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%

Crippling inflation in Pakistan, residents lose faith in Imran govt

Pakistan's annual consumer price inflation surged to 8.21 per cent in February from 7.19 per cent a month earlier, the Bureau of Statistics said on Friday.

On a month-on-month basis, prices increased by 0.64 per cent in February, it said.

The data comes after five currency devaluations since December 2016 by the central bank, weakening the Pakistani rupee by 26 per cent against the dollar during that period.

Rising food prices, including a 150 per cent jump in the price of tomatoes, were the main reason for the accelerating inflation, the bureau said.

Pakistan's annual consumer price inflation surged to 8.21 per cent in February from 7.19 per cent a month earlier, the Bureau of Statistics said on Friday. On a month-on-month basis, prices increased by 0.

Pakistan's annual consumer price inflation surged to 8.21 per cent in February from 7.19 per cent a month earlier, the Bureau of Statistics said on Friday. On a month-on-month basis, prices increased by 0.64 per cent in February, it said. The data comes after five currency devaluations since December 2016 by the central bank, weakening the Pakistani rupee by 26 per cent against the dollar during that period. Rising food prices, including a 150 per cent jump in the price of tomatoes, were the main reason for the accelerating inflation, the bureau said.

Pakistan annual inflation accelerates to 8.21% in February: Bureau of Statistics

The Reserve Bank Of India Thursday revised downwards the retail inflation forecast to 2.8 per cent for the last quarter of the current fiscal on account of favourable factors including benign monsoon.

The RBI in its last bi-monthly monetary policy announcement for the current fiscal also lowered the retail inflation forecast for the first half of next fiscal beginning April, to 3.2-3.4 per.

For the third quarter of 2019-20, the inflation target is set at 3.9 per cent.

"Several factors will shape the inflation path, going forward. First, food inflation has continued to surprise on the downside with continuing deflation across several items and a significant moderation in inflation in cereals. Several food groups are experiencing excess supply conditions domestically as well as internationally," RBI said.

RBI said the short-term outlook for food inflation appears particularly benign, despite adverse base effects.

The central bank Thursday cut the key repo rate -- at which it lends to banks -- by 0.25 per cent to 6.25 per cent.

"These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of plus/minus 2 per cent while supporting growth," RBI said.

The moderation in the fuel group was larger than anticipated. Inflation in items of rural consumption such as firewood and chips, which had remained sticky and at elevated levels, has collapsed in recent months, it added.

"Taking into consideration these developments and assuming a normal monsoon in 2019, the path of CPI inflation is revised downwards to 2.8 per cent in Q4:2018-19, 3.2-3.4 per cent in H1:2019-20 and 3.9 per cent in Q3:2019-20, with risks broadly balanced around the central trajectory," RBI said.&nbsp;

The Reserve Bank Of India Thursday revised downwards the retail inflation forecast to 2.8 per cent for the last quarter of the current fiscal on account of favourable factors including benign monsoon.

The Reserve Bank Of India Thursday revised downwards the retail inflation forecast to 2.8 per cent for the last quarter of the current fiscal on account of favourable factors including benign monsoon. The RBI in its last bi-monthly monetary policy announcement for the current fiscal also lowered the retail inflation forecast for the first half of next fiscal beginning April, to 3.2-3.4 per. For the third quarter of 2019-20, the inflation target is set at 3.9 per cent. "Several factors will shape the inflation path, going forward. First, food inflation has continued to surprise on the downside with continuing deflation across several items and a significant moderation in inflation in cereals. Several food groups are experiencing excess supply conditions domestically as well as internationally," RBI said. RBI said the short-term outlook for food inflation appears particularly benign, despite adverse base effects. The central bank Thursday cut the key repo rate -- at which it lends to banks -- by 0.25 per cent to 6.25 per cent. "These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of plus/minus 2 per cent while supporting growth," RBI said. The moderation in the fuel group was larger than anticipated. Inflation in items of rural consumption such as firewood and chips, which had remained sticky and at elevated levels, has collapsed in recent months, it added. "Taking into consideration these developments and assuming a normal monsoon in 2019, the path of CPI inflation is revised downwards to 2.8 per cent in Q4:2018-19, 3.2-3.4 per cent in H1:2019-20 and 3.9 per cent in Q3:2019-20, with risks broadly balanced around the central trajectory," RBI said.

RBI cuts inflation forecast to 2.8% for Q419; 3.2-3.4% for H1FY20

The people of Turkey have been hit by food price hikes which has led to the government accusing merchants of speculation and the pulling of products from shelves.&nbsp;

The price of a kilo of eggplant nearly tripled from five liras ($0.96) last week to 12 liras ($2.30) on Saturday, despite the country's president Recep Tayyip Erdogan denouncing price hikes.&nbsp;

"If these grocery stores continue to exploit my people, it is my duty to hold them to account, and I will," Erdogan said during a meeting on Jan. 26, accusing them of treason.&nbsp;

Many merchants, in response, began to withdraw vegetables, including eggplants and peppers, from the market, escalating tensions.&nbsp;

"We had to take a decision in response to the rhetoric they use against us," chairman of the Retailers' Federation of Turkey, Mustafa Altunbilek, said, adding that merchants were trying to stop selling certain vegetables for a while.&nbsp;

Stuck between the two sides' positions, many Turkish people have denounced the sudden increase in the price of some of the most important ingredients in their national cuisine, such as bell peppers and eggplants.&nbsp;

The ingredients of a "menemen" meal, a tradition dish which includes eggs, tomatoes, green peppers and spices, for five people has gone up to the equivalent of four euros ($4.58), compared to 1.5 euros ($1.72) just 10 days ago.&nbsp;

"The average price of the food industry showed in Dec. annual increase of 25 percent, a little less than in Oct. but it is still an important hike," economist Ahmet Oncu told EFE.&nbsp;

The southwest coastal province of Antalya, which produces 53 percent of the vegetables in Turkey, has been struggling with bad weather and was hit by a tornado late in Jan.&nbsp;

The government has tried over the last few months to control inflation by striking measures such as deploying police forces at supermarkets to determine prices and investigate ones that are suspected of raising the prices.&nbsp;

In Jan., the Ministry of Finance ordered searches of Ankara's onion warehouses in a bid to avoid speculative measures, while the Ministry of Trade issued a memo asking the governors of Turkey's 81 provinces to notify it of prices on a weekly basis.&nbsp;

The people of Turkey have been hit by food price hikes which has led to the government accusing merchants of speculation and the pulling of products from shelves.

The people of Turkey have been hit by food price hikes which has led to the government accusing merchants of speculation and the pulling of products from shelves. The price of a kilo of eggplant nearly tripled from five liras ($0.96) last week to 12 liras ($2.30) on Saturday, despite the country's president Recep Tayyip Erdogan denouncing price hikes. "If these grocery stores continue to exploit my people, it is my duty to hold them to account, and I will," Erdogan said during a meeting on Jan. 26, accusing them of treason. Many merchants, in response, began to withdraw vegetables, including eggplants and peppers, from the market, escalating tensions. "We had to take a decision in response to the rhetoric they use against us," chairman of the Retailers' Federation of Turkey, Mustafa Altunbilek, said, adding that merchants were trying to stop selling certain vegetables for a while. Stuck between the two sides' positions, many Turkish people have denounced the sudden increase in the price of some of the most important ingredients in their national cuisine, such as bell peppers and eggplants. The ingredients of a "menemen" meal, a tradition dish which includes eggs, tomatoes, green peppers and spices, for five people has gone up to the equivalent of four euros ($4.58), compared to 1.5 euros ($1.72) just 10 days ago. "The average price of the food industry showed in Dec. annual increase of 25 percent, a little less than in Oct. but it is still an important hike," economist Ahmet Oncu told EFE. The southwest coastal province of Antalya, which produces 53 percent of the vegetables in Turkey, has been struggling with bad weather and was hit by a tornado late in Jan. The government has tried over the last few months to control inflation by striking measures such as deploying police forces at supermarkets to determine prices and investigate ones that are suspected of raising the prices. In Jan., the Ministry of Finance ordered searches of Ankara's onion warehouses in a bid to avoid speculative measures, while the Ministry of Trade issued a memo asking the governors of Turkey's 81 provinces to notify it of prices on a weekly basis.

Eggplant war in Turkey: Inflation, speculation, treason

The presentation of Union Budget 2019 is just days away. The Budget, which will be presented on February 1, is going to be Modi government's last Budget of the current tenure and is expected to be an interim one.

As the government gets ready to present its financial plan for the coming months, we highlight some critical details related to a few significant terms like 'GST', 'Fiscal Deficit', 'Revenue Deficit', ‘Primary Deficit', 'Capital Expenditure', Direct &amp; Indirect Taxes etc, used in the annual financial statement.

These definitions are provided by the Finance Ministry.

Budget estimates: Amount of money allocated in the Budget to any ministry or scheme for the coming financial year.

Fiscal deficit: When the government's non-borrowed receipts fall short of its entire expenditure, it has to borrow money from the public to meet the shortfall. The excess of total expenditure over total non-borrowed receipts is called a fiscal deficit.

Revenue Deficit: The difference between revenue expenditure and revenue receipt is known as revenue deficit. It shows the shortfall of government's current receipts over current expenditure.

Primary deficit: The primary deficit is the fiscal deficit minus interest payments. It tells how much of the government's borrowings are going towards meeting expenses other than interest payments.

Goods and Services Tax: The Constitution defines Goods and Services Tax as any tax on the supply of goods or services or both except taxes on the supply of alcoholic liquor for human consumption. 'Goods' means every kind of movable property other than money and securities but includes the actionable claim, growing crops, grass and things attached to or forming part of the land which is agreed to be severed before supply or under a contract of supply. 'Services' means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination for which a separate consideration is charged.

Direct and indirect taxes: Direct taxes are the one that falls directly on individuals and corporations. For example, income tax, corporate tax etc. Indirect taxes are imposed on goods and services They are paid by consumers when they buy goods and services. These include excise duty, customs duty etc.

Customs duty: These are levies charged when goods are imported into, or exported from, the country, and they are paid by the importer or exporter. Usually, these are also passed on to the consumer.

Monetary policy: This comprises actions taken by the central bank (RBI) to regulate the level of money or liquidity in the economy, or change the interest rates.

Fiscal policy: It is the government actions with respect to aggregate levels of revenue and spending. Fiscal policy is implemented through the Budget and is the primary means by which the government can influence the economy.

Inflation: A sustained increase in the general price level. The inflation rate is the percentage rate of change in the price level.

Finance bill: The bill produced immediately after presentation of the Union Budget detailing the imposition, abolition, alteration or regulation of taxes proposed in the Budget.

Excess grants: If the total expenditure under a grant exceeds the provision allowed through its original grant and supplementary grant, then the access requires regularisation by obtaining the excess grant from Parliament under Article 115 of the Constitution of India. It will have to go through the whole process as in the case of the annual Budget i.e. through a presentation of demands for grants and passing of appropriation bills.

Re-appropriations: Re-appropriations allow the government to re-appropriate provisions from one sub-head to another within the same grant. Re-appropriation provisions may be sanctioned by a competent authority at any time before the close of the financial year to which such grant or appropriation relates. The Comptroller and Auditor General and the Public Accounts Committee review these re-appropriations and comments on them for taking corrective actions.

Cut motions: Motions for reduction to various demands for grants are made in the form of cut motions seeking to reduce the sums sought by the government on grounds of economy or difference of opinion on matters of policy or just in order to voice a grievance.

Guillotine: Parliament, unfortunately, has very limited time for scrutinising expenditure demands of all the ministries. So, once the prescribed period for discussion on demands for grants is over, the Speaker of Lok Sabha puts all the outstanding demands for grants, whether discussed or not, to the vote of the House. This process is popularly known as 'Guillotine'. 
&nbsp;

The presentation of Union Budget 2019 is just days away. The Budget, which will be presented on February 1, is going to be Modi government's last Budget of the current tenure and is expected to be an interim one.

The presentation of Union Budget 2019 is just days away. The Budget, which will be presented on February 1, is going to be Modi government's last Budget of the current tenure and is expected to be an interim one. As the government gets ready to present its financial plan for the coming months, we highlight some critical details related to a few significant terms like 'GST', 'Fiscal Deficit', 'Revenue Deficit', ‘Primary Deficit', 'Capital Expenditure', Direct & Indirect Taxes etc, used in the annual financial statement. These definitions are provided by the Finance Ministry. Budget estimates: Amount of money allocated in the Budget to any ministry or scheme for the coming financial year. Fiscal deficit: When the government's non-borrowed receipts fall short of its entire expenditure, it has to borrow money from the public to meet the shortfall. The excess of total expenditure over total non-borrowed receipts is called a fiscal deficit. Revenue Deficit: The difference between revenue expenditure and revenue receipt is known as revenue deficit. It shows the shortfall of government's current receipts over current expenditure. Primary deficit: The primary deficit is the fiscal deficit minus interest payments. It tells how much of the government's borrowings are going towards meeting expenses other than interest payments. Goods and Services Tax: The Constitution defines Goods and Services Tax as any tax on the supply of goods or services or both except taxes on the supply of alcoholic liquor for human consumption. 'Goods' means every kind of movable property other than money and securities but includes the actionable claim, growing crops, grass and things attached to or forming part of the land which is agreed to be severed before supply or under a contract of supply. 'Services' means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination for which a separate consideration is charged. Direct and indirect taxes: Direct taxes are the one that falls directly on individuals and corporations. For example, income tax, corporate tax etc. Indirect taxes are imposed on goods and services They are paid by consumers when they buy goods and services. These include excise duty, customs duty etc. Customs duty: These are levies charged when goods are imported into, or exported from, the country, and they are paid by the importer or exporter. Usually, these are also passed on to the consumer. Monetary policy: This comprises actions taken by the central bank (RBI) to regulate the level of money or liquidity in the economy, or change the interest rates. Fiscal policy: It is the government actions with respect to aggregate levels of revenue and spending. Fiscal policy is implemented through the Budget and is the primary means by which the government can influence the economy. Inflation: A sustained increase in the general price level. The inflation rate is the percentage rate of change in the price level. Finance bill: The bill produced immediately after presentation of the Union Budget detailing the imposition, abolition, alteration or regulation of taxes proposed in the Budget. Excess grants: If the total expenditure under a grant exceeds the provision allowed through its original grant and supplementary grant, then the access requires regularisation by obtaining the excess grant from Parliament under Article 115 of the Constitution of India. It will have to go through the whole process as in the case of the annual Budget i.e. through a presentation of demands for grants and passing of appropriation bills. Re-appropriations: Re-appropriations allow the government to re-appropriate provisions from one sub-head to another within the same grant. Re-appropriation provisions may be sanctioned by a competent authority at any time before the close of the financial year to which such grant or appropriation relates. The Comptroller and Auditor General and the Public Accounts Committee review these re-appropriations and comments on them for taking corrective actions. Cut motions: Motions for reduction to various demands for grants are made in the form of cut motions seeking to reduce the sums sought by the government on grounds of economy or difference of opinion on matters of policy or just in order to voice a grievance. Guillotine: Parliament, unfortunately, has very limited time for scrutinising expenditure demands of all the ministries. So, once the prescribed period for discussion on demands for grants is over, the Speaker of Lok Sabha puts all the outstanding demands for grants, whether discussed or not, to the vote of the House. This process is popularly known as 'Guillotine'.

Fiscal deficit, cut motion, guillotine: Terms to know for Budget

<a href="http://www.wionews.com/world/sudan-police-tear-gas-protesters-ahead-of-parliament-march-witnesses-191651">Sudanese President Omar al-Bashir</a> does little to hide his contempt for the young men and women who have been protesting for more than a month to demand an end to his three-decade rule.

Addressing soldiers this month, Bashir, a 75-year-old former paratrooper who seized power in a bloodless coup in 1989, warned the "rats to go back to their holes" and said he would only move aside for another army officer, or at the ballot box.

"They said they want the army to take power. That's no problem. If someone comes in wearing khaki, we have no objection," Bashir, wearing his military uniform, told soldiers at a base in Atbara, the northern Sudanese city where the protests started.

"When the army moves, it doesn't move in a vacuum. It doesn't move in support of traitors. It moves in support of the homeland," he added in colloquial Arabic.

Bashir has long been a divisive figure.

Since taking office in what was then Africa's largest country, he fought a protracted civil war with southern rebels which ultimately ended with the secession of South Sudan in 2011, and the loss of more than 70 per cent of Sudan's oil.

Sudan has suffered prolonged periods of isolation since 1993 when the United States added Bashir's government to its list of terrorism sponsors for harbouring Islamist militants. Washington followed up with sanctions four years later.

Bashir has also been indicted by the International Criminal Court (ICC) in The Hague over allegations of genocide in Sudan's Darfur region during an insurgency that began in 2003.

Now, he is facing almost daily defiance at home in towns and cities across the country, protests that are still spreading despite mass arrests and a harsh crackdown by security forces using tear gas and live ammunition.

Authorities say at least 30 people have died in the unrest, which started on Dec. 19 after the government tried to raise bread prices, while rights groups and local opposition figures say at least 45 have been killed. Hundreds have been injured and hundreds more detained.

"The current protests represent the biggest and deepest challenge to Bashir's rule because they indicate that the crisis has reached a new level," analyst Khalid al-Tijani said.

Economic meltdown

Bashir's critics blame him for Sudan's marginalisation and an economic meltdown that saw inflation soar to 72 per cent by the end of 2018 and left the country unable to pay for food imports.

Supporters blame a Western conspiracy designed to undermine Islamist rule in Sudan, just as Bashir rejected the ICC charges over Darfur as part of a neo-colonialist plot.

In the months before the protests began, Sudanese had already been struggling to makes ends meet. The government tried to introduce reforms, devaluing the Sudanese pound and relaxing import restrictions, all to little effect.

The government had hoped for quick financial support from wealthy Gulf Arab allies after Bashir sent troops to Yemen as part of Saudi-led alliance fighting rebels aligned with Iran, but help was slow to arrive.

The trigger for the wave of protests was a government attempt to introduce unsubsidised bread, allowing bakeries to sell at a higher price. That came on top of the crippling, drawn-out crisis that had led to fuel and banknote shortages.

The demonstrations quickly turned political, targeting ruling party offices and demanding Bashir step down.

Unlike previous bouts of unrest, the protests have spread to parts of the country normally loyal to Bashir - and the heavy-handed response has so far failed to stem the spread.

Security forces have mostly used tear gas and stun grenades to try to quash the protests, but demonstrators and local rights groups have also documented the use of live ammunition.

Protesters often repeat one chant: "Down, that's it." Others shout, "Down, down with Keezan," a derogatory name used to describe Islamists.

Humble beginnings

Bashir was born on Jan. 1, 1944 to a poor farming family in Hosh Bannaga, a small village consisting mainly of mud houses and dusty streets on the eastern bank of the Nile River, some 150 km (93 miles) north of the capital Khartoum.

He has often played up his humble beginnings. Earlier this month, he repeated a story he told in 2013 of how he broke a tooth while carrying concrete at a construction site where he worked as a student to pay for his education.

Bashir said he refused a silver tooth implant when he joined the military because he wanted to remember that incident whenever he looked in the mirror.

After graduating from Sudan's military academy in 1967, Bashir served in the Sudanese contingent despatched to Egypt to help in the war of attrition against Israel that began following the Six Day War in 1967.

As a young officer in the parachute regiment, he joined the armed wing of the Islamist Movement, which broke away from the Muslim Brotherhood and has ruled Sudan since Bashir took office.

The head of the junta that seized power in 1989, Bashir dissolved the military council in 1993 and has since ruled with an iron fist, accused by rights groups of violence and torture to get rid of his political opponents.

Darfur legacy

But it was Bashir's response to the insurgency in the western Darfur region that has come to define his legacy.

Facing an ICC arrest warrant over the death of an estimated 300,000 people in Darfur, Bashir has focused on his survival, holding on to power as a shield against a trial similar to that of former Yugoslav President Slobodan Milosevic.

Defying the ICC, Bashir continued to visit friendly foreign states as he tried to demonstrate he had not been cowed by the international arrest warrant issued by the court.

Bashir has sought to play on regional and international differences to improve Sudan's standing. In 2013, he hosted then Iranian President Mahmoud Ahmedinejad in Khartoum.

Two years later, Bashir joined a Saudi-led alliance that had intervened in Yemen's civil war as part of a strategy to contain Iran's expanding influence.

Bashir has also courted Turkey and Russia, at the same time as Khartoum stepped up security cooperation with Washington - hoping to speed up the country's emergence from decades of U.S. sanctions that were lifted in 2017.

Now, facing the most sustained challenge to his rule yet, Bashir will be counting on steadfast support from the security establishment he has nurtured for 30 years to see him through.

"We say to the youth, this country is yours, protect it, and if it goes up in smoke we won't be refugees, we will die here," he said this month, dressed in white robes and waving his trademark cane.

Sudanese President Omar al-Bashir does little to hide his contempt for the young men and women who have been protesting for more than a month to demand an end to his three-decade rule.

Sudanese President Omar al-Bashir does little to hide his contempt for the young men and women who have been protesting for more than a month to demand an end to his three-decade rule. Addressing soldiers this month, Bashir, a 75-year-old former paratrooper who seized power in a bloodless coup in 1989, warned the "rats to go back to their holes" and said he would only move aside for another army officer, or at the ballot box. "They said they want the army to take power. That's no problem. If someone comes in wearing khaki, we have no objection," Bashir, wearing his military uniform, told soldiers at a base in Atbara, the northern Sudanese city where the protests started. "When the army moves, it doesn't move in a vacuum. It doesn't move in support of traitors. It moves in support of the homeland," he added in colloquial Arabic. Bashir has long been a divisive figure. Since taking office in what was then Africa's largest country, he fought a protracted civil war with southern rebels which ultimately ended with the secession of South Sudan in 2011, and the loss of more than 70 per cent of Sudan's oil. Sudan has suffered prolonged periods of isolation since 1993 when the United States added Bashir's government to its list of terrorism sponsors for harbouring Islamist militants. Washington followed up with sanctions four years later. Bashir has also been indicted by the International Criminal Court (ICC) in The Hague over allegations of genocide in Sudan's Darfur region during an insurgency that began in 2003. Now, he is facing almost daily defiance at home in towns and cities across the country, protests that are still spreading despite mass arrests and a harsh crackdown by security forces using tear gas and live ammunition. Authorities say at least 30 people have died in the unrest, which started on Dec. 19 after the government tried to raise bread prices, while rights groups and local opposition figures say at least 45 have been killed. Hundreds have been injured and hundreds more detained. "The current protests represent the biggest and deepest challenge to Bashir's rule because they indicate that the crisis has reached a new level," analyst Khalid al-Tijani said. Economic meltdown Bashir's critics blame him for Sudan's marginalisation and an economic meltdown that saw inflation soar to 72 per cent by the end of 2018 and left the country unable to pay for food imports. Supporters blame a Western conspiracy designed to undermine Islamist rule in Sudan, just as Bashir rejected the ICC charges over Darfur as part of a neo-colonialist plot. In the months before the protests began, Sudanese had already been struggling to makes ends meet. The government tried to introduce reforms, devaluing the Sudanese pound and relaxing import restrictions, all to little effect. The government had hoped for quick financial support from wealthy Gulf Arab allies after Bashir sent troops to Yemen as part of Saudi-led alliance fighting rebels aligned with Iran, but help was slow to arrive. The trigger for the wave of protests was a government attempt to introduce unsubsidised bread, allowing bakeries to sell at a higher price. That came on top of the crippling, drawn-out crisis that had led to fuel and banknote shortages. The demonstrations quickly turned political, targeting ruling party offices and demanding Bashir step down. Unlike previous bouts of unrest, the protests have spread to parts of the country normally loyal to Bashir - and the heavy-handed response has so far failed to stem the spread. Security forces have mostly used tear gas and stun grenades to try to quash the protests, but demonstrators and local rights groups have also documented the use of live ammunition. Protesters often repeat one chant: "Down, that's it." Others shout, "Down, down with Keezan," a derogatory name used to describe Islamists. Humble beginnings Bashir was born on Jan. 1, 1944 to a poor farming family in Hosh Bannaga, a small village consisting mainly of mud houses and dusty streets on the eastern bank of the Nile River, some 150 km (93 miles) north of the capital Khartoum. He has often played up his humble beginnings. Earlier this month, he repeated a story he told in 2013 of how he broke a tooth while carrying concrete at a construction site where he worked as a student to pay for his education. Bashir said he refused a silver tooth implant when he joined the military because he wanted to remember that incident whenever he looked in the mirror. After graduating from Sudan's military academy in 1967, Bashir served in the Sudanese contingent despatched to Egypt to help in the war of attrition against Israel that began following the Six Day War in 1967. As a young officer in the parachute regiment, he joined the armed wing of the Islamist Movement, which broke away from the Muslim Brotherhood and has ruled Sudan since Bashir took office. The head of the junta that seized power in 1989, Bashir dissolved the military council in 1993 and has since ruled with an iron fist, accused by rights groups of violence and torture to get rid of his political opponents. Darfur legacy But it was Bashir's response to the insurgency in the western Darfur region that has come to define his legacy. Facing an ICC arrest warrant over the death of an estimated 300,000 people in Darfur, Bashir has focused on his survival, holding on to power as a shield against a trial similar to that of former Yugoslav President Slobodan Milosevic. Defying the ICC, Bashir continued to visit friendly foreign states as he tried to demonstrate he had not been cowed by the international arrest warrant issued by the court. Bashir has sought to play on regional and international differences to improve Sudan's standing. In 2013, he hosted then Iranian President Mahmoud Ahmedinejad in Khartoum. Two years later, Bashir joined a Saudi-led alliance that had intervened in Yemen's civil war as part of a strategy to contain Iran's expanding influence. Bashir has also courted Turkey and Russia, at the same time as Khartoum stepped up security cooperation with Washington - hoping to speed up the country's emergence from decades of U.S. sanctions that were lifted in 2017. Now, facing the most sustained challenge to his rule yet, Bashir will be counting on steadfast support from the security establishment he has nurtured for 30 years to see him through. "We say to the youth, this country is yours, protect it, and if it goes up in smoke we won't be refugees, we will die here," he said this month, dressed in white robes and waving his trademark cane.

Sudan's Bashir fights for survival as protests spread

Inflation based on wholesale prices fell to an 8-month low of 3.80 per cent in December 2018, on softening prices of fuel and some food items.

The Wholesale Price Index (WPI)-based inflation stood at 4.64 per cent in November 2018, and 3.58 per cent in December 2017.

According to the government data released Monday, deflation in food articles stood at 0.07 per cent in December, against 3.31 per cent in November.

Vegetables, too, saw deflation at 17.55 per cent in December, compared to 26.98 per cent in the previous month.

Also read:&nbsp;<a href="http://www.wionews.com/business-economy/high-level-debt-in-south-asian-countries-a-major-risk-world-bank-189450">High-level debt in South Asian Countries a major risk: World Bank</a>

Inflation in the 'fuel and power' basket in December slumped to 8.38 per cent, nearly half of 16.28 per cent in November. This was on account of lowering of prices of petrol and diesel through December.

Individually, in <a href="http://www.wionews.com/business-economy/crude-shocker-can-be-rude-shocks-for-economy-rbi-economists-188510">petrol and diesel</a> inflation was 1.57 per cent and 8.61 per cent, respectively, and for liquified petroleum gas (LPG) it was 6.87 per cent during December.

Among food articles, potato prices became cheaper substantially with inflation of 48.68 per cent in December, as against 86.45 per cent in November.

Inflation in pulses stood at 2.11 per cent, while in 'egg, meat and fish' it was 4.55 per cent.

Onion witnessed deflation of 63.83 per cent in December, compared to 47.60 per cent in November.

The 3.80 per cent inflation is the lowest in 8 months, and lower inflation than this was last seen in April at 3.62 per cent.

Data for retail or consumer price index-based inflation would be released later in the day.

The Reserve Bank of India (RBI) mainly takes into account retail inflation data while formulating monetary policy.

In its fifth monetary policy review for the fiscal, last month, the Reserve Bank kept interest rates unchanged but held out a promise to cut them if the upside risks to inflation do not materialise.

The central bank lowered retail inflation projection to 2.7-3.2 per cent for the second half of the current fiscal, citing normal monsoon and moderate food prices.

Inflation based on wholesale prices fell to an 8-month low of 3.80 per cent in December 2018, on softening prices of fuel and some food items. The Wholesale Price Index (WPI)-based inflation stood at 4.

Inflation based on wholesale prices fell to an 8-month low of 3.80 per cent in December 2018, on softening prices of fuel and some food items. The Wholesale Price Index (WPI)-based inflation stood at 4.64 per cent in November 2018, and 3.58 per cent in December 2017. According to the government data released Monday, deflation in food articles stood at 0.07 per cent in December, against 3.31 per cent in November. Vegetables, too, saw deflation at 17.55 per cent in December, compared to 26.98 per cent in the previous month. Also read: High-level debt in South Asian Countries a major risk: World Bank Inflation in the 'fuel and power' basket in December slumped to 8.38 per cent, nearly half of 16.28 per cent in November. This was on account of lowering of prices of petrol and diesel through December. Individually, in petrol and diesel inflation was 1.57 per cent and 8.61 per cent, respectively, and for liquified petroleum gas (LPG) it was 6.87 per cent during December. Among food articles, potato prices became cheaper substantially with inflation of 48.68 per cent in December, as against 86.45 per cent in November. Inflation in pulses stood at 2.11 per cent, while in 'egg, meat and fish' it was 4.55 per cent. Onion witnessed deflation of 63.83 per cent in December, compared to 47.60 per cent in November. The 3.80 per cent inflation is the lowest in 8 months, and lower inflation than this was last seen in April at 3.62 per cent. Data for retail or consumer price index-based inflation would be released later in the day. The Reserve Bank of India (RBI) mainly takes into account retail inflation data while formulating monetary policy. In its fifth monetary policy review for the fiscal, last month, the Reserve Bank kept interest rates unchanged but held out a promise to cut them if the upside risks to inflation do not materialise. The central bank lowered retail inflation projection to 2.7-3.2 per cent for the second half of the current fiscal, citing normal monsoon and moderate food prices.

WPI inflation at 8-month low of 3.80% in December on softening fuel, food prices

<a href="http://www.wionews.com/business-economy/indias-retail-inflation-rate-hits-17-month-low-in-november-183540">Inflation</a> seems to have become a double-edged sword for policymakers with political opponents attacking the government over farmers getting hit due to low prices for agricultural produce, even as the rate of price rise in 2018 has mostly been contained within the targeted comfort zone.

The data showed retail as well as wholesale price inflation remaining low for the most part of the year, though spikes in petrol and diesel prices came as a spoiler.

The retail inflation, measured as per the Consumer Price Index (CPI), remained mostly below 5 per cent, within the RBI's comfort level of 4 per cent with a bias of plus/minus 2 per cent. January was the only month when it crossed 5 per cent.

The Wholesale Price Index (WPI) based inflation is now at a 3-month low of 4.64 per cent, having oscillated in a range of 2.74-5.68 per cent during the year.

The latest data puts retail inflation for November at the year's lowest level of 2.33 per cent, mainly due to low prices of food articles, coupled with deflation in some agricultural products — which is good news for consumers as well as the government and the RBI.

But, this same situation has also led to concerns about the falling prices of agricultural produce resulting in a crisis for farmers. The crisis has got further compounded for those having taken farm loans and there have been reports from various parts of the country about farmers failing to recover even input cost for some commodities including onion.

The year saw multiple agitations by farmers demanding better price of their produce and also effective measures to support the farming sector. The farmers' distress also became a key election issue during recently-held assembly polls and may again be in focus during the 2019 national elections.

In the past, high inflation has been a bigger headache for governments and policymakers.

SBI's Group Chief Economic Adviser Soumya Kanti Ghosh said the government needs to support the rural sector through some sort of price or income support scheme.

"The decline in inflation is largely driven by food, but the recent meltdown in oil will help the numbers further. While the decline in food inflation is comforting for consumers, it is not good news for farmers," Ghosh said.&nbsp;

Unlike in past, farmers have started to realise that short-term loan waivers are not going to work on a durable basis and they want better solutions including incentives to the farm sector, subsidy, low-cost power and irrigation facilities, experts feel.

Several farmer leaders have alleged the government was not heeding to their demands for a reasonable minimum support price (MSP) and the hike announced by the Centre has not matched their expectations.

Edelweiss Securities' economist Madhavi Arora said the terms of trade have been unfavourable for the agriculture sector as despite higher MSPs announced this year, the ground impact has remained modest and food inflation continues to plunge further.

JNU Professor Kamal Mitra Chenoy said it will not be easy for the government to contain the farmers' distress as it is too late to take any effective measure and loan waivers are short-sighted steps.

"Deflation in farm products, while beneficial for consumers, can hurt the income of farmers. It is therefore extremely important to take forward reforms in the marketing and distribution of agricultural produce, which will lead to better remuneration for the farmer," industry chamber CII's Director General Chandrajit Banerjee said.

Greater investment in agriculture is also required including for rural infrastructure, irrigation, storage and warehousing facilities, he added.

The industry body said inflation turned out to be lower than expected in 2018, primarily due to moderation in prices of food products, while on the other hand inflation in fuel and other products in the CPI basket have been higher.

This trend may be reversed in the coming year as fuel prices moderate on lower oil prices and a stable rupee. Food prices may move up from current low levels, but overall retail inflation is expected to remain within the 4 per cent target of the RBI, Banerjee added.&nbsp;

Ghosh also said inflation outlook looks significantly benign.

"We expect inflation trajectory to stay decisively below 4 per cent at least in the first half of 2019. Inflation till March will stay below 3.5 per cent.&nbsp;

Global outlook looks wobbly. This will also impact India's growth prospects," he said.

Arora said sustained lower inflation should open up space for easing of interest rates in the first half of 2019.

RBI has lowered its inflation projection to 2.7-3.2 per cent for the second half of the current fiscal, citing normal monsoon and moderate food prices.&nbsp;

For the first half of next fiscal, retail inflation has been pegged at 3.8-4.2 per cent.&nbsp;

Inflation seems to have become a double-edged sword for policymakers with political opponents attacking the government over farmers getting hit due to low prices for agricultural produce, even as the rate of price rise in 2018 has mostly been contained within the targeted comfort zone.

Inflation seems to have become a double-edged sword for policymakers with political opponents attacking the government over farmers getting hit due to low prices for agricultural produce, even as the rate of price rise in 2018 has mostly been contained within the targeted comfort zone. The data showed retail as well as wholesale price inflation remaining low for the most part of the year, though spikes in petrol and diesel prices came as a spoiler. The retail inflation, measured as per the Consumer Price Index (CPI), remained mostly below 5 per cent, within the RBI's comfort level of 4 per cent with a bias of plus/minus 2 per cent. January was the only month when it crossed 5 per cent. The Wholesale Price Index (WPI) based inflation is now at a 3-month low of 4.64 per cent, having oscillated in a range of 2.74-5.68 per cent during the year. The latest data puts retail inflation for November at the year's lowest level of 2.33 per cent, mainly due to low prices of food articles, coupled with deflation in some agricultural products — which is good news for consumers as well as the government and the RBI. But, this same situation has also led to concerns about the falling prices of agricultural produce resulting in a crisis for farmers. The crisis has got further compounded for those having taken farm loans and there have been reports from various parts of the country about farmers failing to recover even input cost for some commodities including onion. The year saw multiple agitations by farmers demanding better price of their produce and also effective measures to support the farming sector. The farmers' distress also became a key election issue during recently-held assembly polls and may again be in focus during the 2019 national elections. In the past, high inflation has been a bigger headache for governments and policymakers. SBI's Group Chief Economic Adviser Soumya Kanti Ghosh said the government needs to support the rural sector through some sort of price or income support scheme. "The decline in inflation is largely driven by food, but the recent meltdown in oil will help the numbers further. While the decline in food inflation is comforting for consumers, it is not good news for farmers," Ghosh said. Unlike in past, farmers have started to realise that short-term loan waivers are not going to work on a durable basis and they want better solutions including incentives to the farm sector, subsidy, low-cost power and irrigation facilities, experts feel. Several farmer leaders have alleged the government was not heeding to their demands for a reasonable minimum support price (MSP) and the hike announced by the Centre has not matched their expectations. Edelweiss Securities' economist Madhavi Arora said the terms of trade have been unfavourable for the agriculture sector as despite higher MSPs announced this year, the ground impact has remained modest and food inflation continues to plunge further. JNU Professor Kamal Mitra Chenoy said it will not be easy for the government to contain the farmers' distress as it is too late to take any effective measure and loan waivers are short-sighted steps. "Deflation in farm products, while beneficial for consumers, can hurt the income of farmers. It is therefore extremely important to take forward reforms in the marketing and distribution of agricultural produce, which will lead to better remuneration for the farmer," industry chamber CII's Director General Chandrajit Banerjee said. Greater investment in agriculture is also required including for rural infrastructure, irrigation, storage and warehousing facilities, he added. The industry body said inflation turned out to be lower than expected in 2018, primarily due to moderation in prices of food products, while on the other hand inflation in fuel and other products in the CPI basket have been higher. This trend may be reversed in the coming year as fuel prices moderate on lower oil prices and a stable rupee. Food prices may move up from current low levels, but overall retail inflation is expected to remain within the 4 per cent target of the RBI, Banerjee added. Ghosh also said inflation outlook looks significantly benign. "We expect inflation trajectory to stay decisively below 4 per cent at least in the first half of 2019. Inflation till March will stay below 3.5 per cent. Global outlook looks wobbly. This will also impact India's growth prospects," he said. Arora said sustained lower inflation should open up space for easing of interest rates in the first half of 2019. RBI has lowered its inflation projection to 2.7-3.2 per cent for the second half of the current fiscal, citing normal monsoon and moderate food prices. For the first half of next fiscal, retail inflation has been pegged at 3.8-4.2 per cent.

Inflation in 2018: Data shows price rise within comfort zone, but farmers hit

India's retail inflation rate dropped in November, which should increase the chances of <a href="http://www.wionews.com/india-news/will-uphold-autonomy-of-rbi-new-governor-shaktikanta-das-183476">the new central bank governor keeping interest rates on hold</a> at his first policy meeting, but falling food prices could hurt a ruling party facing a revolt over low farm incomes.

The inflation rate, which includes food and energy prices, fell to 2.33 percent on an annual basis, the smallest increase since June 2017 and remaining below the Reserve Bank of India's (RBI) medium-term target of 4 percent for a fourth straight month.

The October inflation rate was revised to 3.38 percent from 3.31 percent, and a Reuters poll showed analysts expected 2.8 percent in November, with projections ranging from 2.26 to 2.82 percent.

Falling oil prices in recent months have eased inflationary pressure on India, a major fuel importer. Since early October, Brent crude prices have dropped by nearly 30 percent to about $61 per barrel.

That has helped India's rupee which has strengthened by around 2 percent against the dollar over the same period after months of record lows.

India's central bank kept interest rates unchanged at a policy meeting on Dec. 5 to provide support for an economy that has lost some momentum, in a decision that was widely expected as inflation had eased significantly.

The November data came after Shaktikanta Das was appointed RBI governor following the unexpected resignation on Monday of Urjit Patel.

Most economists expect that the central bank's board, at the new governor's first policy meeting on Feb. 7, will keep the repo rate unchanged at 6.5 percent if low inflation persists.

"The sharp easing in the headline CPI inflation reflects a combination of favorable factors such as the correction in retail fuel prices (and) discomfiting factors such as a deeper disinflation in food prices," said Aditi Nayar, an economist at ICRA.

Both Nayar and Vivek Kumar, a senior economist at Yes Bank, said they expect the RBI will change their monetary policy stance to 'neutral' in February from 'calibrated tightening' currently, making a rate rise less likely.

Some economists have even flagged the possibility the RBI could ease monetary policy to support growth.

POLITICAL FALLOUT

Food inflation fell to a negative 2.61 percent from a negative 0.86 percent in October, government data showed.

Slowing food prices are a boon for Indian consumers, but hurt the hundreds of millions of farmers that together form a politically-important voting bloc.

India's ruling party lost power in three key rural states on Tuesday, dealing Prime Minister Narendra Modi his biggest defeat since he took office in 2014 and boosting the opposition ahead of national polls next year.

As a result, Modi's government is likely to announce loan waivers to woo farmers hit by low food prices, government officials said.

November core inflation was up 5.7 percent year-on-year in November, versus 6.1 percent in October, according to analysts.

Separately, India's industrial output expanded at an annual 8.1 percent pace in November, compared with 5.7 percent forecast in a Reuters poll.

India's retail inflation rate dropped in November, which should increase the chances of the new central bank governor keeping interest rates on hold at his first policy meeting, but falling food prices could hurt a ruling party facing a revolt over low farm incomes.

India's retail inflation rate dropped in November, which should increase the chances of the new central bank governor keeping interest rates on hold at his first policy meeting, but falling food prices could hurt a ruling party facing a revolt over low farm incomes. The inflation rate, which includes food and energy prices, fell to 2.33 percent on an annual basis, the smallest increase since June 2017 and remaining below the Reserve Bank of India's (RBI) medium-term target of 4 percent for a fourth straight month. The October inflation rate was revised to 3.38 percent from 3.31 percent, and a Reuters poll showed analysts expected 2.8 percent in November, with projections ranging from 2.26 to 2.82 percent. Falling oil prices in recent months have eased inflationary pressure on India, a major fuel importer. Since early October, Brent crude prices have dropped by nearly 30 percent to about $61 per barrel. That has helped India's rupee which has strengthened by around 2 percent against the dollar over the same period after months of record lows. India's central bank kept interest rates unchanged at a policy meeting on Dec. 5 to provide support for an economy that has lost some momentum, in a decision that was widely expected as inflation had eased significantly. The November data came after Shaktikanta Das was appointed RBI governor following the unexpected resignation on Monday of Urjit Patel. Most economists expect that the central bank's board, at the new governor's first policy meeting on Feb. 7, will keep the repo rate unchanged at 6.5 percent if low inflation persists. "The sharp easing in the headline CPI inflation reflects a combination of favorable factors such as the correction in retail fuel prices (and) discomfiting factors such as a deeper disinflation in food prices," said Aditi Nayar, an economist at ICRA. Both Nayar and Vivek Kumar, a senior economist at Yes Bank, said they expect the RBI will change their monetary policy stance to 'neutral' in February from 'calibrated tightening' currently, making a rate rise less likely. Some economists have even flagged the possibility the RBI could ease monetary policy to support growth. POLITICAL FALLOUT Food inflation fell to a negative 2.61 percent from a negative 0.86 percent in October, government data showed. Slowing food prices are a boon for Indian consumers, but hurt the hundreds of millions of farmers that together form a politically-important voting bloc. India's ruling party lost power in three key rural states on Tuesday, dealing Prime Minister Narendra Modi his biggest defeat since he took office in 2014 and boosting the opposition ahead of national polls next year. As a result, Modi's government is likely to announce loan waivers to woo farmers hit by low food prices, government officials said. November core inflation was up 5.7 percent year-on-year in November, versus 6.1 percent in October, according to analysts. Separately, India's industrial output expanded at an annual 8.1 percent pace in November, compared with 5.7 percent forecast in a Reuters poll.

India's retail inflation rate hits 17-month low in November

<a href="http://www.wionews.com/world/us-midterm-polls-republican-martha-mcsally-loses-arizona-senate-seat-176966">US midterm polls: Republican Martha McSally loses Arizona Senate seat</a>

In a hotly contested ballot, Sinema won by taking a slice of Republican voters including women. The Senate seat was vacated by Republican Jeff Flake, a Trump critic.&nbsp;

<a href="http://www.wionews.com/entertainment/there-will-never-be-another-stan-lee-tributes-pour-in-for-the-legend-behind-marvel-176968">'There will never be another Stan Lee'; tributes pour in for the legend behind Marvel</a>

The superheroes who were all created by Lee mourned his death. Actors like Robert Downey Jr, Chris Evans and Ryan Reynolds- all paid their respect to Lee.&nbsp;

<a href="http://www.wionews.com/business-economy/natural-gas-to-overtake-coal-as-worlds-second-largest-energy-source-iea-176956">Natural gas to overtake coal as </a><a href="http://www.wionews.com/business-economy/natural-gas-to-overtake-coal-as-worlds-second-largest-energy-source-iea-176956">world's</a><a href="http://www.wionews.com/business-economy/natural-gas-to-overtake-coal-as-worlds-second-largest-energy-source-iea-176956"> second largest energy source: IEA</a>

The Paris-based IEA said in its World Energy Outlook 2018 that energy demand would grow by more than a quarter between 2017 and 2040 assuming more efficient use of energy - but would rise by twice that much without such improvements.

<a href="http://www.wionews.com/sports/djokovic-backs-federer-in-preferential-treatment-row-176953">Djokovic backs Federer in preferential treatment row</a>

Benneteau was particularly referring to the Australian Open where he said 20-time Grand Slam champion Federer played "12 or 13" of his 14 matches at Melbourne in the past two years at night, so avoiding the often scorching temperatures.

<a href="http://www.wionews.com/india-news/air-quality-reaches-hazardous-level-in-delhi-and-ncr-176971">Air quality reaches 'hazardous' level in Delhi's Anand Vihar</a>

The air quality in the national capital is presently in the 'hazardous' category. According to the Central Pollution Control Board, the overall Air Quality Index was recorded at 449 at Anand Vihar this morning.

US midterm polls: Republican Martha McSally loses Arizona Senate seat In a hotly contested ballot, Sinema won by taking a slice of Republican voters including women.

US midterm polls: Republican Martha McSally loses Arizona Senate seat In a hotly contested ballot, Sinema won by taking a slice of Republican voters including women. The Senate seat was vacated by Republican Jeff Flake, a Trump critic. 'There will never be another Stan Lee'; tributes pour in for the legend behind Marvel The superheroes who were all created by Lee mourned his death. Actors like Robert Downey Jr, Chris Evans and Ryan Reynolds- all paid their respect to Lee. Natural gas to overtake coal as world's second largest energy source: IEA The Paris-based IEA said in its World Energy Outlook 2018 that energy demand would grow by more than a quarter between 2017 and 2040 assuming more efficient use of energy - but would rise by twice that much without such improvements. Djokovic backs Federer in preferential treatment row Benneteau was particularly referring to the Australian Open where he said 20-time Grand Slam champion Federer played "12 or 13" of his 14 matches at Melbourne in the past two years at night, so avoiding the often scorching temperatures. Air quality reaches 'hazardous' level in Delhi's Anand Vihar The air quality in the national capital is presently in the 'hazardous' category. According to the Central Pollution Control Board, the overall Air Quality Index was recorded at 449 at Anand Vihar this morning.

News brief: Big stories of the day

<a href="http://www.wionews.com/business-economy/retail-inflation-cools-down-to-331-in-october-from-370-in-september-176891">Retail inflation cools to 3.31% in October, was at 3.70% in September</a>

Retail inflation eased to 3.31 per cent in October from 3.70 per cent which was recorded in September, news agency ANI reported on Monday.&nbsp;

<a href="http://www.wionews.com/india-news/chhattisgarh-elections-voter-turnout-recorded-at-close-to-60-as-1st-phase-of-polling-ends-176901">Chhattisgarh elections: Voter turnout recorded at 70% </a><a href="http://www.wionews.com/india-news/chhattisgarh-elections-voter-turnout-recorded-at-close-to-60-as-1st-phase-of-polling-ends-176901">as</a><a href="http://www.wionews.com/india-news/chhattisgarh-elections-voter-turnout-recorded-at-close-to-60-as-1st-phase-of-polling-ends-176901"> 1st phase of polling ends</a>

Voting has ended in the 18 seats that went to the polls in Chhattisgarh today. Voter turnout was recorded at 70 per cent.&nbsp;

<a href="http://www.wionews.com/india-news/metoo-mj-akbar-a-thorough-gentleman-woman-journalist-says-in-court-176880">#MeToo: MJ Akbar 'a thorough gentleman', woman journalist says in court</a>

A woman journalist and former colleague of MJ Akbar's came to his defence Monday, telling a Delhi court that Akbar was "a thorough journalist".&nbsp;

<a href="http://www.wionews.com/india-news/nationalism-behind-spread-of-fake-news-in-india-bbc-report-176848">Nationalism behind </a><a href="http://www.wionews.com/india-news/nationalism-behind-spread-of-fake-news-in-india-bbc-report-176848">spread</a><a href="http://www.wionews.com/india-news/nationalism-behind-spread-of-fake-news-in-india-bbc-report-176848"> of fake news in India: BBC report</a>

People in India share fake news stories with nationalistic messages for "nation building" purposes without any attempt at fact-checking, a BBC report released Monday said.

<a href="http://www.wionews.com/world/im-suffocating-take-this-bag-off-my-head-jamal-khashoggis-last-words-176839">I'm suffocating... take this bag off my head: Jamal Khashoggi's last words</a>

A Turkish newspaper has said Jamal Khashoggi's last words were: "I'm suffocating... take this bag off my head, I'm claustrophobic."&nbsp;

Retail inflation cools to 3.31% in October, was at 3.70% in September Retail inflation eased to 3.31 per cent in October from 3.70 per cent which was recorded in September, news agency ANI reported on Monday.

Retail inflation cools to 3.31% in October, was at 3.70% in September Retail inflation eased to 3.31 per cent in October from 3.70 per cent which was recorded in September, news agency ANI reported on Monday. Chhattisgarh elections: Voter turnout recorded at 70% as 1st phase of polling ends Voting has ended in the 18 seats that went to the polls in Chhattisgarh today. Voter turnout was recorded at 70 per cent. #MeToo: MJ Akbar 'a thorough gentleman', woman journalist says in court A woman journalist and former colleague of MJ Akbar's came to his defence Monday, telling a Delhi court that Akbar was "a thorough journalist". Nationalism behind spread of fake news in India: BBC report People in India share fake news stories with nationalistic messages for "nation building" purposes without any attempt at fact-checking, a BBC report released Monday said. I'm suffocating... take this bag off my head: Jamal Khashoggi's last words A Turkish newspaper has said Jamal Khashoggi's last words were: "I'm suffocating... take this bag off my head, I'm claustrophobic."

Pakistan's annual inflation rate jumped to 7 per cent in October, the highest in four years, from 5.12 per cent a month earlier, due to a steep rise in gas prices and multiple devaluations of the rupee.

On a month-on-month basis, prices spiked 2.56 per cent in October, according to data released by the Bureau of Statistics on Friday. Prices fell 0.06 per cent in September on the same basis.

The annual inflation rate is the highest since September 2014, when it had hit 7.68 per cent.

The surge in inflation was caused by a 104.91 per cent hike in gas prices. Pakistan's central bank had warned in September that rising oil prices and currency devaluations were likely to push up underlying inflation.

The country's central bank has devalued the local currency five times since December, weakening it by 26 per cent against the dollar during the period.

In September, Pakistan raised natural gas prices by up to 20 per cent, slashing consumer subsidies that were a fiscal drag on the government's budget.

In an effort to avert a looming currency crisis, Pakistan has been seeking economic assistance from the International Monetary Fund and friendly countries.

Saudi Arabia agreed to a $6 billion rescue package earlier this month and new Prime Minister Imran Khan is visiting China this week in search of fresh loans from Beijing.

Pakistan's annual inflation rate jumped to 7 per cent in October, the highest in four years, from 5.12 per cent a month earlier, due to a steep rise in gas prices and multiple devaluations of the rupee.

Pakistan's annual inflation rate jumped to 7 per cent in October, the highest in four years, from 5.12 per cent a month earlier, due to a steep rise in gas prices and multiple devaluations of the rupee. On a month-on-month basis, prices spiked 2.56 per cent in October, according to data released by the Bureau of Statistics on Friday. Prices fell 0.06 per cent in September on the same basis. The annual inflation rate is the highest since September 2014, when it had hit 7.68 per cent. The surge in inflation was caused by a 104.91 per cent hike in gas prices. Pakistan's central bank had warned in September that rising oil prices and currency devaluations were likely to push up underlying inflation. The country's central bank has devalued the local currency five times since December, weakening it by 26 per cent against the dollar during the period. In September, Pakistan raised natural gas prices by up to 20 per cent, slashing consumer subsidies that were a fiscal drag on the government's budget. In an effort to avert a looming currency crisis, Pakistan has been seeking economic assistance from the International Monetary Fund and friendly countries. Saudi Arabia agreed to a $6 billion rescue package earlier this month and new Prime Minister Imran Khan is visiting China this week in search of fresh loans from Beijing.

Pakistan October inflation at four-year high on gas price hike, rupee fall

Bangladesh's annual inflation eased in September to its lowest since March 2017, the statistics bureau said on Sunday, as food prices rose at a slower pace.

Consumer prices in September rose 5.43 per cent from a year earlier, slowing from an increase of 5.48 per cent the previous month.

Food prices were 5.42 per cent higher than a year earlier in September, lower than August's 5.97 per cent rise. In contrast, the non-food inflation rate climbed to 5.45 per cent from 4.73 per cent the previous month.

Bangladesh's annual inflation eased in September to its lowest since March 2017, the statistics bureau said on Sunday, as food prices rose at a slower pace. Consumer prices in September rose 5.

Bangladesh's annual inflation eased in September to its lowest since March 2017, the statistics bureau said on Sunday, as food prices rose at a slower pace. Consumer prices in September rose 5.43 per cent from a year earlier, slowing from an increase of 5.48 per cent the previous month. Food prices were 5.42 per cent higher than a year earlier in September, lower than August's 5.97 per cent rise. In contrast, the non-food inflation rate climbed to 5.45 per cent from 4.73 per cent the previous month.

Bangladesh inflation cools to 5.43%, lowest since March 2017

India's retail inflation likely sped up in September on higher food and fuel costs, pushed up by a battered rupee and suggesting further policy tightening from the Reserve Bank of India, a Reuters poll found.

The Indian central bank last week held interest rates unchanged, surprising many market watchers who anticipated a third consecutive hike, but shifted its stance from "neutral" to "calibrated tightening" in a nod to pricing pressures.

The median of 45 economists in the poll taken Oct. 3-9 showed inflation was expected to have accelerated to the central bank's medium-term target of 4.00 per cent last month from a year ago, higher than August's 10-month low of 3.69 per cent.

Forecasts ranged from 3.60 per cent to 4.70 per cent, with over 40 per cent of economists expecting inflation to rise above the RBI's target, almost one-third forecast it to fall below target and the remaining 11 said it would be bang on 4.00 per cent.

"Consumer price inflation is likely to have risen in September, in large part because the recent sharp fall in food inflation appears to have reversed," said Shilan Shah, a senior India economist at Capital Economics.

"Core inflation is likely to have remained elevated. Despite the RBI keeping rates on hold last week, the tightening cycle still has a little bit further to run."

Although food inflation has quickened it was subdued enough to offset some of the pain coming from the double whammy of a weak currency and rising oil prices.

The rupee tumbled to a new low of 74.395 against the US&nbsp;dollar on Tuesday and Brent crude, India's costliest import item, hit a four-year high this month.

According to a separate Reuters poll, the struggling rupee, which has lost over 16 per cent against the greenback this year so far, was not expected to reverse its losses anytime soon.

"India's macro concern at the moment is not the rupee, but liquidity. If the RBI takes care of liquidity, then other concerns should gradually subside," said Shashank Mendiratta, economist at ANZ Bank.

"The RBI to that extent has taken steps to infuse liquidity by announcing OMOs (open market operations) and the similar measure will be taken up through this fiscal year."

Wholesale price inflation probably rose to 4.90 per cent in September from 4.53 per cent in August.

The poll forecast industrial output expanded 4.0 per cent in August from a year ago compared with 6.6 per cent in July.

That prediction was probably based on slower output growth from eight core industries - accounting for nearly 40 per cent of total industrial production - with annual production cooling to 4.2 per cent in August, from 7.3 per cent a month earlier.

India's retail inflation likely sped up in September on higher food and fuel costs, pushed up by a battered rupee and suggesting further policy tightening from the Reserve Bank of India, a Reuters poll found.

India's retail inflation likely sped up in September on higher food and fuel costs, pushed up by a battered rupee and suggesting further policy tightening from the Reserve Bank of India, a Reuters poll found. The Indian central bank last week held interest rates unchanged, surprising many market watchers who anticipated a third consecutive hike, but shifted its stance from "neutral" to "calibrated tightening" in a nod to pricing pressures. The median of 45 economists in the poll taken Oct. 3-9 showed inflation was expected to have accelerated to the central bank's medium-term target of 4.00 per cent last month from a year ago, higher than August's 10-month low of 3.69 per cent. Forecasts ranged from 3.60 per cent to 4.70 per cent, with over 40 per cent of economists expecting inflation to rise above the RBI's target, almost one-third forecast it to fall below target and the remaining 11 said it would be bang on 4.00 per cent. "Consumer price inflation is likely to have risen in September, in large part because the recent sharp fall in food inflation appears to have reversed," said Shilan Shah, a senior India economist at Capital Economics. "Core inflation is likely to have remained elevated. Despite the RBI keeping rates on hold last week, the tightening cycle still has a little bit further to run." Although food inflation has quickened it was subdued enough to offset some of the pain coming from the double whammy of a weak currency and rising oil prices. The rupee tumbled to a new low of 74.395 against the US dollar on Tuesday and Brent crude, India's costliest import item, hit a four-year high this month. According to a separate Reuters poll, the struggling rupee, which has lost over 16 per cent against the greenback this year so far, was not expected to reverse its losses anytime soon. "India's macro concern at the moment is not the rupee, but liquidity. If the RBI takes care of liquidity, then other concerns should gradually subside," said Shashank Mendiratta, economist at ANZ Bank. "The RBI to that extent has taken steps to infuse liquidity by announcing OMOs (open market operations) and the similar measure will be taken up through this fiscal year." Wholesale price inflation probably rose to 4.90 per cent in September from 4.53 per cent in August. The poll forecast industrial output expanded 4.0 per cent in August from a year ago compared with 6.6 per cent in July. That prediction was probably based on slower output growth from eight core industries - accounting for nearly 40 per cent of total industrial production - with annual production cooling to 4.2 per cent in August, from 7.3 per cent a month earlier.

India inflation likely rose to RBI's four percent target in September: Poll

Philippine inflation jumped to an almost 10-year high in September, data showed Friday, putting pressure on President Rodrigo Duterte to act as the cost of food and fuel hit the country's poor in the pocket.

Consumer prices have risen every month this year, with food surging further after Typhoon Mangkhut, the world's most powerful storm in 2018, smashed into the country's northern agricultural heartland in mid-September.

Increases have been powered by a collision of factors including Duterte's massive spending on a broad infrastructure building effort, climbing oil prices and weak farm output.

Consumer price increases accelerated to 6.7 per cent, from 6.4 per cent in August, in the steepest climb since February 2009, the Philippine Statistics Authority said.

"We... understand that many are feeling the hit of a faster inflation rate, particularly those who toil so hard just to keep up," Duterte's economics team said.

The tens of millions who get by on less than $2 per day in the Philippines have been especially hard hit by the increase.

The government has boosted imports of rice, the national cereal staple, following shortages but authorities acknowledged Friday that grain prices remain "elevated" due to the typhoon.

Analyst Astro del Castillo told AFP the problem "will not be solved overnight" because some factors are beyond the government's control, such as oil prices. Global crude prices are sitting at a four-year high around $85 and there are warnings that they could break $100.

However, del Castillo said the people expect the president to do something about it.

"You've seen the (opinion) surveys. The people would like inflation to be the government's top priority," he added.

The Philippine central bank last month jacked up key rates for the fourth time this year, while also raising its inflation targets for this year and next.

Passage of a law lifting import quotas on rice and extra imports of other food items "could lead to an earlier return of inflation to within the target range in 2019", it added.

Analysts believe the pain may not be over yet, with interest rates expected to climb another full point in the next six months.

The Philippine peso has been hovering at 13-year lows, closing at 54.32 to the US dollar on Thursday -- making imports more expensive -- while the stock market has plunged about 17 per cent since December, making it one of the world's worst performers.

Philippine inflation jumped to an almost 10-year high in September, data showed Friday, putting pressure on President Rodrigo Duterte to act as the cost of food and fuel hit the country's poor in the pocket.

Philippine inflation jumped to an almost 10-year high in September, data showed Friday, putting pressure on President Rodrigo Duterte to act as the cost of food and fuel hit the country's poor in the pocket. Consumer prices have risen every month this year, with food surging further after Typhoon Mangkhut, the world's most powerful storm in 2018, smashed into the country's northern agricultural heartland in mid-September. Increases have been powered by a collision of factors including Duterte's massive spending on a broad infrastructure building effort, climbing oil prices and weak farm output. Consumer price increases accelerated to 6.7 per cent, from 6.4 per cent in August, in the steepest climb since February 2009, the Philippine Statistics Authority said. "We... understand that many are feeling the hit of a faster inflation rate, particularly those who toil so hard just to keep up," Duterte's economics team said. The tens of millions who get by on less than $2 per day in the Philippines have been especially hard hit by the increase. The government has boosted imports of rice, the national cereal staple, following shortages but authorities acknowledged Friday that grain prices remain "elevated" due to the typhoon. Analyst Astro del Castillo told AFP the problem "will not be solved overnight" because some factors are beyond the government's control, such as oil prices. Global crude prices are sitting at a four-year high around $85 and there are warnings that they could break $100. However, del Castillo said the people expect the president to do something about it. "You've seen the (opinion) surveys. The people would like inflation to be the government's top priority," he added. The Philippine central bank last month jacked up key rates for the fourth time this year, while also raising its inflation targets for this year and next. Passage of a law lifting import quotas on rice and extra imports of other food items "could lead to an earlier return of inflation to within the target range in 2019", it added. Analysts believe the pain may not be over yet, with interest rates expected to climb another full point in the next six months. The Philippine peso has been hovering at 13-year lows, closing at 54.32 to the US dollar on Thursday -- making imports more expensive -- while the stock market has plunged about 17 per cent since December, making it one of the world's worst performers.

Pressure on President Rodrigo Duterte as Philippine inflation jumps

Over the last decade, the world's major economies floated themselves out of recession on oceans of easy money and low, or even negative, interest rates.

For the moment, policymakers and analysts talk of a "Goldilocks economy" in the United States, which is enjoying low unemployment, brisk growth, improved household finances and a strengthened banking system.

But with much of the pain having subsided and US interest rates steadily rising, prominent investors and economists are shining a light on the issues that could trigger the next recession.

They point not to risky subprime mortgage lending, which sparked the last crisis 10 years ago, but instead to voracious borrowing by corporations and emerging market economies.

Martin Feldstein, chief economic adviser to President Ronald Reagan, paints a grim picture where rising interest rates could pop a debt-fueled Wall Street bubble, gutting investment portfolios and consumer confidence, and causing "another long, deep downturn."

He offered some eye-watering numbers in a column in The Wall Street Journal on Thursday, warning that a drop in stock prices back to their historical averages from current dizzying heights would eliminate $10 trillion of US household wealth, slashing consumer spending by about $400 billion, and cutting two percentage points off GDP growth.

"Add in the effects on business investment, and this spending crunch would push the economy into recession," Feldstein wrote.

Neither the Federal Reserve nor Congress are in a position to do much to respond, since there is little room to cut interest rates, and the government deficit and debt are high.

Outside the United States, liabilities may also lurk under all the accumulated debt.

Billionaire investor Stanley Druckenmiller warned that dollar-denominated borrowing by emerging markets, like Turkey, Argentina and others, meant they already are facing "a shrinkage of liquidity" as the US central bank raises interest rates.

The trigger

Federal Reserve rate hikes raise borrowing costs for companies and governments, particularly those with dollar-denominated debt, and those who need to refinance.

"My assumption is one of these hikes -- I don't know which one -- is going to trigger this thing," Druckenmiller said, according to Business Insider.

Ruchir Sharma, chief global strategist at Morgan Stanley Investment Management, said: "The Fed's tightening is already rattling emerging markets."

He worries that markets have grown "too big to fail," bloated by money which poured in following the 2008 meltdown as central banks tried to stabilize the system.

Central bank balance sheets went from $5 trillion to $17 trillion in the last decade, he wrote this month in The New York Times, swelling the value of global markets to $290 trillion, or a record 360 per cent of global Gross Domestic Product.

Meanwhile, debt held by S&amp;P 500 corporations has risen to 1.5 times earnings since 2010, near peaks that preceded past recessions.&nbsp;

The typical privately-held corporation purchased by private equity investors in that time is leveraged to six times earnings, twice what a ratings agency would consider junk, according to Sharma.

"When the American markets start feeling it, the results are likely be very different from 2008 -- corporate meltdowns rather than mortgage defaults, and bond and pension funds affected before big investment banks," he warned.

Economist Joel Naroff told AFP the fading boost of December's tax cuts, combined with stagnant wage growth, could leave consumer spending "out of gas" in the next six to nine months.

With the housing market already soft, a slowdown in the real economy could be the first shoe to drop, he added, with debt-fueled market bubbles being the second.

"My view is that the next recession will be an average recession," Naroff said, but added, "The worst-case scenarios are not unreasonable to project."

 
&nbsp;

Over the last decade, the world's major economies floated themselves out of recession on oceans of easy money and low, or even negative, interest rates. For the moment, policymakers and analysts talk of a "Goldilocks economy" in the United States, which is enjoying low unemployment, brisk growth, improved household finances and a strengthened banking system.

Over the last decade, the world's major economies floated themselves out of recession on oceans of easy money and low, or even negative, interest rates. For the moment, policymakers and analysts talk of a "Goldilocks economy" in the United States, which is enjoying low unemployment, brisk growth, improved household finances and a strengthened banking system. But with much of the pain having subsided and US interest rates steadily rising, prominent investors and economists are shining a light on the issues that could trigger the next recession. They point not to risky subprime mortgage lending, which sparked the last crisis 10 years ago, but instead to voracious borrowing by corporations and emerging market economies. Martin Feldstein, chief economic adviser to President Ronald Reagan, paints a grim picture where rising interest rates could pop a debt-fueled Wall Street bubble, gutting investment portfolios and consumer confidence, and causing "another long, deep downturn." He offered some eye-watering numbers in a column in The Wall Street Journal on Thursday, warning that a drop in stock prices back to their historical averages from current dizzying heights would eliminate $10 trillion of US household wealth, slashing consumer spending by about $400 billion, and cutting two percentage points off GDP growth. "Add in the effects on business investment, and this spending crunch would push the economy into recession," Feldstein wrote. Neither the Federal Reserve nor Congress are in a position to do much to respond, since there is little room to cut interest rates, and the government deficit and debt are high. Outside the United States, liabilities may also lurk under all the accumulated debt. Billionaire investor Stanley Druckenmiller warned that dollar-denominated borrowing by emerging markets, like Turkey, Argentina and others, meant they already are facing "a shrinkage of liquidity" as the US central bank raises interest rates. The trigger Federal Reserve rate hikes raise borrowing costs for companies and governments, particularly those with dollar-denominated debt, and those who need to refinance. "My assumption is one of these hikes -- I don't know which one -- is going to trigger this thing," Druckenmiller said, according to Business Insider. Ruchir Sharma, chief global strategist at Morgan Stanley Investment Management, said: "The Fed's tightening is already rattling emerging markets." He worries that markets have grown "too big to fail," bloated by money which poured in following the 2008 meltdown as central banks tried to stabilize the system. Central bank balance sheets went from $5 trillion to $17 trillion in the last decade, he wrote this month in The New York Times, swelling the value of global markets to $290 trillion, or a record 360 per cent of global Gross Domestic Product. Meanwhile, debt held by S&P 500 corporations has risen to 1.5 times earnings since 2010, near peaks that preceded past recessions. The typical privately-held corporation purchased by private equity investors in that time is leveraged to six times earnings, twice what a ratings agency would consider junk, according to Sharma. "When the American markets start feeling it, the results are likely be very different from 2008 -- corporate meltdowns rather than mortgage defaults, and bond and pension funds affected before big investment banks," he warned. Economist Joel Naroff told AFP the fading boost of December's tax cuts, combined with stagnant wage growth, could leave consumer spending "out of gas" in the next six to nine months. With the housing market already soft, a slowdown in the real economy could be the first shoe to drop, he added, with debt-fueled market bubbles being the second. "My view is that the next recession will be an average recession," Naroff said, but added, "The worst-case scenarios are not unreasonable to project."

Doomsayers begin to see cracks in healthy world economy

Inflation based on wholesale prices shot up to a 14-month high of 4.43 per cent in May on increasing prices of petrol and diesel as well as vegetables.

The Wholesale Price Index (WPI) based inflation stood at 3.18 per cent in April and 2.26 per cent in May last year.

According to government data released today, inflation in food articles was at 1.60 per cent in May 2018, as against 0.87 per cent in the preceding month.

Inflation in vegetables climbed to 2.51 per cent in May, while in the previous month it was (-)0.89 per cent.

Inflation in 'fuel and power' basket rose sharply to 11.22 per cent in May from 7.85 per cent in April as prices of domestic fuel increased in line with rising global crude oil rates.

Potato inflation was at a peak of 81.93 per cent, against 67.94 per cent in April.

Price rise in fruits was in double digits at 15.40 per cent, while pulses saw a deflation of 21.13 per cent.

The WPI inflation for March was revised upwards to 2.74 per cent from the provisional estimate of 2.47 per cent.

May inflation at 4.43 per cent was a 14-month peak. The previous high was in March 2017, when the WPI inflation stood at 5.11 per cent.

In its second monetary policy review for the fiscal, the Reserve Bank earlier this month hiked interest rate by 0.25 per cent-- the first hike in more than four years -- due to growing concerns about inflation stoked by rising global crude oil prices as well as domestic price increases.

The price of Indian basket of crude surged from USD 66 a barrel in April to around USD 74 currently.

Data released earlier this week showed retail inflation jumped to a 4-month high of 4.87 per cent in May on costlier food items such as fruits, vegetables and fuel. RBI mainly takes into account retail inflation data while formulating monetary policy.

The Wholesale Price Index (WPI) based inflation stood at 3.18 per cent in April and 2.26 per cent in May last year

Inflation based on wholesale prices shot up to a 14-month high of 4.43 per cent in May on increasing prices of petrol and diesel as well as vegetables. The Wholesale Price Index (WPI) based inflation stood at 3.18 per cent in April and 2.26 per cent in May last year. According to government data released today, inflation in food articles was at 1.60 per cent in May 2018, as against 0.87 per cent in the preceding month. Inflation in vegetables climbed to 2.51 per cent in May, while in the previous month it was (-)0.89 per cent. Inflation in 'fuel and power' basket rose sharply to 11.22 per cent in May from 7.85 per cent in April as prices of domestic fuel increased in line with rising global crude oil rates. Potato inflation was at a peak of 81.93 per cent, against 67.94 per cent in April. Price rise in fruits was in double digits at 15.40 per cent, while pulses saw a deflation of 21.13 per cent. The WPI inflation for March was revised upwards to 2.74 per cent from the provisional estimate of 2.47 per cent. May inflation at 4.43 per cent was a 14-month peak. The previous high was in March 2017, when the WPI inflation stood at 5.11 per cent. In its second monetary policy review for the fiscal, the Reserve Bank earlier this month hiked interest rate by 0.25 per cent-- the first hike in more than four years -- due to growing concerns about inflation stoked by rising global crude oil prices as well as domestic price increases. The price of Indian basket of crude surged from USD 66 a barrel in April to around USD 74 currently. Data released earlier this week showed retail inflation jumped to a 4-month high of 4.87 per cent in May on costlier food items such as fruits, vegetables and fuel. RBI mainly takes into account retail inflation data while formulating monetary policy.

WPI inflation rises to 14-month high of 4.43% in May on costlier fuel, veggies

India's retail inflation jumped further in May to a four-month high, primarily driven by a surge in energy prices, according to a Reuters poll of economists, suggesting more policy tightening from the central bank is coming.

On June 6, the Reserve Bank of India (RBI) raised the repo rate for the first time since 2014, by 25 basis points to 6.25 percent, as recent data showed significant increases for both inflation and growth. But the central bank kept its "neutral" policy stance unchanged.

Mounting price pressure is a concern for the RBI, with its own projections for inflation raised compared with the ones made in May.

The poll of more than 30 economists taken June 4-8 showed annual consumer price inflation likely increased to 4.83 percent last month, the highest since January and above April's 4.58 percent.

If that predicted pace is realised, May will be the seventh month in a row with inflation higher than the RBI's medium-term target of 4 percent.

"Consumer price inflation is likely to have accelerated in May, due in large part to a rise in fuel inflation," noted Shilan Shah, a senior India economist at Capital Economics. "Core inflation will also have remained elevated, and this is likely to be the case for some time."

Poll forecasts for the data, due to be released on Tuesday June 12 at 1200 GMT, ranged from 4.1 percent to 5.7 percent.

Oil prices hit a 3-1/2-year high last month, led by increasing worries of supply constraints from U.S. President Donald Trump's decision to withdraw from the 2015 Iran nuclear agreement.

India imports almost 80 percent of its oil needs and that surge poses a threat not just to inflation but also to the recovering economy, which still is the fastest-growing major economy.

"Rising crude prices would not only impact headline inflation but would also put pressure on price levels as the twin deficit goes up," noted Kunal Kundu, an economist at Societe Generale, referring to India's budget and current account gaps.

The government's plan to increase rural spending and the minimum support price for farmers ahead of general elections next year will exacerbate price pressures, and is likely to blow out the fiscal deficit target.

What has also not helped is the weakening rupee, which has shed 5.7 percent against the dollar this year.

The currency's fall is also inflationary, and increases concern about capital outflows from Asia's third-largest economy - another reason that some expect more rate hikes by the RBI.

The poll also showed the wholesale prices index likely hit a six-month high of 3.82 percent in May.

"The outlook for core inflation suggests that (the June 6) rate hike by the central bank marks the start of a modest tightening cycle rather than being a case of a one-off move," noted Shah. "We are penciling in two further 25 basis point increases in the repo rate over the next six months or so."

The poll also predicted industrial output to have risen 5.2 percent in April from a year earlier, up from 4.4 percent in March. That was likely driven by the increase in output of eight core factories - which account for nearly 40 percent of total industrial production - by 4.7 percent in April from a year earlier. The March increase was 4.4 percent.

On June 6, the Reserve Bank of India (RBI) raised the repo rate for the first time since 2014, by 25 basis points to 6.25 percent, as recent data showed significant increases for both inflation and growth. But the central bank kept its 'neutral' policy stance unchanged

India's retail inflation jumped further in May to a four-month high, primarily driven by a surge in energy prices, according to a Reuters poll of economists, suggesting more policy tightening from the central bank is coming. On June 6, the Reserve Bank of India (RBI) raised the repo rate for the first time since 2014, by 25 basis points to 6.25 percent, as recent data showed significant increases for both inflation and growth. But the central bank kept its "neutral" policy stance unchanged. Mounting price pressure is a concern for the RBI, with its own projections for inflation raised compared with the ones made in May. The poll of more than 30 economists taken June 4-8 showed annual consumer price inflation likely increased to 4.83 percent last month, the highest since January and above April's 4.58 percent. If that predicted pace is realised, May will be the seventh month in a row with inflation higher than the RBI's medium-term target of 4 percent. "Consumer price inflation is likely to have accelerated in May, due in large part to a rise in fuel inflation," noted Shilan Shah, a senior India economist at Capital Economics. "Core inflation will also have remained elevated, and this is likely to be the case for some time." Poll forecasts for the data, due to be released on Tuesday June 12 at 1200 GMT, ranged from 4.1 percent to 5.7 percent. Oil prices hit a 3-1/2-year high last month, led by increasing worries of supply constraints from U.S. President Donald Trump's decision to withdraw from the 2015 Iran nuclear agreement. India imports almost 80 percent of its oil needs and that surge poses a threat not just to inflation but also to the recovering economy, which still is the fastest-growing major economy. "Rising crude prices would not only impact headline inflation but would also put pressure on price levels as the twin deficit goes up," noted Kunal Kundu, an economist at Societe Generale, referring to India's budget and current account gaps. The government's plan to increase rural spending and the minimum support price for farmers ahead of general elections next year will exacerbate price pressures, and is likely to blow out the fiscal deficit target. What has also not helped is the weakening rupee, which has shed 5.7 percent against the dollar this year. The currency's fall is also inflationary, and increases concern about capital outflows from Asia's third-largest economy - another reason that some expect more rate hikes by the RBI. The poll also showed the wholesale prices index likely hit a six-month high of 3.82 percent in May. "The outlook for core inflation suggests that (the June 6) rate hike by the central bank marks the start of a modest tightening cycle rather than being a case of a one-off move," noted Shah. "We are penciling in two further 25 basis point increases in the repo rate over the next six months or so." The poll also predicted industrial output to have risen 5.2 percent in April from a year earlier, up from 4.4 percent in March. That was likely driven by the increase in output of eight core factories - which account for nearly 40 percent of total industrial production - by 4.7 percent in April from a year earlier. The March increase was 4.4 percent.

India May inflation likely hit a four-month high on oil price surge

Indian bonds rallied on Friday on optimism that the government will soon take steps to ease a jump in bond yields after word spread that the interim finance minister had met a handful of bankers and analysts to seek feedback on the economy.

In the meeting held late on Thursday, Piyush Goyal allayed concerns around India's fiscal deficit and rising inflation, and sought feedback on massive losses in banks' bond holdings, two participants who attended the meeting told Reuters.

Goyal wanted to know ways in which the government could help banks reduce the trading losses on their bond portfolios due to soaring yields, one of the participants said.

Some of the suggestions from the participants included issuance of floating rate bonds and bond buybacks by the government, he said.

Indian bonds have weakened to multi-year lows as global oil prices surged, causing yields to spike above 8 per cent.

The benchmark 10-year bond yield opened at a three-year high of 8.033 per cent on Friday, on worries over further rate hikes and a potentially higher fiscal deficit. However, by 0750 GMT the yield had eased to 7.92 percent.

On Wednesday, the country's central bank raised its key policy rate for the first time in four years, citing growing inflation worries due to a steep spike in oil prices and a weakening rupee.

The hike - the first since Prime Minister Narendra Modi came to power - could not have come at a worse time for a government grappling with spending constraints, voter discontent in the rural heartlands and rising oil prices.

Goyal assured the government would stick to its fiscal deficit target of 3.3 per cent, responding to concerns over fiscal slippage ahead of an election year, according to one of the participants.

The minister also said that the government's proposed plan to buy food grains at a minimum price from farmers would not be inflationary.

Goyal, who is currently the railway minister, has taken additional charge of the finance ministry temporarily until Arun Jaitley recovers after undergoing a kidney transplant.

"He was just seeking feedback and we do not know whether the government will implement any of these steps or not," another participant at the meeting told Reuters.

Piyush Goyal allayed concerns around India's fiscal deficit and rising inflation

Indian bonds rallied on Friday on optimism that the government will soon take steps to ease a jump in bond yields after word spread that the interim finance minister had met a handful of bankers and analysts to seek feedback on the economy. In the meeting held late on Thursday, Piyush Goyal allayed concerns around India's fiscal deficit and rising inflation, and sought feedback on massive losses in banks' bond holdings, two participants who attended the meeting told Reuters. Goyal wanted to know ways in which the government could help banks reduce the trading losses on their bond portfolios due to soaring yields, one of the participants said. Some of the suggestions from the participants included issuance of floating rate bonds and bond buybacks by the government, he said. Indian bonds have weakened to multi-year lows as global oil prices surged, causing yields to spike above 8 per cent. The benchmark 10-year bond yield opened at a three-year high of 8.033 per cent on Friday, on worries over further rate hikes and a potentially higher fiscal deficit. However, by 0750 GMT the yield had eased to 7.92 percent. On Wednesday, the country's central bank raised its key policy rate for the first time in four years, citing growing inflation worries due to a steep spike in oil prices and a weakening rupee. The hike - the first since Prime Minister Narendra Modi came to power - could not have come at a worse time for a government grappling with spending constraints, voter discontent in the rural heartlands and rising oil prices. Goyal assured the government would stick to its fiscal deficit target of 3.3 per cent, responding to concerns over fiscal slippage ahead of an election year, according to one of the participants. The minister also said that the government's proposed plan to buy food grains at a minimum price from farmers would not be inflationary. Goyal, who is currently the railway minister, has taken additional charge of the finance ministry temporarily until Arun Jaitley recovers after undergoing a kidney transplant. "He was just seeking feedback and we do not know whether the government will implement any of these steps or not," another participant at the meeting told Reuters.

Indian bonds rally on hopes government will bolster markets

The BSE benchmark Sensex slipped below the key 35,000-mark in early trade today following losses in banking, power, realty and capital goods stocks.

Investors are cautious ahead of RBI's policy decision due&nbsp;tomorrow, brokers said.

The RBI's Monetary Policy Committee began its three-day meeting yesterday amid speculation that it may hike the key interest rate for the first time in over four years on account of firming inflation.

The 30-share index, which had lost 310.49 points in the previous two sessions, fell further by 101.70 points, or 0.29 per cent, to 34,910.19.

Sectoral indices led by power, banking, realty, capital goods and PSU declined up to 1.20 per cent.

The NSE Nifty also shed 33.55 points, or 0.32 per cent, to 10,594.95.

Shares of Powr Grid, Yes Bank, Bharti Airtel, Dr Reddy's, Infosys, Hero MotoCorp, L&T, HUL, Axis Bank, Bajaj Auto, HDFC Ltd and NTPC were trading in the negative zone with losses of up to 2.41 per cent.

Meanwhile, domestic institutional investors (DIIs) sold shares worth a net Rs 712.41 crore, while foreign portfolio investors (FPIs) bought shares worth Rs 2,354.03 crore yesterday, as per provisional data released by the stock exchanges.

Among other Asian markets, Hong Kong's Hang Seng fell 0.05 per cent, while Japan's Nikkei was up 0.12 per cent in early trade. Shanghai Composite Index also rose 0.02 per cent.

The US Dow Jones Industrial Average ended 0.72 per cent higher in yesterday's trade.

The RBI's Monetary Policy Committee began its three-day meeting yesterday amid speculation that it may hike the key interest rate for the first time in over four years on account of firming inflation

The BSE benchmark Sensex slipped below the key 35,000-mark in early trade today following losses in banking, power, realty and capital goods stocks. Investors are cautious ahead of RBI's policy decision due tomorrow, brokers said. The RBI's Monetary Policy Committee began its three-day meeting yesterday amid speculation that it may hike the key interest rate for the first time in over four years on account of firming inflation. The 30-share index, which had lost 310.49 points in the previous two sessions, fell further by 101.70 points, or 0.29 per cent, to 34,910.19. Sectoral indices led by power, banking, realty, capital goods and PSU declined up to 1.20 per cent. The NSE Nifty also shed 33.55 points, or 0.32 per cent, to 10,594.95. Shares of Powr Grid, Yes Bank, Bharti Airtel, Dr Reddy's, Infosys, Hero MotoCorp, L&T, HUL, Axis Bank, Bajaj Auto, HDFC Ltd and NTPC were trading in the negative zone with losses of up to 2.41 per cent. Meanwhile, domestic institutional investors (DIIs) sold shares worth a net Rs 712.41 crore, while foreign portfolio investors (FPIs) bought shares worth Rs 2,354.03 crore yesterday, as per provisional data released by the stock exchanges. Among other Asian markets, Hong Kong's Hang Seng fell 0.05 per cent, while Japan's Nikkei was up 0.12 per cent in early trade. Shanghai Composite Index also rose 0.02 per cent. The US Dow Jones Industrial Average ended 0.72 per cent higher in yesterday's trade.

Sensex down 102 points in cautious trade

Activity in India's manufacturing sector grew at a weaker pace in May from the previous month, a business survey showed&nbsp;on Friday, while inflationary pressures picked up again amid rising oil prices in another sign that an interest rate hike is around the corner.

A slower expansion in output and domestic demand helped push the Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, down to 51.2 in May from April's 51.6. It also lagged a Reuters poll median of 51.5.

But it remained above the 50-mark that separates growth from contraction for the tenth month in a row.

More significantly, the survey yet again showed a build-up of inflationary pressures that would no doubt be watched closely by policymakers.

It backs a Reuters poll of economists that forecast the Reserve Bank of India (RBI) to hike rates in August, a dramatic turnaround from just a month ago when a survey predicted an increase only in the second half of 2019.

"A build-up of inflationary pressures re-emerged with input cost and output charge inflation at the strongest since February, due to the upswing in global oil prices," Aashna Dodhia, an economist at IHS Markit, said in a release.

A surge in oil prices over the past few months means India's retail inflation has remained above the RBI's target of 4 percent for six months, increasing pressure on the central bank to act sooner than previously expected.

"In efforts to contain inflation and maintain financial stability, it is likely that the RBI will raise interest rates over the summer," said Dodhia.

Friday's&nbsp;survey also showed foreign demand for manufactured goods rose at the strongest pace&nbsp;in three months, though the same cannot be inferred about domestic demand.

A sub-index tracking overall demand declined to 51.6 last month from 52.0 in April, suggesting domestic demand may still be recovering from the botched implementation of a new national tax system last year.

So overall output expanded at a slower pace, leading firms to hire only modestly, and optimism about future output declined after hitting a nine-month high in April.

India GDP grew at its fastest annual pace in nearly two years during the January-March quarter, expanding a better-than-expected 7.7 percent, and retaining its title as the fastest growing major economy by beating China's growth rate of 6.8 percent.

A slower expansion in output and domestic demand helped push the Nikkei Manufacturing Purchasing Managers' Index

Activity in India's manufacturing sector grew at a weaker pace in May from the previous month, a business survey showed on Friday, while inflationary pressures picked up again amid rising oil prices in another sign that an interest rate hike is around the corner. A slower expansion in output and domestic demand helped push the Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, down to 51.2 in May from April's 51.6. It also lagged a Reuters poll median of 51.5. But it remained above the 50-mark that separates growth from contraction for the tenth month in a row. More significantly, the survey yet again showed a build-up of inflationary pressures that would no doubt be watched closely by policymakers. It backs a Reuters poll of economists that forecast the Reserve Bank of India (RBI) to hike rates in August, a dramatic turnaround from just a month ago when a survey predicted an increase only in the second half of 2019. "A build-up of inflationary pressures re-emerged with input cost and output charge inflation at the strongest since February, due to the upswing in global oil prices," Aashna Dodhia, an economist at IHS Markit, said in a release. A surge in oil prices over the past few months means India's retail inflation has remained above the RBI's target of 4 percent for six months, increasing pressure on the central bank to act sooner than previously expected. "In efforts to contain inflation and maintain financial stability, it is likely that the RBI will raise interest rates over the summer," said Dodhia. Friday's survey also showed foreign demand for manufactured goods rose at the strongest pace in three months, though the same cannot be inferred about domestic demand. A sub-index tracking overall demand declined to 51.6 last month from 52.0 in April, suggesting domestic demand may still be recovering from the botched implementation of a new national tax system last year. So overall output expanded at a slower pace, leading firms to hire only modestly, and optimism about future output declined after hitting a nine-month high in April. India GDP grew at its fastest annual pace in nearly two years during the January-March quarter, expanding a better-than-expected 7.7 percent, and retaining its title as the fastest growing major economy by beating China's growth rate of 6.8 percent.

Indian manufacturing PMI growth slows in May, inflationary pressures pick up

India will take a long-term view on the retail pricing of petrol and diesel to shield consumers from volatility in global markets, the government said on Wednesday, suggesting it could change the way pump prices are calculated.

Prices of diesel and petrol in India have surged to a record high, stoking opposition criticism of Prime Minister Narendra Modi's administration for causing hardship to ordinary people.

Rising global crude prices are largely behind the surge, but fuel is also heavily taxed by India's state and federal authorities, accounting for about half the cost of petrol and 40 per cent of the diesel price. In Delhi, petrol costs 77.17 rupees&nbspa litre and diesel costs 68.34 rupees a litre.

"The government is keen that instead of having an ad hoc measure it may be desirable to have a long-term view which addresses not only the volatility but also takes care of the unnecessary ambiguity arising out of frequent ups and downs," Law Minister Ravi Shankar Prasad told a news conference.

India is particularly at risk from stronger global prices for crude oil as it is the No.3 importer of the commodity buying about 80 percent of its oil needs. India&nbsphas a surplus of refined products, but local prices of petrol and diesel are linked to Singapore gasoline prices and Arab Gulf diesel prices.

The pump price of the two locally-refined fuels also include import tax on the two products which the government could tinker with to help customers, industry sources say.

M. K. Surana, chairman of state-run fuel retailer and refiner Hindustan Petroleum Corp, said the government should review taxation of petrol and diesel to provide relief to the customer.

"The long term solution is to bring all the petroleum products under goods and service tax that will rationalise the taxation structure," he added.

Opposition leaders have criticised the government for failing to rein in rising fuel prices, a politically-sensitive issue in one of the world's biggest economies.

Rising pump prices are already adding to inflationary pressure and are strengthening the case for a rate hike.

India's Economic Survey, issued by the finance ministry at the end of January, estimated a $10 per barrel rise in global oil prices reduced growth by 0.2-0.3 percentage points, increased wholesale price inflation by about 1.7 percentage points and worsens the current account deficit by about $9-10 billion.

Former finance minister P. Chidambaram of the opposition Congress Party tweeted that there was space to reduce petrol prices by about 25 rupees a litre.

"Fuel price hike has a cascading effect on inflation and the Reserve Bank of India will have to front-load interest rate hikes now," said Rupa Rege Nitsure, group chief economist at L&T Finance Holdings in Mumbai.

Rising pump prices are already adding to inflationary pressure and are strengthening the case for a rate hike.

India will take a long-term view on the retail pricing of petrol and diesel to shield consumers from volatility in global markets, the government said on Wednesday, suggesting it could change the way pump prices are calculated. Prices of diesel and petrol in India have surged to a record high, stoking opposition criticism of Prime Minister Narendra Modi's administration for causing hardship to ordinary people. Rising global crude prices are largely behind the surge, but fuel is also heavily taxed by India's state and federal authorities, accounting for about half the cost of petrol and 40 per cent of the diesel price. In Delhi, petrol costs 77.17 rupees&nbspa litre and diesel costs 68.34 rupees a litre. "The government is keen that instead of having an ad hoc measure it may be desirable to have a long-term view which addresses not only the volatility but also takes care of the unnecessary ambiguity arising out of frequent ups and downs," Law Minister Ravi Shankar Prasad told a news conference. India is particularly at risk from stronger global prices for crude oil as it is the No.3 importer of the commodity buying about 80 percent of its oil needs. India&nbsphas a surplus of refined products, but local prices of petrol and diesel are linked to Singapore gasoline prices and Arab Gulf diesel prices. The pump price of the two locally-refined fuels also include import tax on the two products which the government could tinker with to help customers, industry sources say. M. K. Surana, chairman of state-run fuel retailer and refiner Hindustan Petroleum Corp, said the government should review taxation of petrol and diesel to provide relief to the customer. "The long term solution is to bring all the petroleum products under goods and service tax that will rationalise the taxation structure," he added. Opposition leaders have criticised the government for failing to rein in rising fuel prices, a politically-sensitive issue in one of the world's biggest economies. Rising pump prices are already adding to inflationary pressure and are strengthening the case for a rate hike. India's Economic Survey, issued by the finance ministry at the end of January, estimated a $10 per barrel rise in global oil prices reduced growth by 0.2-0.3 percentage points, increased wholesale price inflation by about 1.7 percentage points and worsens the current account deficit by about $9-10 billion. Former finance minister P. Chidambaram of the opposition Congress Party tweeted that there was space to reduce petrol prices by about 25 rupees a litre. "Fuel price hike has a cascading effect on inflation and the Reserve Bank of India will have to front-load interest rate hikes now," said Rupa Rege Nitsure, group chief economist at L&T Finance Holdings in Mumbai.

Government keen take long-term view on petrol prices: Ravi Shankar Prasad

Even as monsoon is predicted to be normal this year, its uneven distribution could spike food prices, and inflation is likely to edge further, says a report.

According to Dun & Bradstreet, rising fuel prices in India, which touched an all-time high, is likely to feed into other segments and keep the rate of inflation higher.

D&B expects CPI inflation to be in the range of 4.6-4.7 per cent and WPI inflation around 3.6-3.8 per cent this month.

"The assumption of a normal monsoon has been one of the primary factors considered for improvement in demand in the current year.&nbsp

"However, spatial distribution of rainfall needs to be monitored carefully before setting in firm expectations as uneven distribution of rainfall could flare up food inflation," said Arun Singh, Lead Economist D&B India.

Moreover, factors like geopolitical risks, escalating tensions in global trade, volatility in international crude oil prices and sharp depreciation in rupee underline the upside risk to inflation.

"Domestically, we look forward for the government to fulfil its commitment to revive investments, execute infrastructure projects and continue the policy momentum," Singh said.

The report further said the consistent growth clocked by the capital and infrastructure goods sector is likely to support the IIP growth rates going ahead.

D&B expects Index of Industrial Production (IIP) to have grown by 6.5-7.5 per cent during April this year.

The report further said the consistent growth clocked by the capital and infrastructure goods sector is likely to support the IIP growth rates going ahead.

Even as monsoon is predicted to be normal this year, its uneven distribution could spike food prices, and inflation is likely to edge further, says a report. According to Dun & Bradstreet, rising fuel prices in India, which touched an all-time high, is likely to feed into other segments and keep the rate of inflation higher. D&B expects CPI inflation to be in the range of 4.6-4.7 per cent and WPI inflation around 3.6-3.8 per cent this month. "The assumption of a normal monsoon has been one of the primary factors considered for improvement in demand in the current year. "However, spatial distribution of rainfall needs to be monitored carefully before setting in firm expectations as uneven distribution of rainfall could flare up food inflation," said Arun Singh, Lead Economist D&B India. Moreover, factors like geopolitical risks, escalating tensions in global trade, volatility in international crude oil prices and sharp depreciation in rupee underline the upside risk to inflation. "Domestically, we look forward for the government to fulfil its commitment to revive investments, execute infrastructure projects and continue the policy momentum," Singh said. The report further said the consistent growth clocked by the capital and infrastructure goods sector is likely to support the IIP growth rates going ahead. D&B expects Index of Industrial Production (IIP) to have grown by 6.5-7.5 per cent during April this year.

Uneven monsoon could spike food prices, inflation to edge higher: Report

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