economist at Nirmal Bang, a retail brokerage.

"We expect the RBI to maintain its easing bias on the back of sluggish growth and weak core inflation pressures despite rising headline inflation led by food prices."

The RBI has cut its key interest rate by a cumulative 135 basis points this year to 5.15 per cent. The central bank is expected to cut the repo rate in December for the sixth meeting in a row, according to a separate Reuters poll. That view primarily stems from a slowing economy.

Despite easy monetary and fiscal policy, recent business surveys indicate the economy, which slowed to a six-year low of 5 per cent growth during the second quarter, is still struggling and is not expected to recover anytime soon.

If those forecasts are realised, it will be the first time since October 2016 the RBI has cut rates even though inflation is above the central bank's medium-term target.

"I think their (RBI) objective now and their policy equation is focused on reviving growth, and they have been very forthcoming in communicating that," said Sakshi Gupta, senior India economist at HDFC Bank.

"So, I think they still have space to cut rates further right now - given whatever the dynamics of inflation are."

The wholesale price index probably remained flat last month, the lowest in nearly three and a half years. The WPI was the preferred gauge for the RBI before the consumer price index was introduced on early 2012.&nbsp;&nbsp; &nbsp;

Indian retail inflation probably exceeded the Reserve Bank of India's ( RBI) medium-term target of 4 per cent in October for the first time in 15 months, mainly because of rising vegetable prices, a Reuters poll of economists showed.

Indian retail inflation probably exceeded the Reserve Bank of India's ( RBI) medium-term target of 4 per cent in October for the first time in 15 months, mainly because of rising vegetable prices, a Reuters poll of economists showed. Prices of most vegetables climbed during the month as monsoon downpours delayed harvests and disrupted supplies. That was despite a government ban on onion exports, a key component in the Indian diet. Overall food prices - the biggest chunk of the consumer price basket - also rose in October. The November 4-7 Reuters poll of 39 economists forecast annual consumer price inflation rose to 4.25 per cent in October, its highest since June 2018 and above 3.99 per cent in September. Nearly 85 per cent of respondents forecast retail inflation, due on November 12, to breach the RBI's medium-term target. "Vegetable prices, particularly that of onions and tomatoes, will contribute significantly to the rise in inflation," said Teresa John, an economist at Nirmal Bang, a retail brokerage. "We expect the RBI to maintain its easing bias on the back of sluggish growth and weak core inflation pressures despite rising headline inflation led by food prices." The RBI has cut its key interest rate by a cumulative 135 basis points this year to 5.15 per cent. The central bank is expected to cut the repo rate in December for the sixth meeting in a row, according to a separate Reuters poll. That view primarily stems from a slowing economy. Despite easy monetary and fiscal policy, recent business surveys indicate the economy, which slowed to a six-year low of 5 per cent growth during the second quarter, is still struggling and is not expected to recover anytime soon. If those forecasts are realised, it will be the first time since October 2016 the RBI has cut rates even though inflation is above the central bank's medium-term target. "I think their (RBI) objective now and their policy equation is focused on reviving growth, and they have been very forthcoming in communicating that," said Sakshi Gupta, senior India economist at HDFC Bank. "So, I think they still have space to cut rates further right now - given whatever the dynamics of inflation are." The wholesale price index probably remained flat last month, the lowest in nearly three and a half years. The WPI was the preferred gauge for the RBI before the consumer price index was introduced on early 2012.

India's inflation probably breached RBI target last month: Poll

Eurozone inflation slowed in September by more than previously estimated to its slowest pace in nearly three years, the European Union statistics agency said on Wednesday, in a new warning on the state of the bloc's economy.

Eurostat said prices in the 19-country currency area grew by 0.8 per cent&nbsp;on the year, revising down its earlier estimate of a 0.9 per cent&nbsp;rate. That also defied the market consensus of a 0.9 per cent&nbsp;growth.

In a separate release, Eurostat said on Wednesday that the bloc's trade surplus with the rest of the world rose to $16.2 billion&nbsp;in August, from 11.9 billion the previous year, as euro zone's imports dropped more than its declining exports.

The revised inflation reading marked a more pronounced slowdown from the 1.0 per cent&nbsp;growth in August and was the lowest rate since November 2016 when prices grew by 0.6 per cent&nbsp;in the bloc.

The new drop is likely to raise new concerns on the state of the eurozone economy and could reignite the debate within the European Central Bank on how to pursue its goal of keeping inflation below, but close to 2 per cent&nbsp;over the medium term.

The revision was due to lower-than-expected inflation for industrial products, in a fresh worrying sign for the bloc's manufacturing sector which faces drops in output and a fall in confidence.

Prices for industrial goods, excluding energy, went up by a mere 0.2 per cent&nbsp;on the year in September, Eurostat said, revising its earlier estimate of a 0.3 per cent&nbsp;increase.

Energy prices were confirmed falling by 1.8 per cent, while inflation in the service sector, the largest in the bloc, rose by 1.5 per cent&nbsp;in line with previous estimates.

A narrower inflation indicator which strips out volatile energy and unprocessed food prices, and is monitored closely by the ECB for its policy decisions, rose to 1.2 per cent&nbsp;in September from 1.1 per cent&nbsp;in August, in line with Eurostat's earlier estimates released on October&nbsp;1.

Excluding energy, food, alcohol and tobacco, inflation grew 1.0 per cent&nbsp;in September, Eurostat said, confirming its previous figures.

On the month, headline inflation grew 0.2 per cent&nbsp;in the bloc, also in line with earlier estimates.

Eurozone inflation slowed in September by more than previously estimated to its slowest pace in nearly three years, the European Union statistics agency said on Wednesday, in a new warning on the state of the bloc's economy.

Eurozone inflation slowed in September by more than previously estimated to its slowest pace in nearly three years, the European Union statistics agency said on Wednesday, in a new warning on the state of the bloc's economy. Eurostat said prices in the 19-country currency area grew by 0.8 per cent on the year, revising down its earlier estimate of a 0.9 per cent rate. That also defied the market consensus of a 0.9 per cent growth. In a separate release, Eurostat said on Wednesday that the bloc's trade surplus with the rest of the world rose to $16.2 billion in August, from 11.9 billion the previous year, as euro zone's imports dropped more than its declining exports. The revised inflation reading marked a more pronounced slowdown from the 1.0 per cent growth in August and was the lowest rate since November 2016 when prices grew by 0.6 per cent in the bloc. The new drop is likely to raise new concerns on the state of the eurozone economy and could reignite the debate within the European Central Bank on how to pursue its goal of keeping inflation below, but close to 2 per cent over the medium term. The revision was due to lower-than-expected inflation for industrial products, in a fresh worrying sign for the bloc's manufacturing sector which faces drops in output and a fall in confidence. Prices for industrial goods, excluding energy, went up by a mere 0.2 per cent on the year in September, Eurostat said, revising its earlier estimate of a 0.3 per cent increase. Energy prices were confirmed falling by 1.8 per cent, while inflation in the service sector, the largest in the bloc, rose by 1.5 per cent in line with previous estimates. A narrower inflation indicator which strips out volatile energy and unprocessed food prices, and is monitored closely by the ECB for its policy decisions, rose to 1.2 per cent in September from 1.1 per cent in August, in line with Eurostat's earlier estimates released on October 1. Excluding energy, food, alcohol and tobacco, inflation grew 1.0 per cent in September, Eurostat said, confirming its previous figures. On the month, headline inflation grew 0.2 per cent in the bloc, also in line with earlier estimates.

Eurozone September inflation unexpectedly revised down to 0.8%

Indian retail inflation probably reached a 12-month high in September, still leaving room for further interest rate cuts because it's expected to remain below the Reserve Bank of India's target, according to a Reuters poll.

An extended monsoon has delayed harvests and interrupted the supplies of vegetables like onions, a key ingredient in Indian kitchens. That probably pushed retail inflation higher last month; food prices account for over half the inflation basket.

Any previous sharp rise in onion prices has been painful for Indian policymakers. To keep that price surge from spiralling out of control, as it did a few years ago, the government has banned onion exports.

The October&nbsp;4-9 poll of over 40 economists predicted India's annual consumer inflation rose to 3.7 per cent&nbsp;in September, its highest in a year. Forecasts ranged from 3.10&nbsp;per cent&nbsp;to 3.92 per cent. Only two economists expected inflation to be lower than August's 3.21 per cent.

If the consensus is right, inflation will come in below the RBI's medium-term target for 14 months in a row. The inflation data are due on October&nbsp;14.

"Headline consumer price inflation likely jumped in September on the back of a surge in onion prices. But that will hardly bring tears to the eyes of the RBI, as it is likely to have stayed below the 4.0&nbsp;per cent&nbsp;target," said Shilan Shah, senior India economist at Capital Economics.

"Another rate cut in December seems likely."

Subdued inflation and an economic slowdown have allowed the RBI to cut interest rates by a total of 135 basis points this year, including a 25-basis-point cut last week, making it the most aggressive central bank in Asia.

Economists in a separate Reuters poll said the central bank was not yet done with rate cuts.

"The RBI has been quite vocal about the fact that they would continue to support growth and they have left the door open for more policy cuts," Sakshi Gupta, senior India economist at HDFC Bank.

Indian retail inflation probably reached a 12-month high in September, still leaving room for further interest rate cuts because it's expected to remain below the Reserve Bank of India's target, according to a Reuters poll.

Indian retail inflation probably reached a 12-month high in September, still leaving room for further interest rate cuts because it's expected to remain below the Reserve Bank of India's target, according to a Reuters poll. An extended monsoon has delayed harvests and interrupted the supplies of vegetables like onions, a key ingredient in Indian kitchens. That probably pushed retail inflation higher last month; food prices account for over half the inflation basket. Any previous sharp rise in onion prices has been painful for Indian policymakers. To keep that price surge from spiralling out of control, as it did a few years ago, the government has banned onion exports. The October 4-9 poll of over 40 economists predicted India's annual consumer inflation rose to 3.7 per cent in September, its highest in a year. Forecasts ranged from 3.10 per cent to 3.92 per cent. Only two economists expected inflation to be lower than August's 3.21 per cent. If the consensus is right, inflation will come in below the RBI's medium-term target for 14 months in a row. The inflation data are due on October 14. "Headline consumer price inflation likely jumped in September on the back of a surge in onion prices. But that will hardly bring tears to the eyes of the RBI, as it is likely to have stayed below the 4.0 per cent target," said Shilan Shah, senior India economist at Capital Economics. "Another rate cut in December seems likely." Subdued inflation and an economic slowdown have allowed the RBI to cut interest rates by a total of 135 basis points this year, including a 25-basis-point cut last week, making it the most aggressive central bank in Asia. Economists in a separate Reuters poll said the central bank was not yet done with rate cuts. "The RBI has been quite vocal about the fact that they would continue to support growth and they have left the door open for more policy cuts," Sakshi Gupta, senior India economist at HDFC Bank.

India's inflation surged in September but won't 'bring tears' to RBI: Report

After years of soggy&nbsp;inflation&nbsp;and the long reign of&nbsp;<a href="https://www.wionews.com/world/new-delhi-tokyo-will-be-working-on-third-country-projects-in-indias-vicinity-says-indian-envoy-to-japan-230663">Japan's</a>&nbsp;tight-fisted shoppers, businesses in the world's third-largest economy are adopting new methods to lift prices, from artificial intelligence to simple packaging tweaks.

Despite many rounds of stimulus,&nbsp;Japan's&nbsp;policymakers have failed to jolt households out of the deflationary mindset that followed the 1990s property crash, which meant businesses refused to raise prices for fear of losing customers.

Demand-based dynamic pricing,&nbsp;however, has allowed some Japanese&nbsp;retailers to discretely bump up prices without triggering the kind of customer backlash seen in more blatant attempts at repricing in the past.

Yokohama Marinos, for example, a club in&nbsp;Japan's&nbsp;top football league, introduced artificial intelligence last year to more closely align ticket prices with demand.

"Previously, it was difficult to find the best prices between demand and value of each match," said Hiroshi Nagai, General Manager for fan relationships at the club.

"The most fascinating thing about dynamic pricing is that it can offer more choices to customers", Nagai added.

Dynamic pricing, or surge pricing, is common among data-driven businesses such as ride-hailing services but is a relatively new concept for most traditional Japanese&nbsp;firms.

Using the technology, the Marinos sold tickets for a popular seating area for a March 2 match at 7,400 Yen, two weeks before the game, but cut prices to as low as 4,000 yen to fill empty seats as the match approached.

Koji Kawashimo, a 34-year old who has been a Marinos fan for more than a decade, said he had no problem with his team adopting dynamic pricing.

"I would pay for what I like. I want to pay if it's worth it," he said.

Hotels are also introducing dynamic pricing in their room rates including Centurion International, which operates over 20 hotels in <a href="https://www.wionews.com/world/trump-says-the-us-reaches-trade-deals-with-japan-no-word-on-cars-250133">Japan</a>.

Centurion began using AI to collect information to charge higher prices when demand is strong and offer discounts when demand falls to reduce vacancies.

"The system provides us [with] information on competitors such as the pace of reservation, which is great. It's a big advantage," said Hironobu Bun, revenue manager at Centurion International.

Changing Mindsets

Economists believe that it will take more meaningful structural changes to&nbsp;Japan's&nbsp;economy to revive stagnant prices, which will, in turn, help businesses deal with sticky overheads and restore profits.

However, developments like the adoption of dynamic pricing lay the groundwork for more radical changes in&nbsp;how&nbsp;companies set prices for their goods and services.

"If dynamic pricing can change people's mindset so that they believe price can fluctuate more, there's a chance&nbsp;firms&nbsp;may be able to raise prices more easily where demand is strong," said Izuru Kato, chief economist at Totan Research.

At the same time, other businesses are looking at more cosmetic ways to drive the consumer to accept higher prices.

<a href="https://www.wionews.com/world/japan-helping-india-to-become-5-trillion-economy-pm-modi-to-indian-diaspora-230864">Japan's</a>&nbsp;"gyudon" beef rice bowls have become a symbol of the country's deflation due to their aggressively low prices. But some outlets are turning that trope around by offering "premium bowls" with better-quality meat for more than double the standard price.

The 500,000 "sukiyaki" beef rice bowls offered by fast-food chain Yoshinoya Holdings Co in August were sold out in about two weeks - much faster than the company had expected - despite a price tag of 860 yen per bowl, double that of a standard dish.

"The customer response has been good. If they see value in it, they would pay even if price is a little higher," said Yuji Terasawa, a spokesman of the company.

While such tactics seem to work, they take careful planning and preparation. Fast&nbsp;Retailing Co Ltd, whose budget clothing chain Uniqlo boomed during the country's deflation era, learned the hard way when sales slumped after it raised prices in 2014.&nbsp;

In contrast, discount barber chain QB House earlier this year raised prices for a 10-minute haircut to 1,200 yen from 1,080 Yen, explaining it was needed to increase salaries to secure better-trained barbers.

That move followed eight years of checking the customer mood through regular marketing surveys.

While the hike triggered a 2 per cent&nbsp;decline in customers from the previous year, the drop was much smaller than the company's projection of a 6 per cent&nbsp;fall.

"The price of a haircut is still lower than other places," said Kazuaki Mimura, a 34-year-old employee of a service-sector firm.

"I'm willing to accept a hike of a few hundred yen because the service here is quick and my haircut is done properly."

After years of soggy inflation and the long reign of Japan's tight-fisted shoppers, businesses in the world's third-largest economy are adopting new methods to lift prices, from artificial intelligence to simple packaging tweaks.

After years of soggy inflation and the long reign of Japan's tight-fisted shoppers, businesses in the world's third-largest economy are adopting new methods to lift prices, from artificial intelligence to simple packaging tweaks. Despite many rounds of stimulus, Japan's policymakers have failed to jolt households out of the deflationary mindset that followed the 1990s property crash, which meant businesses refused to raise prices for fear of losing customers. Demand-based dynamic pricing, however, has allowed some Japanese retailers to discretely bump up prices without triggering the kind of customer backlash seen in more blatant attempts at repricing in the past. Yokohama Marinos, for example, a club in Japan's top football league, introduced artificial intelligence last year to more closely align ticket prices with demand. "Previously, it was difficult to find the best prices between demand and value of each match," said Hiroshi Nagai, General Manager for fan relationships at the club. "The most fascinating thing about dynamic pricing is that it can offer more choices to customers", Nagai added. Dynamic pricing, or surge pricing, is common among data-driven businesses such as ride-hailing services but is a relatively new concept for most traditional Japanese firms. Using the technology, the Marinos sold tickets for a popular seating area for a March 2 match at 7,400 Yen, two weeks before the game, but cut prices to as low as 4,000 yen to fill empty seats as the match approached. Koji Kawashimo, a 34-year old who has been a Marinos fan for more than a decade, said he had no problem with his team adopting dynamic pricing. "I would pay for what I like. I want to pay if it's worth it," he said. Hotels are also introducing dynamic pricing in their room rates including Centurion International, which operates over 20 hotels in Japan. Centurion began using AI to collect information to charge higher prices when demand is strong and offer discounts when demand falls to reduce vacancies. "The system provides us [with] information on competitors such as the pace of reservation, which is great. It's a big advantage," said Hironobu Bun, revenue manager at Centurion International. Changing Mindsets Economists believe that it will take more meaningful structural changes to Japan's economy to revive stagnant prices, which will, in turn, help businesses deal with sticky overheads and restore profits. However, developments like the adoption of dynamic pricing lay the groundwork for more radical changes in how companies set prices for their goods and services. "If dynamic pricing can change people's mindset so that they believe price can fluctuate more, there's a chance firms may be able to raise prices more easily where demand is strong," said Izuru Kato, chief economist at Totan Research. At the same time, other businesses are looking at more cosmetic ways to drive the consumer to accept higher prices. Japan's "gyudon" beef rice bowls have become a symbol of the country's deflation due to their aggressively low prices. But some outlets are turning that trope around by offering "premium bowls" with better-quality meat for more than double the standard price. The 500,000 "sukiyaki" beef rice bowls offered by fast-food chain Yoshinoya Holdings Co in August were sold out in about two weeks - much faster than the company had expected - despite a price tag of 860 yen per bowl, double that of a standard dish. "The customer response has been good. If they see value in it, they would pay even if price is a little higher," said Yuji Terasawa, a spokesman of the company. While such tactics seem to work, they take careful planning and preparation. Fast Retailing Co Ltd, whose budget clothing chain Uniqlo boomed during the country's deflation era, learned the hard way when sales slumped after it raised prices in 2014. In contrast, discount barber chain QB House earlier this year raised prices for a 10-minute haircut to 1,200 yen from 1,080 Yen, explaining it was needed to increase salaries to secure better-trained barbers. That move followed eight years of checking the customer mood through regular marketing surveys. While the hike triggered a 2 per cent decline in customers from the previous year, the drop was much smaller than the company's projection of a 6 per cent fall. "The price of a haircut is still lower than other places," said Kazuaki Mimura, a 34-year-old employee of a service-sector firm. "I'm willing to accept a hike of a few hundred yen because the service here is quick and my haircut is done properly."

Inflation by stealth: How Japan's firms fight the frugal retail psyche

Finance Minister Nirmala Sitharaman on Saturday said that inflation is under control and there is a clear sign of revival of industrial production.

Addressing a press conference here, Sitharaman said inflation in the range of 2.5 to 4 per cent is considered safe and it has been held under four per cent.

Referring to industrial production, she said there was clear sign of revival in the first quarter of 2019-20.

"Revival of fixed investment is also showing a positive picture," she added.

The minister said there was also a clear sign of revival of Foreign Direct Investment. She said that reserves have gone up in August-end and one of the best-level of reserves was being maintained.

Finance Minister Nirmala Sitharaman on Saturday said that inflation is under control and there is a clear sign of revival of industrial production. Addressing a press conference here, Sitharaman said inflation in the range of 2.

Finance Minister Nirmala Sitharaman on Saturday said that inflation is under control and there is a clear sign of revival of industrial production. Addressing a press conference here, Sitharaman said inflation in the range of 2.5 to 4 per cent is considered safe and it has been held under four per cent. Referring to industrial production, she said there was clear sign of revival in the first quarter of 2019-20. "Revival of fixed investment is also showing a positive picture," she added. The minister said there was also a clear sign of revival of Foreign Direct Investment. She said that reserves have gone up in August-end and one of the best-level of reserves was being maintained.

Inflation under control, clear sign of revival of industrial production: Sitharaman

Argentina's inflation rate is expected at 53 per cent in December 2019, but will fall back to 34 per cent the following year, according to projections in the forthcoming 2020 budget, treasury officials said on Wednesday.

The budget also predicts Argentina's economy, Latin America's third-largest, will contract by an average of 2.6 per cent in 2019 but will return to growth of 1 per cent in 2020.

The treasury officials, who shared the figures but asked not to be identified, said the budget would be sent to Congress on September 16.

The much anticipated fiscal plans will figure prominently into Argentina's efforts to stem an economic crisis that has plunged a third of its citizens into poverty and ratcheted up inflation.

Tight monetary policy had helped tame inflation in the months before the August 11 primary election. But the peso crashed along with the country's bonds after Peronist Alberto Fernandez trounced market-friendly president Mauricio Macri, sending consumer prices spiralling again.

The shock result spooked investors, who worry especially about Fernandez's running-mate, ex-President Cristina Fernandez de Kirchner, recalling the interventionist policies she imposed during her two terms between 2007 and 2015.

The peso lost a quarter of its value against the dollar in August and the central bank burned up reserves to stem the decline. Macri ultimately imposed currency controls, and the peso has steadied over the last week.

The 2020 budget predicts the average exchange rate will weaken to 67 pesos per dollar in 2020, from 48 pesos to the dollar in 2019, the treasury officials said.

The current account deficit is expected to hit 0.9 per cent of GDP in 2019, then revert to a surplus of 0.4 per cent of GDP in 2020.

The budget also forecasts a trade surplus of $16.1 bln in 2019, increasing slightly to $17.5 bln in 2020, the officials said.

Argentina's inflation rate is expected at 53 per cent in December 2019, but will fall back to 34 per cent the following year, according to projections in the forthcoming 2020 budget, treasury officials said on Wednesday.

Argentina's inflation rate is expected at 53 per cent in December 2019, but will fall back to 34 per cent the following year, according to projections in the forthcoming 2020 budget, treasury officials said on Wednesday. The budget also predicts Argentina's economy, Latin America's third-largest, will contract by an average of 2.6 per cent in 2019 but will return to growth of 1 per cent in 2020. The treasury officials, who shared the figures but asked not to be identified, said the budget would be sent to Congress on September 16. The much anticipated fiscal plans will figure prominently into Argentina's efforts to stem an economic crisis that has plunged a third of its citizens into poverty and ratcheted up inflation. Tight monetary policy had helped tame inflation in the months before the August 11 primary election. But the peso crashed along with the country's bonds after Peronist Alberto Fernandez trounced market-friendly president Mauricio Macri, sending consumer prices spiralling again. The shock result spooked investors, who worry especially about Fernandez's running-mate, ex-President Cristina Fernandez de Kirchner, recalling the interventionist policies she imposed during her two terms between 2007 and 2015. The peso lost a quarter of its value against the dollar in August and the central bank burned up reserves to stem the decline. Macri ultimately imposed currency controls, and the peso has steadied over the last week. The 2020 budget predicts the average exchange rate will weaken to 67 pesos per dollar in 2020, from 48 pesos to the dollar in 2019, the treasury officials said. The current account deficit is expected to hit 0.9 per cent of GDP in 2019, then revert to a surplus of 0.4 per cent of GDP in 2020. The budget also forecasts a trade surplus of $16.1 bln in 2019, increasing slightly to $17.5 bln in 2020, the officials said.

Argentina inflation expected at 53 per cent in December 2019: treasury officials

Argentina's inflation rate is expected at 53 per cent in December 2019, but will fall back to 34 per cent the following year, according to projections in the forthcoming 2020 budget, treasury officials said on Wednesday.

The budget also predicts Argentina's economy, Latin America's third-largest, will contract by an average of 2.6 per cent in 2019, but will return to growth of 1 per cent in 2020.

The treasury officials, who shared the figures but asked not to be identified, said the budget would be sent to Congress on Sept. 16. The much anticipated fiscal plans will figure prominently into Argentina's efforts to stem an economic crisis that has plunged a third of its citizens into poverty and ratcheted up inflation.

Tight monetary policy had helped tame inflation in the months before the August 11 primary election. But the peso crashed along with the country's bonds after Peronist Alberto Fernandez trounced market-friendly president Mauricio Macri, sending consumer prices spiraling again.

The shock result spooked investors, who worry especially about Fernandez's running-mate, ex-President Cristina Fernandez de Kirchner, recalling the interventionist policies she imposed during her two terms between 2007 and 2015.

The peso lost a quarter of its value against the dollar in August and the central bank burned up reserves to stem the decline. Macri ultimately imposed currency controls, and the peso has steadied over the last week.

The 2020 budget predicts the average exchange rate will weaken to 67 pesos per dollar in 2020, from 48 pesos to the dollar in 2019, the treasury officials said.

The current account deficit is expected to hit 0.9% of GDP in 2019, then revert to a surplus of 0.4 per cent of GDP in 2020.

The budget also forecast a trade surplus of $16.1 bln in 2019, increasing slightly to $17.5 bln in 2020, the officials said.

Argentina's inflation rate is expected at 53 per cent in December 2019, but will fall back to 34 per cent the following year, according to projections in the forthcoming 2020 budget, treasury officials said on Wednesday. The budget also predicts Argentina's economy, Latin America's third-largest, will contract by an average of 2.6 per cent in 2019, but will return to growth of 1 per cent in 2020. The treasury officials, who shared the figures but asked not to be identified, said the budget would be sent to Congress on Sept. 16. The much anticipated fiscal plans will figure prominently into Argentina's efforts to stem an economic crisis that has plunged a third of its citizens into poverty and ratcheted up inflation. Tight monetary policy had helped tame inflation in the months before the August 11 primary election. But the peso crashed along with the country's bonds after Peronist Alberto Fernandez trounced market-friendly president Mauricio Macri, sending consumer prices spiraling again. The shock result spooked investors, who worry especially about Fernandez's running-mate, ex-President Cristina Fernandez de Kirchner, recalling the interventionist policies she imposed during her two terms between 2007 and 2015. The peso lost a quarter of its value against the dollar in August and the central bank burned up reserves to stem the decline. Macri ultimately imposed currency controls, and the peso has steadied over the last week. The 2020 budget predicts the average exchange rate will weaken to 67 pesos per dollar in 2020, from 48 pesos to the dollar in 2019, the treasury officials said. The current account deficit is expected to hit 0.9% of GDP in 2019, then revert to a surplus of 0.4 per cent of GDP in 2020. The budget also forecast a trade surplus of $16.1 bln in 2019, increasing slightly to $17.5 bln in 2020, the officials said.

Argentina inflation expected at 53% in December 2019: Treasury officials

Indian shares settled higher on Wednesday, ahead of key inflation data, with shares of Yes Bank Ltd witnessing its best session in over six months.

The broader NSE Nifty ended 0.3 per cent&nbsp;higher at 11,035.70, while the benchmark BSE Sensex closed up 0.34 per cent&nbsp;at 37,270.82.

Investors await consumer price index data due on Thursday.

The country's retail inflation likely rose to a 10-month high in August, while staying below the Reserve Bank of India's medium-term target of 4 per cent, a Reuters poll of economists showed.

The Nifty banking index, which tracks both state-owned and private-sector lenders, closed nearly 1 per cent&nbsp;higher with Yes Bank shares gaining as much as 19.57 per cent, it is&nbsp;biggest intraday spike since February&nbsp;14.

Automakers were among the top gainers on the blue-chip index, with Tata Motors Ltd finishing the session 10.6 per cent&nbsp;higher and Eicher Motors Ltd closing nearly 5 per cent&nbsp;up.

Real estate stocks gained too, with the Nifty real estate index adding 4.14 per cent, its biggest intraday rise since May.

Indian shares settled higher on Wednesday, ahead of key inflation data, with shares of Yes Bank Ltd witnessing its best session in over six months. The broader NSE Nifty ended 0.

Indian shares settled higher on Wednesday, ahead of key inflation data, with shares of Yes Bank Ltd witnessing its best session in over six months. The broader NSE Nifty ended 0.3 per cent higher at 11,035.70, while the benchmark BSE Sensex closed up 0.34 per cent at 37,270.82. Investors await consumer price index data due on Thursday. The country's retail inflation likely rose to a 10-month high in August, while staying below the Reserve Bank of India's medium-term target of 4 per cent, a Reuters poll of economists showed. The Nifty banking index, which tracks both state-owned and private-sector lenders, closed nearly 1 per cent higher with Yes Bank shares gaining as much as 19.57 per cent, it is biggest intraday spike since February 14. Automakers were among the top gainers on the blue-chip index, with Tata Motors Ltd finishing the session 10.6 per cent higher and Eicher Motors Ltd closing nearly 5 per cent up. Real estate stocks gained too, with the Nifty real estate index adding 4.14 per cent, its biggest intraday rise since May.

Nifty, Sensex end higher; auto stocks among top gainers

&nbsp;US&nbsp;job growth slowed in July and wages picked up moderately, which together with an escalation in<a href="https://www.wionews.com/.../us-china-trade-war-is-making-china-stronger- 234526"> trade tensions between the United States and Chin</a>a could give the Federal Reserve ammunition to cut interest rates again next month.

The Labour Department's closely watched monthly employment report on Friday came a day after President Donald Trump announced an additional 10% tariff on $300 billion worth of Chinese imports starting September 1, a move that led financial markets to almost fully price in a rate cut in September.

The U.S. central bank on Wednesday cut its short-term interest rate for the first time since 2008. Fed Chairman Jerome Powell described the widely anticipated 25-basis-point monetary policy easing as insurance against downside risks to the 10-year-old economic expansion, the longest in history, from trade tensions and slowing global growth. (Full Story)

Nonfarm payrolls increased by 164,000 jobs last month, the government said.

The economy created 41,000 fewer jobs in May and June than previously reported. July's job gains were in line with economists' expectations.

The average workweek fell to its lowest level in nearly two years.

Before the release of the employment report, fed funds futures implied traders saw a 96% chance of the Fed cutting rates again next month, according to CME Group's FedWatch tool.

The US-China trade war is taking a toll on manufacturing, with production declining for two straight quarters.

Business investment has also been hit, contracting in the second quarter for the first time in more than three years and contributing to holding back the economy to a 2.1% annualized growth rate.

The economy grew at a 3.1% pace in the first quarter.

July payrolls marked a further deceleration in job growth from an average of 223,000 per month in 2018.

Economists say it is unclear whether the loss of momentum in hiring was due to ebbing demand for labour or a shortage of qualified workers.

Still, the pace of job growth remains well above the roughly 100,000 needed per month to keep up with growth in the working-age population.

The unemployment rate was unchanged at 3.7% in July.

Despite the lowest jobless rate in nearly 50 years, wage growth remains moderate, contributing to a tame inflation environment, which could be supportive of another rate cut next month.

Inflation has undershot the Fed's 2% target this year, rising 1.6% on a year-on-year basis in June after gaining 1.5% in May.

Average hourly earnings rose 8 cents, or 0.3% in July, after the same increase in June.

That lifted the annual increase in wages to 3.2% in July from 3.1% in June.

The trend in wage gains has slowed from late 2018 when wages were rising at their fastest rate in a decade.

Even with the step-down in job and wage gains, the labour market is supporting the economy as the stimulus from last year's $1.5 trillion tax cut package fades. Economic growth in the third quarter is seen at around a 1.5% rate.

Construction payrolls increased by 4,000 jobs after shooting up by 18,000 jobs in June.

Manufacturing employment rose by 16,000 jobs after increasing by 12,000 in June.

The strong manufacturing job gains are at odds with weakening activity in the sector.

A survey on Thursday showed manufacturing employment hit its lowest level since November 2016 in July.

The sector, which accounts for more than 12% of the US&nbsp;economy, is being hobbled by trade tensions, weakening global growth, an inventory bulge - concentrated in the automotive industry - and design problems at aerospace giant Boeing Co BA.N.

Factory workers put in fewer hours last month.

The manufacturing workweek dropped 0.3 hours to 40.4 hours, the lowest since November 2011.

That contributed to the overall average workweek falling to 34.3 hours, the fewest since September 2017, from 34.4 hours in June.

Government employment increased by 16,000 jobs in July, adding to June's gain of 14,000.

US job growth slowed in July and wages picked up moderately, which together with an escalation in trade tensions between the United States and China could give the Federal Reserve ammunition to cut interest rates again next month.

US job growth slowed in July and wages picked up moderately, which together with an escalation in trade tensions between the United States and China could give the Federal Reserve ammunition to cut interest rates again next month. The Labour Department's closely watched monthly employment report on Friday came a day after President Donald Trump announced an additional 10% tariff on $300 billion worth of Chinese imports starting September 1, a move that led financial markets to almost fully price in a rate cut in September. The U.S. central bank on Wednesday cut its short-term interest rate for the first time since 2008. Fed Chairman Jerome Powell described the widely anticipated 25-basis-point monetary policy easing as insurance against downside risks to the 10-year-old economic expansion, the longest in history, from trade tensions and slowing global growth. (Full Story) Nonfarm payrolls increased by 164,000 jobs last month, the government said. The economy created 41,000 fewer jobs in May and June than previously reported. July's job gains were in line with economists' expectations. The average workweek fell to its lowest level in nearly two years. Before the release of the employment report, fed funds futures implied traders saw a 96% chance of the Fed cutting rates again next month, according to CME Group's FedWatch tool. The US-China trade war is taking a toll on manufacturing, with production declining for two straight quarters. Business investment has also been hit, contracting in the second quarter for the first time in more than three years and contributing to holding back the economy to a 2.1% annualized growth rate. The economy grew at a 3.1% pace in the first quarter. July payrolls marked a further deceleration in job growth from an average of 223,000 per month in 2018. Economists say it is unclear whether the loss of momentum in hiring was due to ebbing demand for labour or a shortage of qualified workers. Still, the pace of job growth remains well above the roughly 100,000 needed per month to keep up with growth in the working-age population. The unemployment rate was unchanged at 3.7% in July. Despite the lowest jobless rate in nearly 50 years, wage growth remains moderate, contributing to a tame inflation environment, which could be supportive of another rate cut next month. Inflation has undershot the Fed's 2% target this year, rising 1.6% on a year-on-year basis in June after gaining 1.5% in May. Average hourly earnings rose 8 cents, or 0.3% in July, after the same increase in June. That lifted the annual increase in wages to 3.2% in July from 3.1% in June. The trend in wage gains has slowed from late 2018 when wages were rising at their fastest rate in a decade. Even with the step-down in job and wage gains, the labour market is supporting the economy as the stimulus from last year's $1.5 trillion tax cut package fades. Economic growth in the third quarter is seen at around a 1.5% rate. Construction payrolls increased by 4,000 jobs after shooting up by 18,000 jobs in June. Manufacturing employment rose by 16,000 jobs after increasing by 12,000 in June. The strong manufacturing job gains are at odds with weakening activity in the sector. A survey on Thursday showed manufacturing employment hit its lowest level since November 2016 in July. The sector, which accounts for more than 12% of the US economy, is being hobbled by trade tensions, weakening global growth, an inventory bulge - concentrated in the automotive industry - and design problems at aerospace giant Boeing Co BA.N. Factory workers put in fewer hours last month. The manufacturing workweek dropped 0.3 hours to 40.4 hours, the lowest since November 2011. That contributed to the overall average workweek falling to 34.3 hours, the fewest since September 2017, from 34.4 hours in June. Government employment increased by 16,000 jobs in July, adding to June's gain of 14,000.

US employment growth slows in July; wages pick up

India's retail <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/india-may-inflation-hits-seven-month-high-still-room-for-rate-cut-226580&amp;sa=U&amp;ved=2ahUKEwj8i4LGtq_jAhVMf30KHe3VCHAQFjAAegQIARAC&amp;usg=AOvVaw1B-RmHGVXwrK5LtWOFtLcf">inflation rate</a> hit an eight-month high in June on higher food prices, government data showed on Friday, but stayed below the central bank's medium-term target of 4% for an eleventh straight month. Annual retail inflation in June was 3.18%, up from 3.05% in the previous month, but below analyst forecasts.

A Reuters poll had predicted a retail inflation rate of 3.20% for June.

Meanwhile, data showed the country's industrial output climbed 3.1% in May from a year earlier, but lagged forecast.

"CPI inflation has come in much below market expectations despite sequential spikes in the prices of vegetables, pulses, edible oils, etc. This is primarily on account of a crash in core inflation from 4.25% in May to 4.11% in June. This reflects underlying weakness in demand and is supportive of the RBI's easy monetary policy stance," said&nbsp;Rupa Rege Nitsure, Chief Economist, L&amp;T Financial.&nbsp;

"Weaknesses in manufacturing activity, especially in capital goods and consumer durable goods production, is weighing on industrial growth," he added.&nbsp;

"The broad trend is that consumer price inflation remains rangebound. The food inflation trend is upwards, while the core is downwards, so the overall outlook on inflation is benign. The RBI will continue to maintain its accommodative stance and could do another 25-50 basis point rate cuts in this financial year,"&nbsp;said Sujan Hajra, Chief Economist, Anand Rathi Securities.&nbsp;

India's retail inflation rate hit an eight-month high in June on higher food prices, government data showed on Friday, but stayed below the central bank's medium-term target of 4% for an eleventh straight month.

India's retail inflation rate hit an eight-month high in June on higher food prices, government data showed on Friday, but stayed below the central bank's medium-term target of 4% for an eleventh straight month. Annual retail inflation in June was 3.18%, up from 3.05% in the previous month, but below analyst forecasts. A Reuters poll had predicted a retail inflation rate of 3.20% for June. Meanwhile, data showed the country's industrial output climbed 3.1% in May from a year earlier, but lagged forecast. "CPI inflation has come in much below market expectations despite sequential spikes in the prices of vegetables, pulses, edible oils, etc. This is primarily on account of a crash in core inflation from 4.25% in May to 4.11% in June. This reflects underlying weakness in demand and is supportive of the RBI's easy monetary policy stance," said Rupa Rege Nitsure, Chief Economist, L&T Financial. "Weaknesses in manufacturing activity, especially in capital goods and consumer durable goods production, is weighing on industrial growth," he added. "The broad trend is that consumer price inflation remains rangebound. The food inflation trend is upwards, while the core is downwards, so the overall outlook on inflation is benign. The RBI will continue to maintain its accommodative stance and could do another 25-50 basis point rate cuts in this financial year," said Sujan Hajra, Chief Economist, Anand Rathi Securities.

India's retail inflation hits 8-month high in June

Wholesale price-based inflation slipped to 22-month low at 2.45 per cent in May helped by falling prices of food articles, fuel and power items, according to an official data released Friday.

The Wholesale Price Index (WPI)-based inflation was at 3.07 per cent in April. It was 4.78 per cent in May 2018.

Inflation in food articles basket was 6.99 per cent, down from 7.37 per cent in April.

However, onion prices spiked during the month with inflation at 15.89 per cent, as against (-) 3.43 per cent in April.

Vegetables inflation eased to 33.15 per cent in May, down from 40.65 per cent in the previous month. Inflation in potato was (-) 23.36 per cent, against (-) 17.15 per cent in April.

WPI inflation in May is the lowest in 22 months, since July 2017, when it was at 1.88 per cent.

Inflation in 'fuel and power' category cooled to 0.98 per cent, from 3.84 per cent last month. Manufactured items too saw decline in prices with inflation at 1.28 per cent in May, against 1.72 per cent in April.

WPI inflation data for March has been revised downwards to 3.10 per cent from provisional 3.18 per cent.

Data released earlier this week showed retail inflation spiked to a 7-month high of 3.05 per cent in May on costlier vegetables, and protein-rich items.

The Reserve Bank, which mainly factors in retail inflation for monetary policy decision, on June 6, lowered its benchmark lending rate to a nearly 9-year low of 5.75 per cent, even as it upped its inflation projection to 3-3.1 per cent for the first half of 2019-20.

Flagging uncertain monsoon, unseasonal spike in vegetable prices, crude oil prices, financial market volatility and fiscal scenario as risks to inflation, the RBI projected upward bias in food inflation in near term.&nbsp;

Wholesale price-based inflation slipped to 22-month low at 2.45 per cent in May helped by falling prices of food articles, fuel and power items, according to an official data released Friday.

Wholesale price-based inflation slipped to 22-month low at 2.45 per cent in May helped by falling prices of food articles, fuel and power items, according to an official data released Friday. The Wholesale Price Index (WPI)-based inflation was at 3.07 per cent in April. It was 4.78 per cent in May 2018. Inflation in food articles basket was 6.99 per cent, down from 7.37 per cent in April. However, onion prices spiked during the month with inflation at 15.89 per cent, as against (-) 3.43 per cent in April. Vegetables inflation eased to 33.15 per cent in May, down from 40.65 per cent in the previous month. Inflation in potato was (-) 23.36 per cent, against (-) 17.15 per cent in April. WPI inflation in May is the lowest in 22 months, since July 2017, when it was at 1.88 per cent. Inflation in 'fuel and power' category cooled to 0.98 per cent, from 3.84 per cent last month. Manufactured items too saw decline in prices with inflation at 1.28 per cent in May, against 1.72 per cent in April. WPI inflation data for March has been revised downwards to 3.10 per cent from provisional 3.18 per cent. Data released earlier this week showed retail inflation spiked to a 7-month high of 3.05 per cent in May on costlier vegetables, and protein-rich items. The Reserve Bank, which mainly factors in retail inflation for monetary policy decision, on June 6, lowered its benchmark lending rate to a nearly 9-year low of 5.75 per cent, even as it upped its inflation projection to 3-3.1 per cent for the first half of 2019-20. Flagging uncertain monsoon, unseasonal spike in vegetable prices, crude oil prices, financial market volatility and fiscal scenario as risks to inflation, the RBI projected upward bias in food inflation in near term.

WPI inflation at nearly 2-year low at 2.45% in May

<a href="https://www.wionews.com/business-economy/indias-retail-inflation-rate-hits-17-month-low-in-november-183540">India's retail inflation</a> rate hit a seven-month high in May due to higher food prices, government data showed on Wednesday, but stayed below the central bank's target and potentially gives it room for more interest rate cuts to help a sluggish economy.

Annual retail inflation in May was 3.05 per cent, up from the revised 2.99 per cent&nbsp;in the previous month, and above forecasts by analysts.

A Reuters poll had predicted a retail inflation rate of 3.01 per cent for May.

Core consumer inflation, which strips out food and fuel prices, was estimated at 4.1-4.2 per cent&nbsp;in May, lower than April's 4.53 per cent-4.57 per cent, three analysts said after seeing the inflation figures on Wednesday.

While food <a href="https://www.wionews.com/business-%26-economy/retail-inflation-eases-rbi-may-keep-interest-rates-on-hold-158931">inflation</a> has been rising, the moderation in core inflation has capped the overall inflationary pressures in the economy, said Tushar Arora, senior economist at HDFC Bank.

"We believe that overall inflation would remain subdued, allowing the central bank to cut the policy rate yet again," he said.

Inflation has sharply come down from a peak of more than 12 per cent&nbsp;in 2013 and has now come in below the Reserve Bank of India's medium-term target of 4 per cent&nbsp;for ten consecutive months.

Comforted by the subdued price pressures, and increasingly concerned by the economy's faltering growth, the RBI has cut its policy rate three times since February.

The most recent reduction was last week when the RBI lowered its repo rate by 25 basis points to 5.75 per cent and changed its policy stance to "accommodative" to meet the needs of the economy and a banking system laden with bad debts.

Prime Minister Narendra Modi secured a second term after a landslide election victory last month despite the economic slowdown.

During the January-March quarter, the gross domestic product grew 5.8 per cent annually, the lowest in over four years and well below the rate needed to generate enough jobs for millions of young Indians entering the labour market each month.

The combination of low growth and low inflation is particularly difficult for farmers, who benefit from higher food prices.

Retail food prices, which make up nearly half of India's inflation basket, increased 1.83 per cent in May from a year earlier, up from 1.10 per cent in April. Food prices began rising again in March, having fallen in the five months through February.

The monsoon season rains arrived a week late this month, by which time reservoirs had dried up in many places, and economists say inflation could pick up in coming months if any shortfall in rains causes a spike in food prices.

RBI's raised its inflation outlook for April-September to 3.0-3.1 per cent, from its April outlook of 2.9-3.0 per cent.

India's retail inflation rate hit a seven-month high in May due to higher food prices, government data showed on Wednesday, but stayed below the central bank's target and potentially gives it room for more interest rate cuts to help a sluggish economy.

India's retail inflation rate hit a seven-month high in May due to higher food prices, government data showed on Wednesday, but stayed below the central bank's target and potentially gives it room for more interest rate cuts to help a sluggish economy. Annual retail inflation in May was 3.05 per cent, up from the revised 2.99 per cent in the previous month, and above forecasts by analysts. A Reuters poll had predicted a retail inflation rate of 3.01 per cent for May. Core consumer inflation, which strips out food and fuel prices, was estimated at 4.1-4.2 per cent in May, lower than April's 4.53 per cent-4.57 per cent, three analysts said after seeing the inflation figures on Wednesday. While food inflation has been rising, the moderation in core inflation has capped the overall inflationary pressures in the economy, said Tushar Arora, senior economist at HDFC Bank. "We believe that overall inflation would remain subdued, allowing the central bank to cut the policy rate yet again," he said. Inflation has sharply come down from a peak of more than 12 per cent in 2013 and has now come in below the Reserve Bank of India's medium-term target of 4 per cent for ten consecutive months. Comforted by the subdued price pressures, and increasingly concerned by the economy's faltering growth, the RBI has cut its policy rate three times since February. The most recent reduction was last week when the RBI lowered its repo rate by 25 basis points to 5.75 per cent and changed its policy stance to "accommodative" to meet the needs of the economy and a banking system laden with bad debts. Prime Minister Narendra Modi secured a second term after a landslide election victory last month despite the economic slowdown. During the January-March quarter, the gross domestic product grew 5.8 per cent annually, the lowest in over four years and well below the rate needed to generate enough jobs for millions of young Indians entering the labour market each month. The combination of low growth and low inflation is particularly difficult for farmers, who benefit from higher food prices. Retail food prices, which make up nearly half of India's inflation basket, increased 1.83 per cent in May from a year earlier, up from 1.10 per cent in April. Food prices began rising again in March, having fallen in the five months through February. The monsoon season rains arrived a week late this month, by which time reservoirs had dried up in many places, and economists say inflation could pick up in coming months if any shortfall in rains causes a spike in food prices. RBI's raised its inflation outlook for April-September to 3.0-3.1 per cent, from its April outlook of 2.9-3.0 per cent.

May inflation hits seven-month high; still room for rate cut

<a href="https://www.wionews.com/india-general-elections-2019/will-make-sedition-law-more-stringent-rajnath-singh-219016">Union Home Minister Rajnath Singh </a>on Thursday said that inflation is not an issue in the ongoing elections as it has been well controlled by Prime Minister Narendra Modi-led government at the Centre.

"If you go through Indian elections` history, you will see inflation was an issue in all of them. People used to sing `Congress sarkar aayi hai, kamartod mehengai layi hai` (Congress government has come and brought high inflation along with it). But 2004 and 2019 are two elections where there were issues but inflation was not one of them," Singh said while addressing an election rally in Himachal Pradesh.

"There was Atal Bihari Vajpayee`s government before 2004 and Narendra Modi`s before 2019. Both of them handled economic management well and attacked corruption. Pakistan`s inflation rate is 10-12 per cent and India`s is 2-3 per cent. We did not let inflation cross Indo-Pak border and enter here," he said.

The Home Minister was addressing the rally in support of sitting BJP MP Ram Swaroop Sharma from Mandi Lok Sabha seat.

The four Lok Sabha seats in Himachal Pradesh, including Mandi, would go for polling on May 19.

The counting of votes will take place on May 23.

Union Home Minister Rajnath Singh on Thursday said that inflation is not an issue in the ongoing elections as it has been well controlled by Prime Minister Narendra Modi-led government at the Centre.

Union Home Minister Rajnath Singh on Thursday said that inflation is not an issue in the ongoing elections as it has been well controlled by Prime Minister Narendra Modi-led government at the Centre. "If you go through Indian elections` history, you will see inflation was an issue in all of them. People used to sing `Congress sarkar aayi hai, kamartod mehengai layi hai` (Congress government has come and brought high inflation along with it). But 2004 and 2019 are two elections where there were issues but inflation was not one of them," Singh said while addressing an election rally in Himachal Pradesh. "There was Atal Bihari Vajpayee`s government before 2004 and Narendra Modi`s before 2019. Both of them handled economic management well and attacked corruption. Pakistan`s inflation rate is 10-12 per cent and India`s is 2-3 per cent. We did not let inflation cross Indo-Pak border and enter here," he said. The Home Minister was addressing the rally in support of sitting BJP MP Ram Swaroop Sharma from Mandi Lok Sabha seat. The four Lok Sabha seats in Himachal Pradesh, including Mandi, would go for polling on May 19. The counting of votes will take place on May 23.

Inflation not issue in 2019, Modi handled economy well: Rajnath Singh

The annual rate of inflation based on wholesale price index stood at 3.07 per cent in April compared to 3.18 per cent in March, the government said on Tuesday. It was 3.62 per cent in April last year, according to a statement released by the Ministry of Commerce and Industry.

The official wholesale price index for all commodities (base: 2011-12=100) for April 2019 rose by 0.8 per cent to 120.9.

Build up inflation rate in the financial year so far was 0.75 per cent compared to a build-up rate of 0.86 per cent in the corresponding period of the previous year.

The index for primary articles group (with weightage of 22.6 per cent) rose by 3.3 per cent to 139.2 from 134.7 for March.

Under this, the index for food articles group rose by 3.4 per cent due to higher price of tea by 15 per cent, fruits and vegetables by 14 per cent, peas and chawali by 6 per cent, maize by 5 per cent, poultry chicken by 4 per cent, arhar, bajra and pork by 3 per cent each), gram, condiments and spices by 2 per cent each, masur, urad, mutton and rajma by 1 per cent each.

However, prices of egg declined by 6 per cent, betel leaves by 4 per cent, barley and wheat by 3 per cent each), beef and buffalo meat by 1 per cent each.

The index for non-food articles'&nbsp;group rose by 2.6 per cent to 126.7 from 123.5 during March.

The index for fuel and power group (with weightage of over 13 per cent) declined by 0.5 per cent to 102.8 from 103.3 in March.

The index for mineral oils` group rose by 0.4 per cent to 95.4 from 95 in March due to higher price of LPG by 5 per cent, naphtha by 3 per cent, petrol and kerosene 2 per cent each and ATF 1 per cent.

However, the price of petroleum coke declined by 3 per cent, furnace oil 2 per cent and HSD 1 per cent.

The index for electricity group declined by 3.1 per cent to 107.3 from 110.7 for March due to lower price of electricity by 3 per cent.

On Monday, the government said consumer inflation picked up to 2.92 per cent in April as against 2.86 per cent in March. However, it remained within the 4 per cent comfort zone of Reserve Bank of India.

The annual rate of inflation based on wholesale price index stood at 3.07 per cent in April compared to 3.18 per cent in March, the government said on Tuesday. It was 3.

The annual rate of inflation based on wholesale price index stood at 3.07 per cent in April compared to 3.18 per cent in March, the government said on Tuesday. It was 3.62 per cent in April last year, according to a statement released by the Ministry of Commerce and Industry. The official wholesale price index for all commodities (base: 2011-12=100) for April 2019 rose by 0.8 per cent to 120.9. Build up inflation rate in the financial year so far was 0.75 per cent compared to a build-up rate of 0.86 per cent in the corresponding period of the previous year. The index for primary articles group (with weightage of 22.6 per cent) rose by 3.3 per cent to 139.2 from 134.7 for March. Under this, the index for food articles group rose by 3.4 per cent due to higher price of tea by 15 per cent, fruits and vegetables by 14 per cent, peas and chawali by 6 per cent, maize by 5 per cent, poultry chicken by 4 per cent, arhar, bajra and pork by 3 per cent each), gram, condiments and spices by 2 per cent each, masur, urad, mutton and rajma by 1 per cent each. However, prices of egg declined by 6 per cent, betel leaves by 4 per cent, barley and wheat by 3 per cent each), beef and buffalo meat by 1 per cent each. The index for non-food articles' group rose by 2.6 per cent to 126.7 from 123.5 during March. The index for fuel and power group (with weightage of over 13 per cent) declined by 0.5 per cent to 102.8 from 103.3 in March. The index for mineral oils` group rose by 0.4 per cent to 95.4 from 95 in March due to higher price of LPG by 5 per cent, naphtha by 3 per cent, petrol and kerosene 2 per cent each and ATF 1 per cent. However, the price of petroleum coke declined by 3 per cent, furnace oil 2 per cent and HSD 1 per cent. The index for electricity group declined by 3.1 per cent to 107.3 from 110.7 for March due to lower price of electricity by 3 per cent. On Monday, the government said consumer inflation picked up to 2.92 per cent in April as against 2.86 per cent in March. However, it remained within the 4 per cent comfort zone of Reserve Bank of India.

WPI inflation slips to 3.07% in April from 3.18% in March

Wholesale price-based inflation rose for the <a href="WPI inflation spikes to 3.18 pc in March on costlier food, fuel">second consecutive month to 3.18 per cent</a> in March on costlier food and fuel, government data released Monday showed.

The Wholesale Price Index (WPI) based inflation was at 2.93 per cent in February. It was 2.74 per cent in March 2018.

Inflation in food articles hardened with steep rise in prices of vegetables during March 2019.

Vegetables inflation was at 28.13 per cent in March, up from 6.82 per cent in the previous month. However, inflation in potato cooled substantially to 1.30 per cent, from 23.40 per cent in February.

Inflation in food articles basket was 5.68 per cent during March.

Inflation in 'fuel and power' category also spiked to 5.41 per cent, from 2.23 per cent in February.

The Reserve Bank, which mainly factors in retail inflation for monetary policy decision, had earlier this month cut interest rates by 0.25 per cent.

Retail inflation accelerated to 2.86 per cent in March from 2.57 per cent a month ago, data released last week showed.

For April-September period, the RBI has projected retail inflation at 2.9-3 per cent, mainly due to lower food and fuel prices as well as expectation of a normal monsoon.&nbsp;

Wholesale price-based inflation rose for the second consecutive month to 3.18 per cent in March on costlier food and fuel, government data released Monday showed.

Wholesale price-based inflation rose for the second consecutive month to 3.18 per cent in March on costlier food and fuel, government data released Monday showed. The Wholesale Price Index (WPI) based inflation was at 2.93 per cent in February. It was 2.74 per cent in March 2018. Inflation in food articles hardened with steep rise in prices of vegetables during March 2019. Vegetables inflation was at 28.13 per cent in March, up from 6.82 per cent in the previous month. However, inflation in potato cooled substantially to 1.30 per cent, from 23.40 per cent in February. Inflation in food articles basket was 5.68 per cent during March. Inflation in 'fuel and power' category also spiked to 5.41 per cent, from 2.23 per cent in February. The Reserve Bank, which mainly factors in retail inflation for monetary policy decision, had earlier this month cut interest rates by 0.25 per cent. Retail inflation accelerated to 2.86 per cent in March from 2.57 per cent a month ago, data released last week showed. For April-September period, the RBI has projected retail inflation at 2.9-3 per cent, mainly due to lower food and fuel prices as well as expectation of a normal monsoon.

Inflation spikes in March as food, fuel get costlier

The Reserve Bank of India(RBI) today cut benchmark lending rate by 0.25 per cent to 6 per cent.

The decision&nbsp;came as a relief for home loan buyers.

The RBI maintained a neutral stance on the monetary policy.

The central bank&nbsp;projected GDP growth for 2019-20 at 7.2 per cent. RBI revised downward retail inflation estimate to 2.4 per cent in Q4 FY19, 2.9-3 per cent in H1 FY20 and 3.5-3.8 per cent in H2 FY20.

Four out of six MPC members voted for the rate cut while the other two members favoured no change in repo rate, the RBI informed.

In February, the RBI had cut interest rates for the first time in 18 months by 25 basis points to 6.25 per cent. The move was as a result of low inflation at the time. Besides the repo rate, reverse repo was reduced to 6 per cent from 6.25 per cent.

Repo rate is the rate at which commercial banks borrow money from the RBI; while reverse repo rate is the rate at which RBI collects money from banks.

RBI had last hiked interest rates in August 2018 by 0.25 per cent. It came on back of a similar increase in June, 2018.

The Reserve Bank of India(RBI) today cut benchmark lending rate by 0.25 per cent to 6 per cent. The decision came as a relief for home loan buyers. The RBI maintained a neutral stance on the monetary policy.

The Reserve Bank of India(RBI) today cut benchmark lending rate by 0.25 per cent to 6 per cent. The decision came as a relief for home loan buyers. The RBI maintained a neutral stance on the monetary policy. The central bank projected GDP growth for 2019-20 at 7.2 per cent. RBI revised downward retail inflation estimate to 2.4 per cent in Q4 FY19, 2.9-3 per cent in H1 FY20 and 3.5-3.8 per cent in H2 FY20. Four out of six MPC members voted for the rate cut while the other two members favoured no change in repo rate, the RBI informed. In February, the RBI had cut interest rates for the first time in 18 months by 25 basis points to 6.25 per cent. The move was as a result of low inflation at the time. Besides the repo rate, reverse repo was reduced to 6 per cent from 6.25 per cent. Repo rate is the rate at which commercial banks borrow money from the RBI; while reverse repo rate is the rate at which RBI collects money from banks. RBI had last hiked interest rates in August 2018 by 0.25 per cent. It came on back of a similar increase in June, 2018.

RBI cuts lending rate by 0.25 per cent to 6 per cent; projects GDP growth for 2019-20 at 7.2%

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