Inflation based on wholesale prices shot up to 3.18 per cent in April on increasing prices of petrol and diesel as well as fruits and vegetables.

The Wholesale Price Index (WPI) based inflation stood at 2.47 per cent in March and 3.85 per cent in April last year.

According to government data released today, inflation in food articles was at 0.87 per cent in April 2018, as against a deflation of 0.29 per cent in the preceding month.

Deflation in vegetables was 0.89 per cent in April, while in the previous month it was 2.70 per cent.

Inflation in 'fuel and power' basket rose sharply to 7.85 per cent in April from 4.70 per cent in March as prices of domestic fuel increased in line with rising global crude oil rates.

Inflation in fruits was in double digits at 19.47 per cent in April, up from 9.26 per cent in the previous month.

The WPI inflation for February was revised upwards to 2.74 per cent from the provisional estimate of 2.48 per cent.

In its first monetary policy review for the fiscal, the Reserve Bank last month maintained status-quo on interest rate citing inflationary concerns.

Data on retail inflation is scheduled to be released later in the day. RBI mainly takes into account retail inflation data while formulating monetary policy.

The central bank revised downward forecast for retail inflation to 4.7-5.1 per cent for April-September and 4.4 per cent for October-March.&nbsp

According to government data released today, inflation in food articles was at 0.87 per cent in April 2018, as against a deflation of 0.29 per cent in the preceding month

Inflation based on wholesale prices shot up to 3.18 per cent in April on increasing prices of petrol and diesel as well as fruits and vegetables. The Wholesale Price Index (WPI) based inflation stood at 2.47 per cent in March and 3.85 per cent in April last year. According to government data released today, inflation in food articles was at 0.87 per cent in April 2018, as against a deflation of 0.29 per cent in the preceding month. Deflation in vegetables was 0.89 per cent in April, while in the previous month it was 2.70 per cent. Inflation in 'fuel and power' basket rose sharply to 7.85 per cent in April from 4.70 per cent in March as prices of domestic fuel increased in line with rising global crude oil rates. Inflation in fruits was in double digits at 19.47 per cent in April, up from 9.26 per cent in the previous month. The WPI inflation for February was revised upwards to 2.74 per cent from the provisional estimate of 2.48 per cent. In its first monetary policy review for the fiscal, the Reserve Bank last month maintained status-quo on interest rate citing inflationary concerns. Data on retail inflation is scheduled to be released later in the day. RBI mainly takes into account retail inflation data while formulating monetary policy. The central bank revised downward forecast for retail inflation to 4.7-5.1 per cent for April-September and 4.4 per cent for October-March.

WPI inflation rises to 3.18% in April on costlier fuel, fruits

A business survey showed on Wednesday that Indian factory growth accelerated in April on strong domestic demand and output, while price pressures were subdued in a comforting sign for the central bank, the Reserve Bank of India, as it seeks 
to temper inflation without hurting the economy.

The Nikkei Manufacturing Purchasing Managers' Index (PMI), compiled by IHS Markit, rose to 51.6 last month from March's 51.0, as predicted by a Reuters poll and above the 50-point mark that separates growth from contraction for a ninth straight month.

"The Indian manufacturing economy started the quarter on a slightly stronger footing as growth picked-up from March's five-month low, buoyed by stronger demand conditions," Aashna Dodhia, an economist at IHS Markit, said in a press 
release.

"Encouragingly, PMI data highlighted inflationary pressures moderated for the second month in a row, with input cost and output charge inflation at the weakest since September 2017 and July 2017 respectively."

Inflation is forecast to average 4.7 per cent in the fiscal year ending next March, and 4.9 per cent the following year, a separate Reuters poll showed.

While retail inflation has eased this year and hit a five-month low of 4.28 per cent in March it remained above the Reserve Bank of India's (RBI) medium-term target of 4 per cent.

The RBI has kept interest rates steady after a 25 basis-point cut to the repo rate in August last year. It is forecast to keep the rates unchanged until the second half of next year.

In the latest survey the new orders sub-index, a proxy for domestic demand, rose to 52.0 in April, encouraging firms to increase output and resume hiring.

Optimism about future output in April was the strongest since July 2017. That suggests Asia's third largest economy is in good heart as disruptions from a shock ban on high-value currency notes in November 2016 and the chaotic launch of a goods and services tax (GST) in July fade.

As per a Reuters poll, India will claim top spot as the world's fastest-growing major economy this year, but rising trade tensions between the United States and China may restrain growth.

Export orders slipped to a 5-month low in April, the PMI survey showed.

(With inputs from Reuters)

The Nikkei Manufacturing Purchasing Managers' Index rose to 51.6 last month from March's 51.0 and above the 50-point mark that separates growth from contraction for a ninth straight month

A business survey showed on Wednesday that Indian factory growth accelerated in April on strong domestic demand and output, while price pressures were subdued in a comforting sign for the central bank, the Reserve Bank of India, as it seeks to temper inflation without hurting the economy. The Nikkei Manufacturing Purchasing Managers' Index (PMI), compiled by IHS Markit, rose to 51.6 last month from March's 51.0, as predicted by a Reuters poll and above the 50-point mark that separates growth from contraction for a ninth straight month. "The Indian manufacturing economy started the quarter on a slightly stronger footing as growth picked-up from March's five-month low, buoyed by stronger demand conditions," Aashna Dodhia, an economist at IHS Markit, said in a press release. "Encouragingly, PMI data highlighted inflationary pressures moderated for the second month in a row, with input cost and output charge inflation at the weakest since September 2017 and July 2017 respectively." Inflation is forecast to average 4.7 per cent in the fiscal year ending next March, and 4.9 per cent the following year, a separate Reuters poll showed. While retail inflation has eased this year and hit a five-month low of 4.28 per cent in March it remained above the Reserve Bank of India's (RBI) medium-term target of 4 per cent. The RBI has kept interest rates steady after a 25 basis-point cut to the repo rate in August last year. It is forecast to keep the rates unchanged until the second half of next year. In the latest survey the new orders sub-index, a proxy for domestic demand, rose to 52.0 in April, encouraging firms to increase output and resume hiring. Optimism about future output in April was the strongest since July 2017. That suggests Asia's third largest economy is in good heart as disruptions from a shock ban on high-value currency notes in November 2016 and the chaotic launch of a goods and services tax (GST) in July fade. As per a Reuters poll, India will claim top spot as the world's fastest-growing major economy this year, but rising trade tensions between the United States and China may restrain growth. Export orders slipped to a 5-month low in April, the PMI survey showed. (With inputs from Reuters)

India's factory growth accelerates in April on strong domestic demand

<a href="http://www.wionews.com/india-news/inflation-falls-for-third-straight-month-is-at-428-in-march-130104">Inflation falls for </a><a href="http://www.wionews.com/india-news/inflation-falls-for-third-straight-month-is-at-428-in-march-130104">third</a><a href="http://www.wionews.com/india-news/inflation-falls-for-third-straight-month-is-at-428-in-march-130104"> straight month, is at 4.28% in March</a>

Retail inflation slowed to 4.28 per cent in March, the third consecutive month of decline, mainly on account of easing food prices including vegetables, government data showed today.

<a href="http://www.wionews.com/sports/indian-star-shuttler-kidambi-srikanth-is-new-world-no-1-130094">Indian star shuttler Kidambi Srikanth is new World No. 1</a>

Kidambi Srikanth reached the top of men's singles rankings with 76895 points in the Badminton World Federation (BWF) chart which was released today. He became the first Indian shuttler to achieve the number one rank in the modern ranking system. Though legendary Indian shuttler Prakash Padukone had reached the number one spot in 1980 but at that time computerized ranking system was not implemented.

<a href="http://www.wionews.com/india-news/laziness-incompetence-hidden-motives-of-previous-govt-hurt-indias-defence-modi-130089">'Laziness, incompetence' of </a><a href="http://www.wionews.com/india-news/laziness-incompetence-hidden-motives-of-previous-govt-hurt-indias-defence-modi-130089">previous</a><a href="http://www.wionews.com/india-news/laziness-incompetence-hidden-motives-of-previous-govt-hurt-indias-defence-modi-130089"> govt hurt India's defence: Modi</a>

Prime Minister Narendra Modi today hit out at the previous UPA government for "policy paralysis" in the defence sector and told foreign companies that it will not take a decade to take a decision on procurement of a batch of 110 fighter jets.

<a href="http://www.wionews.com/south-asia/pakistan-could-face-us-aid-cuts-over-human-trafficking-sources-130086">Pakistan could face US aid cuts over human trafficking: Sources</a>

The Trump administration is warning Pakistan it could lose US civilian aid worth tens of millions of dollars this year if Washington finds that the South Asian nation has not done enough to combat human trafficking, US officials said.

<a href="http://www.wionews.com/world/macron-says-has-proof-assad-regime-behind-syria-chemical-attack-130110">Macron says has 'proof' Assad regime behind Syria chemical attack</a>

Speaking to a television interview France President Emmanuel Macron has admitted to having proof about the Syrian government using chemical weapons on its civilians.&nbsp;

&nbsp;

Inflation falls for third straight month, is at 4.28% in March Retail inflation slowed to 4.28 per cent in March, the third consecutive month of decline, mainly on account of easing food prices including vegetables, government data showed today. Indian star shuttler Kidambi Srikanth is new World No. 1 Kidambi Srikanth reached the top of men's singles rankings with 76895 points in the Badminton World Federation (BWF) chart which was released today. He became the first Indian shuttler to achieve the number one rank in the modern ranking system. Though legendary Indian shuttler Prakash Padukone had reached the number one spot in 1980 but at that time computerized ranking system was not implemented. 'Laziness, incompetence' of previous govt hurt India's defence: Modi Prime Minister Narendra Modi today hit out at the previous UPA government for "policy paralysis" in the defence sector and told foreign companies that it will not take a decade to take a decision on procurement of a batch of 110 fighter jets. Pakistan could face US aid cuts over human trafficking: Sources The Trump administration is warning Pakistan it could lose US civilian aid worth tens of millions of dollars this year if Washington finds that the South Asian nation has not done enough to combat human trafficking, US officials said. Macron says has 'proof' Assad regime behind Syria chemical attack Speaking to a television interview France President Emmanuel Macron has admitted to having proof about the Syrian government using chemical weapons on its civilians.

News brief: Big stories of the day

Manila-based <a href="http://www.wionews.com/business-economy/indias-growth-set-to-be-higher-than-china-in-2018-asian-development-bank-26598">Asian Development Bank(ADB)</a> today projected India's economic growth to pick up to 7.3 per cent this fiscal.

The Bank forecasted India to grow at &nbsp7.6 per cent in 2019-20.&nbsp

Reserve Bank of India had projected the country to grow at 7.4 per cent in 2017 fiscal. The Indian economy grew 6.6 per cent in the last fiscal.

ADB said the growth will pick up as the new tax regime improves productivity and as banking reform and corporate deleveraging take hold to reverse a downtrend in investment.

"In sum, growth is forecast to pick up to 7.3 per cent in FY2018 on improved rural consumption, a modest uptick in private investment, and less drag from net exports. Urban consumption growth will remain stable, and impetus from public investment modest," ADB said.

In December, the ADB had made a similar prediction asserting that South Asia will remain the fastest growing region in Asia Pacific with India projected to grow at 7.3 per cent.

"Also set to catalyse growth are benefits from the GST as it mitigates geographic fragmentation and adds revenue to the exchequer, as well as further progress on fiscal consolidation and reform to promote FDI," the Bank added.

ADB had said India's growth would be at a lower rate of 6.7 per cent in 2017 from the previous estimate of 7.0 per cent, however, as far as China was concerned the bank had said it would grow at 6.8 per cent &nbspbut in 2018 the country could see a dip with the economy growing at 6.4 per cent. 
&nbsp

ADB said the growth will pick up as the new tax regime improves productivity and as banking reform and corporate deleveraging take hold to reverse a downtrend in investment.

Manila-based Asian Development Bank(ADB) today projected India's economic growth to pick up to 7.3 per cent this fiscal. The Bank forecasted India to grow at &nbsp7.6 per cent in 2019-20. Reserve Bank of India had projected the country to grow at 7.4 per cent in 2017 fiscal. The Indian economy grew 6.6 per cent in the last fiscal. ADB said the growth will pick up as the new tax regime improves productivity and as banking reform and corporate deleveraging take hold to reverse a downtrend in investment. "In sum, growth is forecast to pick up to 7.3 per cent in FY2018 on improved rural consumption, a modest uptick in private investment, and less drag from net exports. Urban consumption growth will remain stable, and impetus from public investment modest," ADB said. In December, the ADB had made a similar prediction asserting that South Asia will remain the fastest growing region in Asia Pacific with India projected to grow at 7.3 per cent. "Also set to catalyse growth are benefits from the GST as it mitigates geographic fragmentation and adds revenue to the exchequer, as well as further progress on fiscal consolidation and reform to promote FDI," the Bank added. ADB had said India's growth would be at a lower rate of 6.7 per cent in 2017 from the previous estimate of 7.0 per cent, however, as far as China was concerned the bank had said it would grow at 6.8 per cent &nbspbut in 2018 the country could see a dip with the economy growing at 6.4 per cent.

Indian economy to grow at 7.3 per cent this fiscal, 7.6 per cent in 2019-20: Asian Development Bank

The Reserve Bank of India kept its policy rates on hold for the fourth straight meeting on Thursday and retained its "neutral" stance even as inflationary pressures have eased more than expected.

The RBI kept its policy repo rate unchanged at 6.00 percent, its lowest since November 2010, as unanimously expected by 61 respondents in a Reuters poll.

The reverse repo rate also remained unchanged at 5.75 percent. 
Five of six members on the monetary policy committee voted for a hold, while one wanted a hike in the repo rate.

Inflation concerns have eased substantially following a crash in vegetable prices which is expected to keep price pressures soft for the next few months.

However, oil prices remain a risk, with India importing about 80 percent of its crude requirement.

Bonds rose after the RBI`s statement, while the rupee firmed and stocks extended early gains.

The 10-year benchmark bond yield fell to 7.19 percent from 7.28 percent before the announcement, while the rupee was trading at 64.95 to the dollar from 65.04 before. The main market index was up 1.8 percent.

INFLATION EASING, GROWTH

The RBI projected economic growth of 7.4 percent for the current fiscal year that began on April 1.

It also lowered its April-September inflation projection to 4.7-5.1 percent from February`s 5.1-5.6 percent.

After hitting a 17-month high in December, retail inflation eased for the second straight month in February and by more than expected, to a four-month low of 4.44 percent. But it was still higher than the central bank's medium-term target of 4 percent.

That has prompted most market watchers to push back their forecasts for a rate hike to early 2019, from earlier estimates of the second half of this year.

While inflation fears have eased in the short-term, the RBI sounded cautious and opted to wait for more data instead of giving a clear indication of its policy path.

"The MPC reiterates its commitment to achieving the medium-term target for headline inflation of 4 percent on a durable basis," the RBI said in a statement.

The RBI is also mindful of the pace of India`s economic recovery, after a loan-fraud scandal worth over $2 billion at the country`s second-largest state lender Punjab National Bank.

Greater regulatory scrutiny in the wake of the scandal could make banks more wary of lending, slowing down business activity after India`s economy grew 7.2 percent in the October-December, its fastest in five quarters.&nbsp;

RBI has kept the repo rate unchanged at 6% in the first monetary policy review of the current fiscal year, amid a gradual recovery in growth and easing inflation

The Reserve Bank of India kept its policy rates on hold for the fourth straight meeting on Thursday and retained its "neutral" stance even as inflationary pressures have eased more than expected. The RBI kept its policy repo rate unchanged at 6.00 percent, its lowest since November 2010, as unanimously expected by 61 respondents in a Reuters poll. The reverse repo rate also remained unchanged at 5.75 percent. Five of six members on the monetary policy committee voted for a hold, while one wanted a hike in the repo rate. Inflation concerns have eased substantially following a crash in vegetable prices which is expected to keep price pressures soft for the next few months. However, oil prices remain a risk, with India importing about 80 percent of its crude requirement. Bonds rose after the RBI`s statement, while the rupee firmed and stocks extended early gains. The 10-year benchmark bond yield fell to 7.19 percent from 7.28 percent before the announcement, while the rupee was trading at 64.95 to the dollar from 65.04 before. The main market index was up 1.8 percent. INFLATION EASING, GROWTH The RBI projected economic growth of 7.4 percent for the current fiscal year that began on April 1. It also lowered its April-September inflation projection to 4.7-5.1 percent from February`s 5.1-5.6 percent. After hitting a 17-month high in December, retail inflation eased for the second straight month in February and by more than expected, to a four-month low of 4.44 percent. But it was still higher than the central bank's medium-term target of 4 percent. That has prompted most market watchers to push back their forecasts for a rate hike to early 2019, from earlier estimates of the second half of this year. While inflation fears have eased in the short-term, the RBI sounded cautious and opted to wait for more data instead of giving a clear indication of its policy path. "The MPC reiterates its commitment to achieving the medium-term target for headline inflation of 4 percent on a durable basis," the RBI said in a statement. The RBI is also mindful of the pace of India`s economic recovery, after a loan-fraud scandal worth over $2 billion at the country`s second-largest state lender Punjab National Bank. Greater regulatory scrutiny in the wake of the scandal could make banks more wary of lending, slowing down business activity after India`s economy grew 7.2 percent in the October-December, its fastest in five quarters.

RBI keeps repo rate unchanged at 6% in first bi-monthly monetary policy for 2018-19

The Reserve Bank of India (RBI) is likely to keep interest rates on hold on Thursday for the fourth meeting in a row but maintain a cautious tone despite a sharper-than-expected pullback in inflation in the last few months.

The Monetary Policy Committee (MPC) is likely to stick with its 'neutral' stance and flag uncertainty over the inflation outlook beyond June due to factors such as oil prices and the government's promise of increasing the minimum purchase price of foodgrains from farmers.

A Reuters poll showed all 61 respondents expected the RBI to keep the repo rate steady at 6 percent, its lowest level since November 2010. A majority of the economists polled expect the RBI to only start raising rates in early 2019.

"We expect the policy guidance and tone to be balanced and similar to that in February," said A. Prasanna, chief economist at ICICI Securities Primary Dealership, referring to the RBI's projection that inflation will moderate from October onward but with upside risks.

"Accordingly, the MPC will again vote for status quo with a preference to wait for more clarity on key risks."

Inflation unexpectedly fell after vegetable prices fell in early 2018 due to a surge in harvests. This is expected to keep price pressures soft for the next few months.

However, oil prices remain a risk, since India imports nearly 80 percent of its crude oil requirement.

It is noteworthy that February's consumer price index (CPI) inflation fell to a four-month low of 4.44 percent, and is also expected to stay behind the RBI's projection of 5.1-5.6 percent for April-September, the RBI is unlikely to lower its guard as it aims to lower inflation to 4 percent in the medium term.

The RBI will also be mindful of the pace of India's economic recovery as banks are likely to go slow on lending after a loan-fraud scandal worth over $2 billion at the country's second largest state lender Punjab National Bank.

That could slow down activity after India grew the fastest in five quarters at 7.2 percent.

"There can be some dent in the risk appetite among banks to give loans after the issues related to loan fraud were detected, which could add uncertainties to the pace of the near term recovery," said Siddhartha Sanyal, chief India economist at Barclays in Mumbai.

"We expect that policymakers will be careful of not stifling growth at the early stages of recovery," adding that he expected the RBI to be on hold for all of 2018.

RBI is likely to keep interest rates on hold on Thursday for the fourth meeting in a row but maintain a cautious tone despite a pullback in inflation.

The Reserve Bank of India (RBI) is likely to keep interest rates on hold on Thursday for the fourth meeting in a row but maintain a cautious tone despite a sharper-than-expected pullback in inflation in the last few months. The Monetary Policy Committee (MPC) is likely to stick with its 'neutral' stance and flag uncertainty over the inflation outlook beyond June due to factors such as oil prices and the government's promise of increasing the minimum purchase price of foodgrains from farmers. A Reuters poll showed all 61 respondents expected the RBI to keep the repo rate steady at 6 percent, its lowest level since November 2010. A majority of the economists polled expect the RBI to only start raising rates in early 2019. "We expect the policy guidance and tone to be balanced and similar to that in February," said A. Prasanna, chief economist at ICICI Securities Primary Dealership, referring to the RBI's projection that inflation will moderate from October onward but with upside risks. "Accordingly, the MPC will again vote for status quo with a preference to wait for more clarity on key risks." Inflation unexpectedly fell after vegetable prices fell in early 2018 due to a surge in harvests. This is expected to keep price pressures soft for the next few months. However, oil prices remain a risk, since India imports nearly 80 percent of its crude oil requirement. It is noteworthy that February's consumer price index (CPI) inflation fell to a four-month low of 4.44 percent, and is also expected to stay behind the RBI's projection of 5.1-5.6 percent for April-September, the RBI is unlikely to lower its guard as it aims to lower inflation to 4 percent in the medium term. The RBI will also be mindful of the pace of India's economic recovery as banks are likely to go slow on lending after a loan-fraud scandal worth over $2 billion at the country's second largest state lender Punjab National Bank. That could slow down activity after India grew the fastest in five quarters at 7.2 percent. "There can be some dent in the risk appetite among banks to give loans after the issues related to loan fraud were detected, which could add uncertainties to the pace of the near term recovery," said Siddhartha Sanyal, chief India economist at Barclays in Mumbai. "We expect that policymakers will be careful of not stifling growth at the early stages of recovery," adding that he expected the RBI to be on hold for all of 2018.

RBI to keep rates on hold, sounds cautious despite easing inflation

The annual retail inflation eased for the second straight month in February to 4.44 percent, as food prices fell, government data showed on Monday.&nbsp;

The retail inflation in January was 5.07 per cent.

Retail inflation, measured by Consumer Price Index (CPI) stayed above 5 percent in January and December, mainly due to hardening housing, fuel and food prices, while inching towards RBI&rsquo;s upper tolerance level of inflation at 6 percent.

In February 2017, however, it was 3.65 per cent.

It was 4.88 per cent in November last year.

Data released by the Central Statistics Office (CSO) showed that the rate of price rise in the consumer food segment was lower at 3.26 per cent in February, as against 4.7 per cent in the previous month.

Inflation in vegetables was 17.57 per cent last month, down from 26.97 per cent in January), and for fruits, it was 4.80 per cent (as against 6.24 per cent).

Milk and its products too were less expensive with inflation print of 4.21 per cent, cereals and products at 2.10 per cent, meat &amp; fish at 3.31 per cent while for eggs the prices grew at a slower pace of 8.51 per cent.

Inflation for the fuel and light category was at 6.80 per cent in February (against 7.73 per cent in January). However, the rate of price increase was higher for transport and communication services at 2.39 per cent (1.97 per cent January).&nbsp;

(With inputs from Agencies)

The annual retail inflation eased for the second straight month in February to 4.44 percent, as food prices fell, government data showed on Monday. The retail inflation in January was 5.07 per cent. Retail inflation, measured by Consumer Price Index (CPI) stayed above 5 percent in January and December, mainly due to hardening housing, fuel and food prices, while inching towards RBI’s upper tolerance level of inflation at 6 percent. In February 2017, however, it was 3.65 per cent. It was 4.88 per cent in November last year. Data released by the Central Statistics Office (CSO) showed that the rate of price rise in the consumer food segment was lower at 3.26 per cent in February, as against 4.7 per cent in the previous month. Inflation in vegetables was 17.57 per cent last month, down from 26.97 per cent in January), and for fruits, it was 4.80 per cent (as against 6.24 per cent). Milk and its products too were less expensive with inflation print of 4.21 per cent, cereals and products at 2.10 per cent, meat & fish at 3.31 per cent while for eggs the prices grew at a slower pace of 8.51 per cent. Inflation for the fuel and light category was at 6.80 per cent in February (against 7.73 per cent in January). However, the rate of price increase was higher for transport and communication services at 2.39 per cent (1.97 per cent January). (With inputs from Agencies)

Retail inflation falls to 4.4% in February on cheaper food and fuel

After announcing 8.1 per cent hike in its defence expenditure for 2018, China on Monday set its Gross Domestic Product (GDP) growth rate for 2018 at around 6.5 per cent.

The target which is same as of last year was announced by Premier Li Keqiang in his annual work report as the country started its parliament session.

The world&#39;s second-largest economy aimed to reduce risks to its financial system from a rapid build-up in debt.

After the ceremonial opening attended by President Xi Jinping and around 3,000 delegates, Premier Li outlined the government&#39;s achievements last year and targets set for this year.&nbsp;

Given China&#39;s economic fundamentals and capacity for job creation, the GDP growth of around 6.5 per cent will enable China to achieve relatively full employment, Li said in his report.

The report also said China would clamp down on the kind of financially risky operations which have threatened to cause the collapse of major companies.

It follows last month&#39;s steps by the government to take control of insurance and financial giant Anbang.

China aims to maintain inflation level at around three per cent and create over 11 million new urban jobs.&nbsp;

China also announced to lower import tariffs on products including automobiles and some everyday consumer goods to encourage imports.&nbsp;

&quot;We will open our market wider to promote industry upgrading and more balanced development of trade, and to provide Chinese consumers with a broader range of choices,&quot; he said.

The central and western regions will continue to be the priority for major infrastructure construction, he added. 
&nbsp;

After announcing 8.1 per cent hike in its defence expenditure for 2018, China on Monday set its Gross Domestic Product (GDP) growth rate for 2018 at around 6.5 per cent. The target which is same as of last year was announced by Premier Li Keqiang in his annual work report as the country started its parliament session. The world's second-largest economy aimed to reduce risks to its financial system from a rapid build-up in debt. After the ceremonial opening attended by President Xi Jinping and around 3,000 delegates, Premier Li outlined the government's achievements last year and targets set for this year. Given China's economic fundamentals and capacity for job creation, the GDP growth of around 6.5 per cent will enable China to achieve relatively full employment, Li said in his report. The report also said China would clamp down on the kind of financially risky operations which have threatened to cause the collapse of major companies. It follows last month's steps by the government to take control of insurance and financial giant Anbang. China aims to maintain inflation level at around three per cent and create over 11 million new urban jobs. China also announced to lower import tariffs on products including automobiles and some everyday consumer goods to encourage imports. "We will open our market wider to promote industry upgrading and more balanced development of trade, and to provide Chinese consumers with a broader range of choices," he said. The central and western regions will continue to be the priority for major infrastructure construction, he added.

China sets 2018 GDP growth target at 6.5 per cent

India&#39;s annual wholesale price inflation eased in January for the second straight month after touching an eight-month high in November, helped by a softer rise in food and fuel prices, government data showed on Thursday.

Annual wholesale price inflation last month slowed to 2.84 percent from a year earlier, from a provisional 3.58 percent rise in December.

Wholesale food prices in January rose 1.65 percent year-on-year, compared with a 2.91 percent rise a month earlier, the data showed.

Wholesale food prices in January rose 1.65 percent year-on-year, compared with a 2.91 percent rise a month earlier, the data showed.

India's annual wholesale price inflation eased in January for the second straight month after touching an eight-month high in November, helped by a softer rise in food and fuel prices, government data showed on Thursday. Annual wholesale price inflation last month slowed to 2.84 percent from a year earlier, from a provisional 3.58 percent rise in December. Wholesale food prices in January rose 1.65 percent year-on-year, compared with a 2.91 percent rise a month earlier, the data showed.

Inflation falls in January on softer food, fuel prices

Inflation based on wholesale prices eased to 3.58 per cent in December 2017 as prices of food articles declined even as fuel cost witnessed a surge.&nbsp;

Calculated on the basis of Wholesale Price Index (WPI), the inflation was 3.93 per cent in November 2017 and 2.10 per cent in December 2016.&nbsp;

As per government data released today, inflation on food articles slowed to 4.72 per cent in December, from 6.06 per cent in November 2017.&nbsp;

Vegetables too witnessed some softening with annual inflation at 56.46 per cent in December as against 59.80 per cent in the previous month. Kitchen staple onion witnessed a whopping 197.05 per cent price rise in December.&nbsp;

Inflation in protein-rich eggs, meat and fish cooled to 1.67 per cent in December, while that in fruits spiked to 11.99 per cent.&nbsp;

In the fuel and power segment, wholesale inflation rose to 9.16 per cent in December, while it was 2.61 per cent for manufactured items.&nbsp;

Data released last week showed that retail inflation breached the RBI&#39;s comfort level to touch 5.21 per cent in December on rise in prices of food items, especially vegetables.&nbsp;

The Reserve Bank takes into account retail inflation while deciding on key policy rates.&nbsp;

In its last policy review in December, the RBI had kept key interest rate unchanged. It raised inflation forecast for the remainder of the current financial year to 4.3-4.7 per cent, on account of global crude oil prices and implementation of the 7th Pay Commission recommendations.&nbsp;

Meanwhile, inflation for October has been revised upwards to 3.68 per cent from the provisional estimate of 3.59 per cent released earlier.&nbsp;

Inflation in protein rich eggs, meat and fish cooled to 1.67 per cent in December, while that in fruits spiked to 11.99 per cent

Inflation based on wholesale prices eased to 3.58 per cent in December 2017 as prices of food articles declined even as fuel cost witnessed a surge. Calculated on the basis of Wholesale Price Index (WPI), the inflation was 3.93 per cent in November 2017 and 2.10 per cent in December 2016. As per government data released today, inflation on food articles slowed to 4.72 per cent in December, from 6.06 per cent in November 2017. Vegetables too witnessed some softening with annual inflation at 56.46 per cent in December as against 59.80 per cent in the previous month. Kitchen staple onion witnessed a whopping 197.05 per cent price rise in December. Inflation in protein-rich eggs, meat and fish cooled to 1.67 per cent in December, while that in fruits spiked to 11.99 per cent. In the fuel and power segment, wholesale inflation rose to 9.16 per cent in December, while it was 2.61 per cent for manufactured items. Data released last week showed that retail inflation breached the RBI's comfort level to touch 5.21 per cent in December on rise in prices of food items, especially vegetables. The Reserve Bank takes into account retail inflation while deciding on key policy rates. In its last policy review in December, the RBI had kept key interest rate unchanged. It raised inflation forecast for the remainder of the current financial year to 4.3-4.7 per cent, on account of global crude oil prices and implementation of the 7th Pay Commission recommendations. Meanwhile, inflation for October has been revised upwards to 3.68 per cent from the provisional estimate of 3.59 per cent released earlier.

WPI inflation eases to 3.58% in December as veggies price decline

The annual retail inflation accelerated in December to a 17-month high of 5.21 per cent, government data showed on Friday, mainly driven by faster rises in prices of food and fuel products.

Analysts polled by Reuters had forecast December&#39;s CPI inflation to rise to 5.10 per cent from November&#39;s 4.88 per cent.

In December, the Reserve Bank of India held its policy rate and reiterated a neutral stance but said that &quot;all possibilities are on the table&quot; depending on how price pressures and growth pan out.

For the six months through March, the RBI slightly raised its inflation projection - already above its 4 percent medium-term target - to 4.3-4.7 per cent.

Factors that indicate higher December inflation are increased prices for some foods and the impact of higher pay for government employees.

The annual retail inflation accelerated in December to a 17-month high of 5.21 per cent, government data showed on Friday, mainly driven by faster rises in prices of food and fuel products. Analysts polled by Reuters had forecast December's CPI inflation to rise to 5.10 per cent from November's 4.88 per cent. In December, the Reserve Bank of India held its policy rate and reiterated a neutral stance but said that "all possibilities are on the table" depending on how price pressures and growth pan out. For the six months through March, the RBI slightly raised its inflation projection - already above its 4 percent medium-term target - to 4.3-4.7 per cent.

December retail inflation hits 17-month high of 5.21 per cent

India&#39;s wholesale price based inflation rose&nbsp;to 3.93 per cent in&nbsp;November, as against 3.59 per cent in October.

&nbsp;The annual wholesale price inflation accelerated in November to an eight-month high, driven by faster rises in prices of food and fuel products, government data showed.&nbsp;

Inflation, based on the Wholesale Price Index (WPI), had risen to a six-month high in October due to increase in prices of food, onions and vegetables.

The government data had shown&nbsp;inflation in food articles more than doubled to 4.30 per cent in October.

In April, India&#39;s inflation stood at 3.85 per cent.

Last month, the Reserve Bank of India(RBI) had kept benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7 per cent for the current fiscal.

RBI also raised its inflation forecast to the 4.2-4.6 per cent range for the rest of the current fiscal as against 4-4.5 per cent previously.&nbsp; 
&nbsp;

The government data had shown?inflation in food articles more than doubled to 4.30 per cent in October.

India's wholesale price based inflation rose to 3.93 per cent in November, as against 3.59 per cent in October. The annual wholesale price inflation accelerated in November to an eight-month high, driven by faster rises in prices of food and fuel products, government data showed. Inflation, based on the Wholesale Price Index (WPI), had risen to a six-month high in October due to increase in prices of food, onions and vegetables. The government data had shown inflation in food articles more than doubled to 4.30 per cent in October. In April, India's inflation stood at 3.85 per cent. Last month, the Reserve Bank of India(RBI) had kept benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7 per cent for the current fiscal. RBI also raised its inflation forecast to the 4.2-4.6 per cent range for the rest of the current fiscal as against 4-4.5 per cent previously.

India's wholesale inflation rises to eight-month high in November

The stock market set the clock back today as the Sensex tumbled 228 points -- in a break with three sessions of gains -- after investor worry heightened over rising global oil prices ahead of inflation numbers.

Participants were at a crossroads as they had a clutch of macro pointers such as industrial production (IIP) and inflation in their sights, slated for release after market hours. Other Asian shares turned weak.

The Sensex closed at 33,227.99, down 227.80 points, or 0.68 per cent. The gauge had rallied 858.61 points in the previous three sessions.

The broader Nifty settled below the key 10,300-level, down 82.10 points, or 0.80 per cent, at 10,240.15.

&quot;With few cues to push ahead, the caution ahead of key macroeconomic release weighed on prices. Asian peers also offered little support with dollar&#39;s firmness ahead of key major central banks&#39; meetings. With pre-Budget talks under way, markets are also weighing the likelihood of the government levying taxes on long-term capital gains,&quot; said Anand James, Chief Market Strategist, Geojit Financial Services.

Realty, power and banking were in the grip of selling.

Global Brent crude oil prices jumped above the USD 65 a barrel for the first time since 2015, which could spoil any chance of rate reduction by the Reserve Bank, traders said.

Losses in oil marketers such as HPCL, BPCL and IOC stocks too weighed.

The Federal Reserve, which is scheduled to issue an interest rate policy update on Wednesday, kicks off its meeting. It is expected to lift rates by 0.25 per cent.

Back home, in the Sensex pack, Coal India tanked the most, losing 2.45 per cent, followed by Cipla, down 2.17 per cent, after participants took profit off the table.

Other major losers were Hero MotoCorp, TCS, Tata Steel, ITC and L&amp;T.

Dr Reddy&#39;s took a different trajectory, advancing the most by 2.83 per cent after the company said it has received Establishment Inspection Report (EIR) from the USFDA for its Hyderabad facility.

Adani Ports, ONGC, Lupin, Infosys, SBI and Maruti Suzuki too rose.

On the sectoral front, telecom fell by the widest margin of 2.12 per cent. Realty, power and FMCG lost too.

A weak trend also extended to the broader markets, with BSE mid-cap and small-cap indices retreating up to 1.01 per cent.

Foreign portfolio investors (FPIs) turned net sellers, diluting shares net Rs 185.60 crore yesterday while domestic institutional investors (DIIs) bought equities to the tune of Rs 108.94 crore, as per provisional data. PTI

The broader Nifty settled below the key 10,300 level, down 82.10 points, or 0.80%, at 10,240.15

The stock market set the clock back today as the Sensex tumbled 228 points -- in a break with three sessions of gains -- after investor worry heightened over rising global oil prices ahead of inflation numbers. Participants were at a crossroads as they had a clutch of macro pointers such as industrial production (IIP) and inflation in their sights, slated for release after market hours. Other Asian shares turned weak. The Sensex closed at 33,227.99, down 227.80 points, or 0.68 per cent. The gauge had rallied 858.61 points in the previous three sessions. The broader Nifty settled below the key 10,300-level, down 82.10 points, or 0.80 per cent, at 10,240.15. "With few cues to push ahead, the caution ahead of key macroeconomic release weighed on prices. Asian peers also offered little support with dollar's firmness ahead of key major central banks' meetings. With pre-Budget talks under way, markets are also weighing the likelihood of the government levying taxes on long-term capital gains," said Anand James, Chief Market Strategist, Geojit Financial Services. Realty, power and banking were in the grip of selling. Global Brent crude oil prices jumped above the USD 65 a barrel for the first time since 2015, which could spoil any chance of rate reduction by the Reserve Bank, traders said. Losses in oil marketers such as HPCL, BPCL and IOC stocks too weighed. The Federal Reserve, which is scheduled to issue an interest rate policy update on Wednesday, kicks off its meeting. It is expected to lift rates by 0.25 per cent. Back home, in the Sensex pack, Coal India tanked the most, losing 2.45 per cent, followed by Cipla, down 2.17 per cent, after participants took profit off the table. Other major losers were Hero MotoCorp, TCS, Tata Steel, ITC and L&T. Dr Reddy's took a different trajectory, advancing the most by 2.83 per cent after the company said it has received Establishment Inspection Report (EIR) from the USFDA for its Hyderabad facility. Adani Ports, ONGC, Lupin, Infosys, SBI and Maruti Suzuki too rose. On the sectoral front, telecom fell by the widest margin of 2.12 per cent. Realty, power and FMCG lost too. A weak trend also extended to the broader markets, with BSE mid-cap and small-cap indices retreating up to 1.01 per cent. Foreign portfolio investors (FPIs) turned net sellers, diluting shares net Rs 185.60 crore yesterday while domestic institutional investors (DIIs) bought equities to the tune of Rs 108.94 crore, as per provisional data. PTI

Caution on inflation puts stocks to test, Sensex slides 228 points

<a href="http://www.wionews.com/business-economy/consumer-inflation-soars-to-488-while-industrial-output-growth-slows-to-22-26549" target="_blank">Retail inflation hits 15-month high of 4.88% in November</a>

Fuelled by soaring food prices, retail inflation climbed to a 15-month high of 4.88% in November. It was at 3.58 % in October.

Industrial output growth meanwhile slowed to 2.2% in October from 3.8% in September, with demand continuing to suffer from the disruption caused by the rollout of the new Goods and Services Tax (GST). &nbsp;

<a href="http://www.wionews.com/india-news/government-to-set-special-courts-for-speedy-trial-of-mps-mlas-pending-cases-26535">Centre to SC: Will set up 12 special courts to decide criminal cases pending against MPs, MLAs</a>

The Centre has told the Supreme Court, in an affidavit filed by the law minister, that it will set up 12 special courts to decide criminal cases pending against MPs and MLA.&nbsp;

<a href="http://www.wionews.com/india-news/tami-nadu-honour-killing-six-of-the-convicts-get-death-sentence-including-father-in-law-26538">Tamil Nadu </a><a href="http://www.wionews.com/india-news/tami-nadu-honour-killing-six-of-the-convicts-get-death-sentence-including-father-in-law-26538">honour</a><a href="http://www.wionews.com/india-news/tami-nadu-honour-killing-six-of-the-convicts-get-death-sentence-including-father-in-law-26538"> killing: 6 sentenced to death including father-in-law</a>

A Tirupur court in Tamil Nadu convicted 11 people on Tuesday for the murder of Dalit youth V Shankar, six of the convicts were given death sentences.

One was sentenced to life imprisonment.

The convicts who were given death sentences included Shankar&#39;s father-in-law.&nbsp;

<a href="http://www.wionews.com/india-news/bjp-demands-mlas-to-step-down-for-organising-kissing-competition-26537">Jharkhand kissing competition: Organising MLAs asked to step down</a>

The BJP has come down hard on the Jharkhand Mukti Morcha leaders involved in organising the event, demanding an apology and their immediate suspension from the state assembly.

<a href="http://www.wionews.com/business-economy/indias-economy-to-grow-at-72-in-2018-un-26543">India&#39;s economy to grow at 7.2% in 2018: UN</a>

India&#39;s economy is projected to grow at 7.2 per cent in 2018 and 7.4 per cent in 2019, despite a slowdown observed this year and the lingering effects from the demonetisation, the UN has said.

Retail inflation hits 15-month high of 4.88% in November Fuelled by soaring food prices, retail inflation climbed to a 15-month high of 4.88% in November. It was at 3.58 % in October. Industrial output growth meanwhile slowed to 2.2% in October from 3.8% in September, with demand continuing to suffer from the disruption caused by the rollout of the new Goods and Services Tax (GST). Centre to SC: Will set up 12 special courts to decide criminal cases pending against MPs, MLAs The Centre has told the Supreme Court, in an affidavit filed by the law minister, that it will set up 12 special courts to decide criminal cases pending against MPs and MLA. Tamil Nadu honour killing: 6 sentenced to death including father-in-law A Tirupur court in Tamil Nadu convicted 11 people on Tuesday for the murder of Dalit youth V Shankar, six of the convicts were given death sentences. One was sentenced to life imprisonment. The convicts who were given death sentences included Shankar's father-in-law. Jharkhand kissing competition: Organising MLAs asked to step down The BJP has come down hard on the Jharkhand Mukti Morcha leaders involved in organising the event, demanding an apology and their immediate suspension from the state assembly. India's economy to grow at 7.2% in 2018: UN India's economy is projected to grow at 7.2 per cent in 2018 and 7.4 per cent in 2019, despite a slowdown observed this year and the lingering effects from the demonetisation, the UN has said.

WION Evening News Brief, December 12, 2017

The Reserve Bank of India(RBI) today kept the policy rate unchanged at six per cent, deciding to keep the rate &#39;neutral&#39;.

The RBI also kept the reverse repo rate unchanged at 5.75 per cent.

Experts had predicted the RBI would keep the rates unchanged due to high inflation and a strong economic growth which did not require monetary stimulus.

The rate is lowest since November 2010, reports said a five-member committee voted to keep it unchanged with one member voting against it.

The Sensex had slipped during the day ahead of the repo rate announcement as the market expected the Reserve Bank to keep rates at neutral.

The Finance ministry had announced recently India&#39;s growth in the second quarter had risen 6.3 percent in July-Sept period signaling an uptake in economic activity which was one of&nbsp;the reason for RBI to keep the policy rate at six per cent.

The RBI also kept the reverse repo rate unchanged at 5.75 per cent.

The Reserve Bank of India(RBI) today kept the policy rate unchanged at six per cent, deciding to keep the rate 'neutral'. The RBI also kept the reverse repo rate unchanged at 5.75 per cent. Experts had predicted the RBI would keep the rates unchanged due to high inflation and a strong economic growth which did not require monetary stimulus. The rate is lowest since November 2010, reports said a five-member committee voted to keep it unchanged with one member voting against it. The Sensex had slipped during the day ahead of the repo rate announcement as the market expected the Reserve Bank to keep rates at neutral. The Finance ministry had announced recently India's growth in the second quarter had risen 6.3 percent in July-Sept period signaling an uptake in economic activity which was one of the reason for RBI to keep the policy rate at six per cent.

RBI keeps repo rate unchanged at 6 per cent

The Reserve Bank of India (RBI) looks set to keep its policy rate on hold on Wednesday after inflation accelerated to a seven-month high and stronger economic growth reduced the need for monetary stimulus.

All but two of 54 analysts in a Reuters Poll said the repo rate would be left at 6.00 per cent, the lowest since November 2010.

In August, the RBI made its only cut in 2017, of 25 basis points, and in October, it held. On Wednesday, after a two-day meeting, the RBI is likely to reiterate concern about inflation, as the annual rate increased to 3.58 per cent in October. That&rsquo;s low by Indian standards, but not far from the central bank&rsquo;s 4 per cent target.

Another source of RBI discomfort is that core inflation, which excludes food and energy prices, has remained stubbornly high at around 4.5 per cent.

The central bank is likely to reiterate a &ldquo;neutral&rdquo; stance, thus giving itself the flexibility to cut rates in February, even though only seven of the 48 analysts in the Reuters poll who gave a view on 2018&rsquo;s first meeting expect that outcome.

Last week, there was welcome news of a recovery in annual economic growth in July-September to 6.3 per cent, from 5.7 per cent the previous quarter.

&ldquo;The recovery is a source of comfort to the RBI as it lowers pressure on them to take a growth-supportive stance,&rdquo; said Radhika Rao, an economist at DBS in Singapore.

But the latest pace is still well below the 8 per cent level India needs to create millions of jobs each year for youths.

Calls for a Cut

That has sparked renewed calls from some government officials for the RBI, which has cut the repo rate by 200 bps since January 2015, to trim again.

While analysts rule out a cut now, some say the central bank could soften its tone somewhat and sound more accommodative.&nbsp;

&ldquo;We don&rsquo;t expect the tone to be outright hawkish as the RBI might need to trim down its growth projections for FY18, which at current levels is optimistic,&rdquo; said Rao, who expects a hold on Wednesday and in February. &ldquo;But they would still sound cautious on inflation and positive on growth.&rdquo;

The RBI&rsquo;s course will likely be determined by inflation, which in October it projected would accelerate to 4.2 to 4.6 per cent in the six months to March, driven by multiple factors including planned pay hikes for government employees.

The central bank is also likely to be concerned that the government may have a wider fiscal deficit in the fiscal year ending in March than the 3.2 per cent target, raising the prospect New Delhi may have to sell more bonds.

Those fears, plus the prospect they would further reduce the scope to cut rates amid accelerating inflation, have sent benchmark 10-year bonds sharply lower since the RBI cut the repo rate on August 2, with the yield up more than 60 bps.

The uncertainty about India&rsquo;s fiscal management is being further exacerbated as the government is due to unveil its budget for the next fiscal year in early February, before the RBI&rsquo;s next meeting.

The government&rsquo;s prudent fiscal management helped the country earn a much-desired rating upgrade from Moody&rsquo;s Investors Service last month.

Still, some analysts are worried New Delhi could crank up spending next year as it seeks to boost its re-election chances in 2019.

On Wednesday, after a two-day meeting, the RBI is likely to reiterate concern about inflation, as the annual rate increased to 3.58 per cent in October

The Reserve Bank of India (RBI) looks set to keep its policy rate on hold on Wednesday after inflation accelerated to a seven-month high and stronger economic growth reduced the need for monetary stimulus. All but two of 54 analysts in a Reuters Poll said the repo rate would be left at 6.00 per cent, the lowest since November 2010. In August, the RBI made its only cut in 2017, of 25 basis points, and in October, it held. On Wednesday, after a two-day meeting, the RBI is likely to reiterate concern about inflation, as the annual rate increased to 3.58 per cent in October. That’s low by Indian standards, but not far from the central bank’s 4 per cent target. Another source of RBI discomfort is that core inflation, which excludes food and energy prices, has remained stubbornly high at around 4.5 per cent. The central bank is likely to reiterate a “neutral” stance, thus giving itself the flexibility to cut rates in February, even though only seven of the 48 analysts in the Reuters poll who gave a view on 2018’s first meeting expect that outcome. Last week, there was welcome news of a recovery in annual economic growth in July-September to 6.3 per cent, from 5.7 per cent the previous quarter. “The recovery is a source of comfort to the RBI as it lowers pressure on them to take a growth-supportive stance,” said Radhika Rao, an economist at DBS in Singapore. But the latest pace is still well below the 8 per cent level India needs to create millions of jobs each year for youths. Calls for a Cut That has sparked renewed calls from some government officials for the RBI, which has cut the repo rate by 200 bps since January 2015, to trim again. While analysts rule out a cut now, some say the central bank could soften its tone somewhat and sound more accommodative. “We don’t expect the tone to be outright hawkish as the RBI might need to trim down its growth projections for FY18, which at current levels is optimistic,” said Rao, who expects a hold on Wednesday and in February. “But they would still sound cautious on inflation and positive on growth.” The RBI’s course will likely be determined by inflation, which in October it projected would accelerate to 4.2 to 4.6 per cent in the six months to March, driven by multiple factors including planned pay hikes for government employees. The central bank is also likely to be concerned that the government may have a wider fiscal deficit in the fiscal year ending in March than the 3.2 per cent target, raising the prospect New Delhi may have to sell more bonds. Those fears, plus the prospect they would further reduce the scope to cut rates amid accelerating inflation, have sent benchmark 10-year bonds sharply lower since the RBI cut the repo rate on August 2, with the yield up more than 60 bps. The uncertainty about India’s fiscal management is being further exacerbated as the government is due to unveil its budget for the next fiscal year in early February, before the RBI’s next meeting. The government’s prudent fiscal management helped the country earn a much-desired rating upgrade from Moody’s Investors Service last month. Still, some analysts are worried New Delhi could crank up spending next year as it seeks to boost its re-election chances in 2019.

Preview: RBI, wary on inflation, set to keep rates on hold

The Reserve Bank is likely to keep the key rate unchanged on Wednesday and stay focused on inflation control as the rebound in September quarter GDP growth - after a five quarter decline - seemed to have eased pressure on it to lower rates, experts said.

India Inc, however, is demanding interest rate cut to further build on positive sentiment generated by the rebound and upgrade of the country&#39;s sovereign rating by Moody&#39;s.

The Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel, will meet on December 5 and 6 for the Fifth Bi-monthly Monetary Policy Statement for 2017-18. The resolution of the MPC will be made public on December 6.

In its October review, it had kept the benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7 per cent for the current fiscal.

The central bank had reduced the benchmark lending rate by 0.25 percentage points to 6 per cent in August, bringing it to a 6-year low.

Bankers and experts are of the view that the RBI for the second time in a row may key repo-rate or short-term lending rate unchanged as inflation trajectory is likely to remain upward in the coming months.

&quot;It&#39;s going to be a status quo. The liquidity in the system is very low, deposit rates are firming up and there are concerns about inflation,&quot; said Union Bank MD and CEO Rajkiran Rai G.

Global financial services major Nomura said while lower GST rates have moderated output prices, input cost pressures are marginally higher, which along with higher food inflation is likely to push retail inflation slightly above the RBI midpoint target of 4 per cent in November and beyond.

&quot;We expect a hawkish hold from the RBI..And policy rates to remain unchanged through 2018,&quot; it said in a report.

Wholesale prices-based inflation had shot up to a 6-month high of 3.59 per cent in October. The retail inflation (Consumer Price Index) for October rose to a 7-month high of 3.58 per cent.

Meanwhile, industry body Ficci said there has been positive news in the form of improvement in ease of doing business rankings, Moody?s upgrade of India&#39;s rating and the massive recapitalisation plan for banks.

&quot;This is a good opportunity to further build the confidence levels. The monetary policy announcement next week will be a perfect timing to give another shot to boost the sentiment,&quot; said Ficci President Pankaj Patel in a statement.

Reversing a five-quarter slide in GDP growth, Indian economy bounced back from a three-year low to expand by 6.3 per cent in the July-September period as manufacturing revved up and businesses adjusted to the new GST tax regime.

The GDP growth in the second quarter of 2017-18 compares to 5.7 per cent in April-June.

Credit rating firm ICRA has said RBI is likely to keep the key policy rate unchanged at 6 per cent as it expects retail inflation to firm up in the coming months.

It said the (MPC) would leave the repo rate unchanged at 6 per cent &quot;in a non-unanimous decision in the December 2017 policy review, given the expectation of a further rise in the CPI inflation in the coming months&quot;.

With gross value added (GVA) growth estimated by the Central Statistics Office at 5.8 per cent in first half of FY&#39;18, a downward bias is likely to be placed on the MPC&#39;s baseline forecast for growth of GVA at basic prices of 6.7 per cent for ongoing fiscal.&nbsp;

The Monetary Policy Committee headed by RBI Governor Urjit Patel will meet on December 5 and 6 for the Fifth Bi-monthly Monetary Policy Statement for 2017-18

The Reserve Bank is likely to keep the key rate unchanged on Wednesday and stay focused on inflation control as the rebound in September quarter GDP growth - after a five quarter decline - seemed to have eased pressure on it to lower rates, experts said. India Inc, however, is demanding interest rate cut to further build on positive sentiment generated by the rebound and upgrade of the country's sovereign rating by Moody's. The Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel, will meet on December 5 and 6 for the Fifth Bi-monthly Monetary Policy Statement for 2017-18. The resolution of the MPC will be made public on December 6. In its October review, it had kept the benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7 per cent for the current fiscal. The central bank had reduced the benchmark lending rate by 0.25 percentage points to 6 per cent in August, bringing it to a 6-year low. Bankers and experts are of the view that the RBI for the second time in a row may key repo-rate or short-term lending rate unchanged as inflation trajectory is likely to remain upward in the coming months. "It's going to be a status quo. The liquidity in the system is very low, deposit rates are firming up and there are concerns about inflation," said Union Bank MD and CEO Rajkiran Rai G. Global financial services major Nomura said while lower GST rates have moderated output prices, input cost pressures are marginally higher, which along with higher food inflation is likely to push retail inflation slightly above the RBI midpoint target of 4 per cent in November and beyond. "We expect a hawkish hold from the RBI..And policy rates to remain unchanged through 2018," it said in a report. Wholesale prices-based inflation had shot up to a 6-month high of 3.59 per cent in October. The retail inflation (Consumer Price Index) for October rose to a 7-month high of 3.58 per cent. Meanwhile, industry body Ficci said there has been positive news in the form of improvement in ease of doing business rankings, Moody?s upgrade of India's rating and the massive recapitalisation plan for banks. "This is a good opportunity to further build the confidence levels. The monetary policy announcement next week will be a perfect timing to give another shot to boost the sentiment," said Ficci President Pankaj Patel in a statement. Reversing a five-quarter slide in GDP growth, Indian economy bounced back from a three-year low to expand by 6.3 per cent in the July-September period as manufacturing revved up and businesses adjusted to the new GST tax regime. The GDP growth in the second quarter of 2017-18 compares to 5.7 per cent in April-June. Credit rating firm ICRA has said RBI is likely to keep the key policy rate unchanged at 6 per cent as it expects retail inflation to firm up in the coming months. It said the (MPC) would leave the repo rate unchanged at 6 per cent "in a non-unanimous decision in the December 2017 policy review, given the expectation of a further rise in the CPI inflation in the coming months". With gross value added (GVA) growth estimated by the Central Statistics Office at 5.8 per cent in first half of FY'18, a downward bias is likely to be placed on the MPC's baseline forecast for growth of GVA at basic prices of 6.7 per cent for ongoing fiscal.

RBI likely to keep interest rate on hold for second time in row

The Reserve Bank of India is likely to leave interest rates unchanged at its December policy meeting and through the end of next year, <a href="http://www.wionews.com/india-news/indias-october-retail-inflation-touches-seven-month-high-of-358-percent-24113">despite expectations that&nbsp;inflation</a> will breach its 4 percent target in the next few months, a Reuters poll showed.

The results, from a poll of economists taken over the past week, also found there is a bigger risk the next move is a cut, even though forecasts diverge in three directions starting from the second quarter of next year.

That suggests both that policymakers have little room for manoeuvre and the outlook for rates beyond the next few months is exceptionally fuzzy, with several respondents saying they were unwilling to look much beyond the turn of the year.

The poll comes at a possible turning point for Asia&#39;s third-largest economy, with a separate Reuters survey showing economists now expect a rebound in economic growth after five consecutive quarters of deceleration.

&quot;In the RBI&#39;s perception,&nbsp;inflation&nbsp;is inching up and the risks of that remaining high remain for a longer duration, say a couple of quarters or so, it may be difficult for the RBI to consider a rate cut around that scenario,&quot; said Shubhada Rao, chief economist at Yes Bank in Mumbai.

&quot;In our opinion, a December rate cut is ruled out. Maybe next year (but) a lot depends on how inflation&nbsp;plays out,&quot; said Rao, who was the most accurate forecaster on the Indian economy in Reuters Polls last year.

The latest survey found 52 of 54 economists expected the RBI to hold the repo rate at 6.0 percent on Dec. 6, with just two forecasting a 25-basis-point cut to 5.75 percent.

The RBI&#39;s Monetary Policy Committee at its meeting in October expressed concern about rising inflation, one of the reasons it decided to keep rates steady then.&nbsp;Inflation&nbsp;rose to 3.6 percent at last count, the highest in seven months.

In the poll, 20 of 26 economists who answered an additional question said&nbsp;inflation&nbsp;was likely to rise above the RBI&#39;s 4 percent medium-term target by March, with forecasts split nearly evenly between the current quarter and early 2018.

But not all economists were concerned about&nbsp;inflation, which is still low by historical standards.

Finance ministry officials told Reuters that India&#39;s government is lobbying for a rate cut.

&quot;We expect the RBI to cut policy rates, if not in December then in its next policy review,&quot; one ministry official told Reuters on condition of anonymity.

Prime Minister Narendra Modi&#39;s government has hit the economy with sweeping changes over the past year by removing more than 85 percent of the currency in circulation as well as implementing a new national goods and services tax.

But if the RBI were to cut rates, it would be out of step with the latest trend among major central banks, which are now looking to either tighten policy or move away from ultra-easy policy in place since the financial crisis a decade ago.

The US&nbsp;Federal Reserve has been raising rates for the last two years, the Bank of Canada has lifted them twice this year and even the Bank of England put up borrowing costs earlier this month, in part on&nbsp;inflation&nbsp;concerns.

The global economy is also fairly strong, with most economies growing simultaneously. Yet at its last policy review, the RBI cut its growth outlook for the current fiscal year to 6.7 percent from 7.3 percent, suggesting it is not close to considering raising rates.

The latest Reuters poll found economists overwhelmingly expected no changes to that domestic outlook at the December policy meeting, further evidence that the repo rate is likely to remain on hold at 6.0 percent then and for a while longer.

Sajjid Chinoy, chief India economist at JP Morgan, wrote in a recent note to clients that the significant rise in oil prices over recent months, which will pinch consumers through higherinflation, is a good reason for pause.

&quot;The resulting jump in&nbsp;inflation, which we now see rising to above 4.5 percent next quarter, is likely to keep the RBI cautious at its December review.&quot;

The Reserve Bank of India is likely to leave interest rates unchanged at its December policy meeting and through the end of next year, despite expectations that?inflation will breach its 4 percent target in the next few months, a Reuters poll showed

The Reserve Bank of India is likely to leave interest rates unchanged at its December policy meeting and through the end of next year, despite expectations that inflation will breach its 4 percent target in the next few months, a Reuters poll showed. The results, from a poll of economists taken over the past week, also found there is a bigger risk the next move is a cut, even though forecasts diverge in three directions starting from the second quarter of next year. That suggests both that policymakers have little room for manoeuvre and the outlook for rates beyond the next few months is exceptionally fuzzy, with several respondents saying they were unwilling to look much beyond the turn of the year. The poll comes at a possible turning point for Asia's third-largest economy, with a separate Reuters survey showing economists now expect a rebound in economic growth after five consecutive quarters of deceleration. "In the RBI's perception, inflation is inching up and the risks of that remaining high remain for a longer duration, say a couple of quarters or so, it may be difficult for the RBI to consider a rate cut around that scenario," said Shubhada Rao, chief economist at Yes Bank in Mumbai. "In our opinion, a December rate cut is ruled out. Maybe next year (but) a lot depends on how inflation plays out," said Rao, who was the most accurate forecaster on the Indian economy in Reuters Polls last year. The latest survey found 52 of 54 economists expected the RBI to hold the repo rate at 6.0 percent on Dec. 6, with just two forecasting a 25-basis-point cut to 5.75 percent. The RBI's Monetary Policy Committee at its meeting in October expressed concern about rising inflation, one of the reasons it decided to keep rates steady then. Inflation rose to 3.6 percent at last count, the highest in seven months. In the poll, 20 of 26 economists who answered an additional question said inflation was likely to rise above the RBI's 4 percent medium-term target by March, with forecasts split nearly evenly between the current quarter and early 2018. But not all economists were concerned about inflation, which is still low by historical standards. Finance ministry officials told Reuters that India's government is lobbying for a rate cut. "We expect the RBI to cut policy rates, if not in December then in its next policy review," one ministry official told Reuters on condition of anonymity. Prime Minister Narendra Modi's government has hit the economy with sweeping changes over the past year by removing more than 85 percent of the currency in circulation as well as implementing a new national goods and services tax. But if the RBI were to cut rates, it would be out of step with the latest trend among major central banks, which are now looking to either tighten policy or move away from ultra-easy policy in place since the financial crisis a decade ago. The US Federal Reserve has been raising rates for the last two years, the Bank of Canada has lifted them twice this year and even the Bank of England put up borrowing costs earlier this month, in part on inflation concerns. The global economy is also fairly strong, with most economies growing simultaneously. Yet at its last policy review, the RBI cut its growth outlook for the current fiscal year to 6.7 percent from 7.3 percent, suggesting it is not close to considering raising rates. The latest Reuters poll found economists overwhelmingly expected no changes to that domestic outlook at the December policy meeting, further evidence that the repo rate is likely to remain on hold at 6.0 percent then and for a while longer. Sajjid Chinoy, chief India economist at JP Morgan, wrote in a recent note to clients that the significant rise in oil prices over recent months, which will pinch consumers through higherinflation, is a good reason for pause. "The resulting jump in inflation, which we now see rising to above 4.5 percent next quarter, is likely to keep the RBI cautious at its December review."

India's inflation likely to rise, interest rates won't: Poll

Afghanistan&rsquo;s economy is expected to grow 2.6 per cent this year, up slightly from the previous year despite deteriorating security, the World Bank said in a report on Tuesday.

While the figure is up from 2.2 per cent last year, it does not keep up with the country&rsquo;s population growth of roughly 3 per cent, meaning that gross domestic product per capita continues to decline.

&ldquo;In the next three to four years, there are things that can be done to boost growth to between 4 and 5 per cent,&rdquo; said Shubham Chaudhuri, the World&rsquo;s Bank&rsquo;s Country Director for Afghanistan.

Chaudhuri, presenting a report on Afghanistan&rsquo;s economy at the World Bank&rsquo;s fortified headquarters in Kabul, said that agriculture, mineral attraction, and the country&rsquo;s youth were its biggest assets, as well as its geography as a regional land bridge.

The improved growth outlook will be welcomed by President Ashraf Ghani, whose technocrat government is seen as unstable but appears to be making the reforms that international donors - who provide more than half of Afghanistan&rsquo;s funding - have been seeking.

Parliamentary elections are due to be held next year, with a presidential vote expected in 2019.

Business sentiment is also on the rise, the World Bank said, though it is still lower than in 2014 when most foreign troops withdrew from Afghanistan.

Growth is significantly below the &ldquo;war economy&rdquo; figures of the late 2000s, which saw annual rises averaging nearly 10 per cent, but the World Bank believes it will continue to rise.

The organisation projects 3.2 per cent growth next year, though that assumes no deterioration in the country&rsquo;s security. This appears unlikely given a recent increase in attacks by various militant groups.

One of the major tests for Afghanistan&rsquo;s stability after a U.S.-led invasion ousted the Taliban government a decade and a half ago is its ability to collect taxes.

Tax revenue in the first eight months of the year was 13 per cent higher than the same period last year, the World Bank said.

The country has long been plagued by corruption and tax evasion.

Inflation remains in the single-digits, with consumer prices up 3.8 per cent in the 12 months to September.

While the figure is up from 2.2% last year, it does not keep up with the country?s population growth of roughly 3%, meaning that gross domestic product per capita continues to decline

Afghanistan’s economy is expected to grow 2.6 per cent this year, up slightly from the previous year despite deteriorating security, the World Bank said in a report on Tuesday. While the figure is up from 2.2 per cent last year, it does not keep up with the country’s population growth of roughly 3 per cent, meaning that gross domestic product per capita continues to decline. “In the next three to four years, there are things that can be done to boost growth to between 4 and 5 per cent,” said Shubham Chaudhuri, the World’s Bank’s Country Director for Afghanistan. Chaudhuri, presenting a report on Afghanistan’s economy at the World Bank’s fortified headquarters in Kabul, said that agriculture, mineral attraction, and the country’s youth were its biggest assets, as well as its geography as a regional land bridge. The improved growth outlook will be welcomed by President Ashraf Ghani, whose technocrat government is seen as unstable but appears to be making the reforms that international donors - who provide more than half of Afghanistan’s funding - have been seeking. Parliamentary elections are due to be held next year, with a presidential vote expected in 2019. Business sentiment is also on the rise, the World Bank said, though it is still lower than in 2014 when most foreign troops withdrew from Afghanistan. Growth is significantly below the “war economy” figures of the late 2000s, which saw annual rises averaging nearly 10 per cent, but the World Bank believes it will continue to rise. The organisation projects 3.2 per cent growth next year, though that assumes no deterioration in the country’s security. This appears unlikely given a recent increase in attacks by various militant groups. One of the major tests for Afghanistan’s stability after a U.S.-led invasion ousted the Taliban government a decade and a half ago is its ability to collect taxes. Tax revenue in the first eight months of the year was 13 per cent higher than the same period last year, the World Bank said. The country has long been plagued by corruption and tax evasion. Inflation remains in the single-digits, with consumer prices up 3.8 per cent in the 12 months to September.

Afghanistan's economy on slow rise, to grow 2.6% this year: World Bank

Inflation at the wholesale level rose to a 6-month high of 3.59 percent in October as the prices of food articles, led by onions and vegetables, rose sharply.

Inflation, based on the Wholesale Price Index (WPI), was 2.60 percent in September. In October last year, it was 1.27 percent.

Last month&#39;s inflation was the highest since April when it was 3.85 percent.

The government data released today showed that inflation in food articles more than doubled to 4.30 percent in October.

For vegetables, it soared to 36.61 percent last month as against 15.48 percent in September.

In case of onions, inflation skyrocketed to 127.04 percent, while for the eggs, meat and fish segment the rate of price rise was 5.76 percent.

Inflation in manufactured products saw a slight dip to 2.62 percent, as against 2.72 percent in September.

In the fuel and power segment, inflation rose to 10.52 percent, as against 9.01 percent in September. Fuel inflation has remained high for the past three months as petrol and diesel prices continued to rule high tracking global crude oil rates.

Power tariffs shot through the roof on lower domestic production.

Pulses continued to witness deflation at 31.05 percent. Likewise, in potato deflation was at 44.29 percent and wheat at 1.99 percent.

The final print of August WPI inflation remained unchanged at 3.24 percent.

As per the Consumer Price Index (CPI) data released yesterday, retail inflation for October rose to a 7-month high of 3.58 percent on costlier food items, especially vegetables.

Besides, industrial production for September expanded at 3.8 percent, on poor showing by the manufacturing sector coupled with a decline in consumer durables output.

Last month, the Reserve Bank kept benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7 percent for the current fiscal.

RBI also raised its inflation forecast to the 4.2-4.6 percent range for the rest of the current fiscal as against 4-4.5 percent previously.&nbsp;

The prices of food articles, led by onions and vegetables, rose sharply

Inflation at the wholesale level rose to a 6-month high of 3.59 percent in October as the prices of food articles, led by onions and vegetables, rose sharply. Inflation, based on the Wholesale Price Index (WPI), was 2.60 percent in September. In October last year, it was 1.27 percent. Last month's inflation was the highest since April when it was 3.85 percent. The government data released today showed that inflation in food articles more than doubled to 4.30 percent in October. For vegetables, it soared to 36.61 percent last month as against 15.48 percent in September. In case of onions, inflation skyrocketed to 127.04 percent, while for the eggs, meat and fish segment the rate of price rise was 5.76 percent. Inflation in manufactured products saw a slight dip to 2.62 percent, as against 2.72 percent in September. In the fuel and power segment, inflation rose to 10.52 percent, as against 9.01 percent in September. Fuel inflation has remained high for the past three months as petrol and diesel prices continued to rule high tracking global crude oil rates. Power tariffs shot through the roof on lower domestic production. Pulses continued to witness deflation at 31.05 percent. Likewise, in potato deflation was at 44.29 percent and wheat at 1.99 percent. The final print of August WPI inflation remained unchanged at 3.24 percent. As per the Consumer Price Index (CPI) data released yesterday, retail inflation for October rose to a 7-month high of 3.58 percent on costlier food items, especially vegetables. Besides, industrial production for September expanded at 3.8 percent, on poor showing by the manufacturing sector coupled with a decline in consumer durables output. Last month, the Reserve Bank kept benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7 percent for the current fiscal. RBI also raised its inflation forecast to the 4.2-4.6 percent range for the rest of the current fiscal as against 4-4.5 percent previously.

WPI inflation at 6-month high of 3.59%

The Nifty touched a fresh high on Friday after data showed inflation unexpectedly held steady in September, while <a href="http://www.wionews.com/business-economy/tatas-to-merge-telecom-business-with-bharti-airtel-22355" target="_blank">Bharti Airtel surged on its deal to buy the Tata conglomerate&#39;s consumer mobile business.</a>

The NSE Nifty ended up 0.7 per cent at 10,167.45, its highest close ever, after having hit a record high of 10,191.90 intraday. The index was up 1.81 per cent for the week.

The benchmark BSE Sensex ended 0.78 per cent higher at 32,432.69. It rose 1.94 per cent for the week, its biggest such gain since the week ended July 14.

Bharti Airtel jumped 7.7 per cent.

Bharti Airtel surged on its deal to buy the Tata conglomerate's consumer mobile business

The Nifty touched a fresh high on Friday after data showed inflation unexpectedly held steady in September, while Bharti Airtel surged on its deal to buy the Tata conglomerate's consumer mobile business. The NSE Nifty ended up 0.7 per cent at 10,167.45, its highest close ever, after having hit a record high of 10,191.90 intraday. The index was up 1.81 per cent for the week. The benchmark BSE Sensex ended 0.78 per cent higher at 32,432.69. It rose 1.94 per cent for the week, its biggest such gain since the week ended July 14. Bharti Airtel jumped 7.7 per cent.

Nifty scales new peak, Bharti Airtel stocks surge

With the price of the tomato skyrocketing, news agency ANI reports, vendors in Indore&#39;s wholesale market have hired armed guards to safeguard the fruit.&nbsp;

ANI reported that the upward movement in prices had led to thefts, leading to tension amongst sellers.&nbsp;

Which is why they had hired the armed security guards.&nbsp;

ANI added that thefts&nbsp;have been reported from elsewhere too.&nbsp;

It said approximately 300 kilograms of tomatoes were stolen from the vegetable market in Mumbai&#39;s Dahisar earlier this week.

The tomatoes were worth Rs 70,000.

Tomato prices have gone up in recent weeks because of crop damage in tomato-producing states.

Tomatoes, in various parts of the country, are selling for Rs 100-120 a&nbsp;kilogram.&nbsp; 
&nbsp;

Tomatoes are selling for Rs 100-120 a?kilogram in various parts of the country

With the price of the tomato skyrocketing, news agency ANI reports, vendors in Indore's wholesale market have hired armed guards to safeguard the fruit. ANI reported that the upward movement in prices had led to thefts, leading to tension amongst sellers. Which is why they had hired the armed security guards. ANI added that thefts have been reported from elsewhere too. It said approximately 300 kilograms of tomatoes were stolen from the vegetable market in Mumbai's Dahisar earlier this week. The tomatoes were worth Rs 70,000. Tomato prices have gone up in recent weeks because of crop damage in tomato-producing states. Tomatoes, in various parts of the country, are selling for Rs 100-120 a kilogram.

Indore: With tomato prices skyrocketing, sellers deploy armed guards to protect stock

Wholesale inflation soared to a 39-month high of 6.55 per cent in February and retail inflation inched up to 3.65 per cent due to rise in food and fuel prices, justifying the RBI&#39;s move to hold rates in last policy meet.

However, the prices of vegetables and pulses remained subdued during the month, giving some relief to consumers, showed the data released by the government today.

The Wholesale Price Index (WPI) based inflation in January was at 5.25 per cent, while the consumer inflation stood at 3.17 per cent.

The rising inflation is likely to refrain the Reserve Bank from cutting interest rates in its next monetary policy review on April 6.

According to the WPI data, food inflation witnessed a sharp 2.69 per cent rise in February, while the fuel basket surged by 21.02 per cent.

Although the inflation rates of cereals, rice and fruits witnessed an increase, vegetables prices declined by 8.05 per cent during February.

The December WPI inflation rate was revised upwards to 3.68 per cent from the previous 3.39 per cent.

As regards the CPI, it rose to a 4-month high of 3.65 per cent in February after touching a multi-year low of 3.17 per cent in the previous month.

Food inflation at the retail level was recorded at 2.01 per cent, while that in fruits was higher at 8.33 per cent, and fuel and light at 3.9 per cent in February. The rate of price rise in meat and fish was 3.5 per cent.

Prices of sugar and confectionery items rose by 18.83 per cent in February while inflation in milk and milk product increased by 4.22 per cent.

The rate of inflation in household goods and services was 4.09 per cent, while it stood at 4 per cent in health segment. The transport and communication became expensive by 5.39 per cent.

ICRA Principal Economist Aditi Nayar said the likelihood of a repo rate cut by the RBI in April 2017 remains subdued, given its focus on bringing inflation to 4 per cent in a durable manner.

&quot;CPI inflation is expected to rise to above 4.5 per cent in March 2017, as the base effect continues to unwind and prices of perishables track a seasonal uptrend,&quot; Nayar said.

Industry chamber Assocham said the RBI need not get excessively worried about rising WPI and the easing of the interest rate cycle should continue, because the latest WPI inflation does not indicate any improvement in the pricing power of the manufacturers.&nbsp;

(PTI) 
&nbsp;

Prices of vegetables and pulses remained subdued during the month, giving some relief to consumers

Wholesale inflation soared to a 39-month high of 6.55 per cent in February and retail inflation inched up to 3.65 per cent due to rise in food and fuel prices, justifying the RBI's move to hold rates in last policy meet. However, the prices of vegetables and pulses remained subdued during the month, giving some relief to consumers, showed the data released by the government today. The Wholesale Price Index (WPI) based inflation in January was at 5.25 per cent, while the consumer inflation stood at 3.17 per cent. The rising inflation is likely to refrain the Reserve Bank from cutting interest rates in its next monetary policy review on April 6. According to the WPI data, food inflation witnessed a sharp 2.69 per cent rise in February, while the fuel basket surged by 21.02 per cent. Although the inflation rates of cereals, rice and fruits witnessed an increase, vegetables prices declined by 8.05 per cent during February. The December WPI inflation rate was revised upwards to 3.68 per cent from the previous 3.39 per cent. As regards the CPI, it rose to a 4-month high of 3.65 per cent in February after touching a multi-year low of 3.17 per cent in the previous month. Food inflation at the retail level was recorded at 2.01 per cent, while that in fruits was higher at 8.33 per cent, and fuel and light at 3.9 per cent in February. The rate of price rise in meat and fish was 3.5 per cent. Prices of sugar and confectionery items rose by 18.83 per cent in February while inflation in milk and milk product increased by 4.22 per cent. The rate of inflation in household goods and services was 4.09 per cent, while it stood at 4 per cent in health segment. The transport and communication became expensive by 5.39 per cent. ICRA Principal Economist Aditi Nayar said the likelihood of a repo rate cut by the RBI in April 2017 remains subdued, given its focus on bringing inflation to 4 per cent in a durable manner. "CPI inflation is expected to rise to above 4.5 per cent in March 2017, as the base effect continues to unwind and prices of perishables track a seasonal uptrend," Nayar said. Industry chamber Assocham said the RBI need not get excessively worried about rising WPI and the easing of the interest rate cycle should continue, because the latest WPI inflation does not indicate any improvement in the pricing power of the manufacturers. (PTI)

WPI inflation spikes to 39-month high of 6.55% in February

India&#39;s retail inflation cooled to a 13-month low in September, helped by moderating food prices, giving room for the central bank to cut interest rates again if needed.

The consumer price index (CPI) rose 4.31 per cent last month from a year earlier, its slowest pace since August 2015, government data showed on Thursday.

Analysts polled by Reuters had expected the CPI to rise 4.80 per cent, after a 5.05 per cent gain in August.

In a surprise move earlier this month, the Reserve Bank of India (RBI), under new Governor Urjit Patel, cut interest rates by 25 basis points to 6.25 per cent on expectations that food inflation would ease in the months ahead.

The latest prices data backed that assessment as annual food inflation sharply slowed to 3.88 per cent in September from 5.91 per cent a month ago.

With strong crop sowing on the back of good summer rains widely expected to keep a lid on food prices, and a benign outlook for global commodity prices, inflation is expected to remain in check.

&quot;Until February we are going to see benign prints in CPI, which will open up space for at least one more rate cut in fiscal year 2016-17 under the present regime,&quot; said Rupa Rege Nitsure, group chief economist at L&amp;T Finance Holdings.

After this month&#39;s surprise rate cut, many economists revised their interest rate outlook and are now expecting the central bank to cut its key repo rate further by as much as 50 bps.

Bolstering the rate cut hopes is the decision of the RBI&#39;s recently formed monetary policy committee to relax the timeline for meeting its inflation target.

The central bank now expects to hit its 4 per cent inflation target by 2021 instead of 2018 as proposed earlier.

It also slashed the real interest rate target to 1.25 per cent, from the 1.5-2 per cent band set by Patel&#39;s predecessor Raghuram Rajan, giving itself more room to cut rates further.

However, a pending increase in house rent allowance for millions of government employees and pensioners as well as a nationwide rollout of a new sales tax next year are expected to increase prices.&nbsp;

Analysts at Nomura expect the rise in house rent allowance to add 100-150 bps to the headline inflation. Similarly, the implementation of a general sales tax from next April is likely to increase inflation by as much as 70 bps, they say.

 
 
&nbsp;

(Reuters)

Strong crop sowing on the back of good summer rains widely expected to keep food prices from soaring

India's retail inflation cooled to a 13-month low in September, helped by moderating food prices, giving room for the central bank to cut interest rates again if needed. The consumer price index (CPI) rose 4.31 per cent last month from a year earlier, its slowest pace since August 2015, government data showed on Thursday. Analysts polled by Reuters had expected the CPI to rise 4.80 per cent, after a 5.05 per cent gain in August. In a surprise move earlier this month, the Reserve Bank of India (RBI), under new Governor Urjit Patel, cut interest rates by 25 basis points to 6.25 per cent on expectations that food inflation would ease in the months ahead. The latest prices data backed that assessment as annual food inflation sharply slowed to 3.88 per cent in September from 5.91 per cent a month ago. With strong crop sowing on the back of good summer rains widely expected to keep a lid on food prices, and a benign outlook for global commodity prices, inflation is expected to remain in check. "Until February we are going to see benign prints in CPI, which will open up space for at least one more rate cut in fiscal year 2016-17 under the present regime," said Rupa Rege Nitsure, group chief economist at L&T Finance Holdings. After this month's surprise rate cut, many economists revised their interest rate outlook and are now expecting the central bank to cut its key repo rate further by as much as 50 bps. Bolstering the rate cut hopes is the decision of the RBI's recently formed monetary policy committee to relax the timeline for meeting its inflation target. The central bank now expects to hit its 4 per cent inflation target by 2021 instead of 2018 as proposed earlier. It also slashed the real interest rate target to 1.25 per cent, from the 1.5-2 per cent band set by Patel's predecessor Raghuram Rajan, giving itself more room to cut rates further. However, a pending increase in house rent allowance for millions of government employees and pensioners as well as a nationwide rollout of a new sales tax next year are expected to increase prices. Analysts at Nomura expect the rise in house rent allowance to add 100-150 bps to the headline inflation. Similarly, the implementation of a general sales tax from next April is likely to increase inflation by as much as 70 bps, they say. (Reuters)

Indian inflation slows, down to 13-month low

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