Inflation hits 41-month low in April at 4.89 per cent
May 14, 2013 (Reuters):
India's headline inflation fell below 5 per cent in April, putting it
back in the Reserve Bank's comfort zone for the first time in more than
three years and fuelling market hopes for more monetary easing to revive
the economy's pedestrian growth rate. April's reading of 4.89 per cent
was the lowest since November 2009 and well below the 5.50 per cent
estimated by analysts in a Reuters poll. The wholesale price index,
India's main inflation measure, rose an annual 5.96 per cent in March.
The number sparked gains in bond markets, which had already
rallied since last week on expectations that easing inflation would lead
the RBI to cut interest rates further. "It is a frenzy. The market
is pricing in a rate cut," said Ashish Vaidya, head of treasury at
UBS in Mumbai. Inflation was mainly cooled by a moderation in food and
fuel costs along with ebbing demand-driven price pressures. Food
inflation dropped to 6.08 per cent in April from 8.73 per cent a month
ago. Fuel prices rose 8.84 per cent on the year compared with an annual
rise of 10.18 per cent in March. Non-food manufacturing inflation,
which the central bank monitors to gauge demand-driven price pressures,
slowed to 2.77 per cent in April from 3.5 per cent a month ago.
"With food prices expected to remain stable,
manufacturing prices weak due to slow growth and commodity prices
stable, inflation is expected to be on a broad downtrend for the next
six months and this, we believe, opens up room for more rate cuts,"
said Rahul Bajoria, Regional Economist at Barclays Capital in Singapore.
"We think there is a possibility of as much as 75 basis points more
rate cuts in the next six months, including 25 basis points in the next
policy in June." . Source: Reuters
Retail inflation rises to 10.91% in February
NEW DELHI, March 13, 2013: Retail inflation moved up for
the fifth consecutive month to 10.91 per cent in February -- remaining in the double-digit terrain for third month in a row -- on account of
higher prices of vegetables, edible oil, cereals and protein-based items.
It was 10.79 per cent in January. The inflation crossed the doubled digit mark in December at 10.56 per cent, against 9.90 per cent in November.
The vegetables basket in February recorded the highest inflation of 21.29 per cent among all the constituents that make the Consumer Price
Index (CPI), according to data released today.
That was followed by cereals wherein inflation was 17.04 per cent. Egg,
meat and fish became costlier by 15.72 per cent during the month. Inflation in oils and fats segment stood at 14.56 per cent.
Besides, pulses became dearer by 12.39 per cent and sugar turned more expensive by 12.10 per cent on an annual basis.
Clothing and footwear witnessed 10.87 per cent increase in prices during the month.
In urban areas, retail inflation rose to 10.84 per cent in February from
10.73 per cent in the previous month. The CPI for rural population increased to 11.01 per cent during the month from 10.88 per cent in January.
The data for wholesale price index (WPI)-based inflation is expected on Thursday. The WPI figures for January stood at 6.62 per cent, much
higher than RBI's comfort level of 5-6 per cent. Source: The Times of India
India's consumer price inflation rises to 10.79 percent
New Delhi, February 12,2013 (IANS): Inflation based on the consumer price index
(CPI) rose to 10.79 percent in January as compared to 10.56 percent in the previous month, on account of a sharp increase in prices of
vegetables, sugar and oils and fats government data showed Tuesday. Vegetables became costlier by 26.11 percent. Sugar became costlier by
12.95 percent year-on-year.
Prices of oil and fats surged by 14.98 percent and cereals became
costlier by 14.90 percent. Prices of pulses jumped by 12.76 percent. The price rise was sharper in rural areas. The Consumer Price
Index-based inflation for rural areas increased 10.88 percent in January as compared to 10.74 percent in the previous month.
However, for urban areas consumer price inflation grew by 10.73 percent
in the month under review as compared to 10.42 percent in the previous month.
Vegetables became costlier by 25.35 percent year-on-year in rural areas while in urban areas the increase was 27.81 percent.
Prices of oils and fats increased by 16.03 percent in rural areas while it increased by 12.82 percent in urban areas.
Sugar prices increased by 13.13% in rural areas, while it increased by 12.40% in urban areas.
The wholesale price index (WPI)-based inflation had moderated to a three-year low of 7.18 percent in December on the softening in the price
rise of fuel and manufactured goods.The WPI-based inflation, the country's main indicator of price rise, was
at 7.24 percent in November and 7.74 percent in corresponding month of previous year. This was the lowest rate of inflation since December 2009.
The WPI data for January is expected Thursday.
Inflation has remained at an elevated level despite a tight monetary
policy adopted by the Reserve Bank of India (RBI).The Reserve Bank of India (RBI) in its monetary policy last month had
slashed key interest rates by 25 basis points and released Rs.18,000 crore additional liquidity into the system.
The apex bank had forecast the March-end WPI inflation at 6.8 percent.
In another development, India's industrial output contracted 0.6 percent
in December 2012, dragged by deceleration in production in mining and manufacturing sectors. In the corresponding month of 2011, this had
registered a growth of 2.7 percent.