The price rise measured in terms of Wholesale Price Index rose for the second straight month, to 5.79 per cent in July, on account of double digit rise in prices of food articles, mainly vegetables, including onion.
Food articles inflation at 8.43% compared to 8.14% m-o-m.
Clouding the inflation outlook is the recommendation of the 7th pay panel for an average 24 per cent pay hike for millions of its employees, which would lift demand-driven price pressures.
ITC was the top gainer in the Sensex pack, rising around 3 per cent, followed by HDFC Bank, PowerGrid, ICICI Bank, IndusInd Bank and NTPC. Nifty surged 176.80 points to a new lifetime closing high of 18,338.55.
'There are occasions when the prices of individual items like food raise inflation; then supply-side measures must be taken.' 'But if there is continued inflation, it means liquidity is aggravating the situation.'
Inflation has dropped to 0.48 per cent for the week ended May 2 from 0.70 per cent in the previous week.
Emerging markets such as India have always run higher inflation rates than developed economies such as the US and countries of Western Europe. But for the first time in the past 30 years, the US reported a higher consumer price inflation (CPI) rate than India in five consecutive months. The US reported a CPI rate of 7.5 per cent in January 2022 against 6.01 per cent in India and analysts expect the trend to continue for at least a few months more
According to bankers and economists, there is room for further rate cut by the RBI as retail and wholesale inflation rates have remained benign.
Tech Mahindra was the top laggard in the Sensex pack, cracking over 5 per cent, followed by Infosys, HDFC, IndusInd Bank, Reliance Industries and NTPC. On the other hand, Hero MotoCorp, L&T, Maruti, UltraTech Cement and Sun Pharma led the gainers' chart.
Zero inflation will pave way for rate cuts in the next RBI policy.
The country's economic growth slipped to a decade-low of 4.5 per cent in 2012-13 and is estimated at 4.9 per cent in the current financial year.
Softening of global commodity prices might not help much
India Inc has an impressive report card to show for the first quarter of this financial year.
International Monetary Fund (IMF) chief economist Gita Gopinath has made a strong case for regulating cryptocurrencies, saying it will always be a challenge to ban them as they operate from offshore exchanges. Gopinath also suggested a global policy and co-ordinated action for regulating cryptocurrencies. "I think cryptocurrencies are a particular challenge for emerging markets. "It seems to be more attractive to adopt cryptocurrencies and assets in emerging economies than in advanced economies," she said while addressing an event organised by the National Council of Applied Economic Research (NCAER) on Wednesday.
Inflation increased to 4.13 per cent for the week ended June 23 compared to 4.03 per cent in the previous week mainly due to rising prices of food articles and manufactured products.
Inflation declined to 5.06 per cent for the week ended May 19 as compared to 5.27 per cent in the previous week due to lower prices of food articles including moong and wheat, and manufactured products.
Inflation rose to 0.70 per cent for the week ended April 25 on account of higher prices of essential food articles like cereals, pulses, vegetable, milk and sugar.
"The WPI is not a true reflection of the burden put on the people through the rise in prices of essential commodities. It is a misnomer to use it as an index for measuring inflation," party leader Sitaram Yechury told reporters. Quoting the oft-repeated phrase 'statistics, more statistics and damned lies', he said the weightage of the basket of food items to calculate the WPI was 22 per cent as against that of steel products which was 25 per cent.
Inflation eased to 0.18 per cent, the lowest ever in the last three decades, even as prices of food articles like pulses, cereals and vegetable hardened during the week ended April 4.
Bajaj Finserv was the top loser in the Sensex pack, shedding around 3 per cent, followed by Bajaj Auto, Bajaj Finance, L&T, Asian Paints, Dr Reddy's, ICICI Bank, HDFC Bank and RIL. NSE Nifty finished 101.45 points down at 14,929.50.
It is the six per cent target RBI is more concerned about.
Inflation declined for the tenth consecutive week today to 5.24 per cent for the week ended January 3, primarily due to decline in prices of food articles.
Concerns related to capital outflows in the aftermath of the first US interest rate hike in nearly a decade predominantly weighed on the rupee trade.
Inflation increased to 3.11 per cent for the week ended November 3, compared to 2.97 per cent a week ago, mainly due to rise in prices of food items, petroleum products and manufactured articles.
The wholesale prices-based inflation rose by 0.21 per cent at 4.82 per cent during the week ended August 5, as against 4.61 per cent for the previous week, with some manufactured products along with aviation turbine fuel becoming costlier.
The wholesale price-based index stood at 5.27 per cent in the corresponding week a year ago.
Repo rate may well end 2013 at 8 per cent, where it had begun the year.
The rupee on Tuesday recovered from its all-time intra day low of 77.79 to close higher by 7 paise on a stellar rally in domestic stock markets. After opening lower at 77.67, the local unit plunged further to its all-time intra-day low of 77.79 due to a spike in crude oil prices and disappointing macroeconomic data. However, a strong rally in domestic equities helped the rupee rebound and close at 77.48 (provisional), showing net gains of 7 paise over the last close of 77.55. The forex market was closed on Monday on account of Buddha Purnima.
The new wholesale price-based inflation basket will have as many as 676 products, including LCD TVs, mobile phones, and packaged drinking water among others, and is likely to be rolled out in June or July.
The recent softening of inflation is purely a base effect at play.
The Reserve Bank had kept policy rate unchanged in its review on April 7.
The change in the baseline for IIP and WPI, currently at 2004-05, is expected to bring in more accuracy in mapping the level of economic activity and calculating other numbers like national accounts.
After consumer price index jumped the 6.3-per cent mark in May and wholesale inflation set a record of 12.94 per cent, house economists at Swiss brokerage UBS Securities have warned that the country is facing more upside risks on the inflation front that is set to averaging at 5 per cent for the year. Rising prices of edible oils and protein rich items pushed retail inflation to a six-month high of 6.3 per cent in May, breaching the comfort level of the Reserve Bank and thus rendering reduction in interest rates a difficult proposition in the near term. Led by petrol price, that has crossed the Rs 100-mark in many states, wholesale inflation too accelerated to a record 12.94 per cent in May. While crude oil has crossed $70 a barrel on account of rising prices of crude oil and manufactured goods due to spike in commodities, and the low base of last year due to the lockdown.
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After a string of extremely low and even negative monthly numbers, the industrial sector grew by 2.6 per cent year on year, far exceeding expectations.
The rupee appreciated 7 paise to 79.74 against the US dollar in early trade on Thursday as a positive trend in domestic equities supported the local unit. However, a strong American currency overseas and forex outflows restricted the rupee's gain, dealers said. At the interbank foreign exchange, the rupee opened at 79.72 against the American dollar, then went lower to trade at 79.74 against the greenback in early deals, registering a gain of 7 paise over the last close.
Inflation rose to 3.42 per cent for the week ended September 22, compared to 3.23 per cent in the previous week, mainly due to rise in prices of manufactured items like salt, imported edible oil and some food products. The wholesale price-based index stood at 5.43 per cent in the corresponding week a year ago.
On the reduction in the SLR ratio, he said it was a signal from the point of view of long-term reforms.
Inflation remained unchanged at the previous week's level of 4.27 per cent for the week ended July 7, despite a fall in prices of fruit and vegetables, poultry chicken, moong and masur, and some manufactured items.
Inflation further eased to 4.80 per cent for the week ended June 2 as compared to 4.85 per cent in the previous week, mainly due to decline in food prices and some fuel and manufactured items.
Next set of Q4 FY16 earnings, progress of monsoon along with election poll outcome will dictate market trend this week
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