Beat Inflation with Good Investment

 Beat Inflation with Good Investment

India's CPI stood at 7.65% in January

Provisional annual inflation rate based on all India general CPI (combined) for January 2012 on a point-to-point basis (January 2012 over January 2011) is 7.65%. The corresponding inflation rates for Rural and Urban areas are 7.38% and 8.25%, respectively. Inflation as measured by the Wholesale Price Index (WPI) declined to a 26-month low of 6.55% in January. The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation releases Consumer Price Indices (CPI) on base 2010=100 for all-India and States/UTs separately for Rural, Urban and Combined every month with effect from January 2011. The General Indices for Rural, Urban and Combined are 115.0, 112.8 and 114.0 respectively. The annual consumer price index (CPI) data released for the first time today measures retail prices in major food groups, fuel, clothing, housing and education across rural and urban India. Provisional annual inflation rates of January 2012 for Rural, Urban and Combined in respect of ‘Food & Beverages’ stood at 4.18%, 3.98% and 4.11%, respectively, said Srikant Kumar Jena, Minister of State (Independent charge), Ministry of Statistics and Programme Implementation. Vegetables were cheaper by over 24 per cent on a nationwide basis in January over the same month last year. Milk & Milk products turned dearer by 16.53% on an annual basis, while the price of Oils and Fats rose by 13.47%. Condiments and Spices turned costlier by 11.83% and Fruits by 10.62%. The inflation numbers for Fuel & Light, Clothing, Bedding and Footwear segments were in double-digits.

Food inflation plunges below 1%...Fuel inflation too dips

Food inflation in India plunged in the third week of December, falling under the 1% mark, data released by the Government showed on Thursday. Fuel inflation too dropped. The sharp drop in food inflation over the past few weeks is likely to provide some much-needed breather to consumers and the policymakers alike. However, it will be a while before the RBI starts considering a cut in its policy rates. For that to happen, the headline WPI print should also fall sharply. Food inflation declined to 0.42% in the week ended December 17 from 1.81% in the preceding week, the Commerce & Industry Ministry said today. Food inflation stood at 15.48% in the corresponding week last year. Inflation in the Primary Articles group fell to 2.70% in the week under review, from 3.78% in the week ended December 10, according to the Commerce Ministry statement. It was at 18.85% in the year-ago period. Inflation in the Fuel & Power group stood at 14.37% in the week ended December 11, from 15.24% in the previous week, the Government data showed. It was at 11.85% in the comparable week of the previous year. Inflation in the Non-Food Articles space slid to 0.28% in the week under review from 1.37% in the previous week, the Government data showed. It was at 26.05% in the same period a year earlier.

Food inflation tumbles below 7%...Fuel inflation steady

Food inflation in India slid further in the fourth week of November, falling under the 7% mark, data released by the Government showed on Thursday. Fuel inflation remained steady. The sharp drop in food inflation over the past one month or so is likely to provide some much-needed breather to consumers and the policymakers. However, it will be a while before the RBI starts considering a cut in its policy rates. Food inflation declined to 6.6% in the week ended November 26 from 8% in the preceding week, the Commerce & Industry Ministry said today. Food inflation stood at 8.93% in the corresponding week last year. Inflation in the Primary Articles group fell to 6.92% in the week under review, from 7.74% in the week ended November 19, according to the Commerce Ministry statement. It was at 14.01% in the year-ago period. Inflation in the Fuel & Power group stood at 15.53% in the week ended November 26, unchanged compared to the previous week, the Government data showed. It was at 10.07% in the comparable week of the previous year. Inflation in the Non-Food Articles space slid to 1.37% in the week under review from 2.14% in the previous week, the Government data showed. It was at 27.31% in the same period a year earlier.

High food prices may warrant more RBI action: Subbarao

Further monetary action from the Reserve Bank of India (RBI) cannot be ruled out as it tries to anchor inflation expectations amid persistently high food prices, central bank Governor D. Subbarao said on Tuesday. "The direct role of monetary policy in combating food price pressures is limited, but in the face of sustained high food inflation, monetary action may still be warranted to anchor inflation expectations," Subbarao said at the 25th Annual Conference of the Indian Society of Agricultural Marketing at Hyderabad. The RBI has raised rates 13 times since March 2010 to tame spiraling and sticky inflation largely driven by high food prices. But in its last policy meeting, the RBI hinted that it could hold rates steady in December policy review and maintain status quo if inflation remains within its projected trajectory. A lasting solution to food price pressures lies in a supply response that raises agricultural production and productivity, improves supply chain management and sets the right incentive framework for both producers and consumers, the RBI Governor said. The outlook on food inflation in the short to medium term will be determined by the speed and quality of such a supply response by the Government, he added. Government data released last week showed that India's food inflation rose 10.63% and the fuel inflation surged 15.49% in the year through Nov. 5. On the rupee hitting a new record low today, Subbarao said that the RBI's rupee policy remains the same. "Our (RBI's) policy remains the same, which is to manage volatility in exchange rate and to ensure that exchange rate volatility does not impair macro-economic stability," he said. Subbarao added that exchange rate movement, especially in the last three to four days was driven by global dynamics and the RBI expects reverse adjustment to take place when the European situation resolves itself.

Food inflation hits 9-week low...Fuel inflation steady

Food inflation in India fell sharply in the second week of November to touch its lowest level in nine weeks, and fuel inflation too remained static, data released by the Government showed on Thursday. The drop in food inflation could provide some much-needed breather to the consumers as well as the policymakers. However, one must wait and see if this is a broader trend or just a temporary relief. Food inflation declined to 9.01% in the week ended November 12 from 10.63% in the preceding week, the Commerce & Industry Ministry said today. Food inflation stood at 11.38% in the corresponding week last year. Inflation in the Primary Articles group also fell to 9.08% in the week under review, from 10.39% in the week ended November 5, according to the Commerce Ministry statement. It was at 15.18% in the year-ago period. Inflation in the Fuel & Power group stood at 15.49% in the week ended November 12, unchanged from the previous week, the Government data showed. It was at 10.57% in the comparable week of the previous year. Inflation in the Non-Food Articles space slid to 4.05% in the week under review from 5.33% in the previous week, the Government data showed. It was at 23.64% in the same period a year earlier. Inflation in the Minerals group rose to 18.51% in the week ended November 12 from 18.02% in the week ended November 5, according to the Commerce Ministry data. Inflation in this group stood at 28.87% in the year-ago period.

Food inflation spikes to 9-month high

Food inflation in India accelerated further in the penultimate week of October, driven by soaring vegetable prices even as onion prices tumbled. Inflation in the fuel group declined. Data released by the government on Thursday showed that food inflation rose to 12.21% year on year for the week ended October 22, compared with 11.43% in the preceding week. Food inflation stood at 13.55% in the corresponding week last year. Inflation in the Primary Articles group increased to 12.08% in the week under review, from 11.75% in the week ended October 15, according to the Commerce Ministry statement. It was at 17.09% in the year-ago period. Inflation in the Fuel & Power group fell to 14.50% in the week ended October 22 from 14.70% in the previous week, the Government data showed. It was at 10.67% in the comparable week of the previous year. Inflation in the Non-Food Articles space declined to 6.43% in the week under review from 7.67% in the previous week, the Government data showed. It was at 25.09% in the same period a year earlier. Inflation in the Minerals group was at 21.59% in the week ended October 22, unchanged from the week ended October 15, according to the Commerce Ministry data. Inflation in this group stood at 29.09% in the year-ago period.

RBI Rate Hike

RBI Rate Hike

Food inflation back above 10%...Fuel inflation ~15%

The annual rate of inflation in the food space increased in the second week of October while inflation in the fuel group also edged up, data released by the Government showed on Thursday. Annual inflation in the Food Articles group rose to 10.60% in the week ended October 8 from 9.32% in the preceding week, the Commerce & Industry Ministry said in a statement. It was at 15.72% in the corresponding period of last year. Inflation in the Primary Articles group increased to 11.18% in the week under review, from 10.60% in the week ended October 1, according to the Commerce Ministry statement. It was at 19.03% in the year-ago period. Inflation in the Fuel & Power group rose to 15.17% in the week ended October 8 from 15.10% in the previous week, the Government data showed. It was at 11.14% in the comparable week of the previous year. Inflation in the Non-Food Articles space declined to 8.51% in the week under review from 9.59% in the previous week, the Government data showed today. It was at 27.17% in the same period a year
earlier.

India Inflation - challenge

India Inflation - challenge

Inflation - rate hike concerns

Inflation - rate hike concerns

Inflation

Inflation

Monthly Inflation - Sep 2011

Monthly Inflation - Sep 2011

Food inflation climbs...Fuel inflation steady

The annual rate of inflation in the food space increased in the fourth week of September while inflation in the fuel group remained unchanged, data released by the Government showed on Friday. Annual inflation in the Food Articles group rose to 9.41% in the week ended Sept. 24 versus 9.13% in the preceding week, the Commerce & Industry Ministry said in a statement. It was at 16.88% in the corresponding period of last year. Inflation in the Primary Articles group fell to 10.84% in the week under review, from 11.43% in the week ended Sept. 17, according to the CommerceMinistry statement. It was at 19.58% in the year-ago period. Inflation in the Fuel & Power group was at 14.69% in the week ended September 24, unchanged from the previous week, the Government data showed. It was at 10.80% in the comparable week of the previous year. Inflation in the Non-Food Articles space declined to 10.77% in the week under review from 12.89% in the previous week, the Government data showed today. It was at 24.73% in the same period a year earlier. Inflation in the Minerals group stood at 21.05% in the week ending September 24 versus 24.73% in the week ended Sept. 17, according to the Commerce Ministry data. Inflation in this group stood at 29.61% in the year-ago period. On an annual basis, onions turned costlier by ~10.6% in the week under consideration, vegetable prices were up ~14.9% on an annual basis. Fruits turned costlier by ~11.7% year over year, while Milk prices increased ~10.35% and Egg, Meat & Fish became pricey by ~10.33% compared to the year-ago period.

India Inflation

India Inflation

RBI hikes rates by 50 bps to check inflation

The Reserve Bank of India (RBI) on July 26 raised the key policy rates - the repo rate and the reverse repo rate - by a larger-than-anticipated half a percentage point, as it persists with its efforts to tame the inflation monster notwithstanding some moderation in economic growth. So, the repo rate now stands at 8% and the reverse repo rate is at 7%. There has been no change in the Cash Reserve Ratio (CRR), which stands at 6%. The bank rate has been retained at 6%. The Marginal Standing Facility (MSF) rate, determined with a spread of 100 bps above the repo rate, stands recalibrated at 9% with immediate effect.

India Inflation

India Inflation

FM sees improvement in inflation in coming days

Finance Minister Pranab Mukherjee expressed hope that inflation situation would improve in the days ahead. "If this declining trend continues, I do hope it will have a moderating influence on the price front," he told reporters in New Delhi. Mukherjee said that the domestic situation on inflation was improving, though concerns remain over international issues. "The trend is encouraging so far as the domestic sector is concerned. But we do not have total control over international issues, international commodity prices, fuel prices. The influence of the external inflationary pressure could have some adverse impact on our domestic front," he said.

In his interaction with the media, the Finance Minister said that he expects WPI inflation to come down to 6-7% by the end of March 2012. "Food inflation which was high at 22% in February 2010 has come down to 8%. This is also not acceptable. But a declining trend is there," he said. On the other hand, the Finance Ministry said that inflation will continue to remain high till December on account of seasonal effects and upward movement in crude oil, manufactured and administered fuel prices.

Mukherjee stuck to the Economic Survey's growth projection of 9% (+/- 0.25%) GDP growth for FY12. But a note circulated by the Finance Ministry scaled down the growth rate to 8.6%, from an initial projection of 9%. The Finance Minister dismissed talk of any drift in UPA II while also rejecting allegations that the Government was going slow on important reforms.

A series of major economic enactments are likely to come up in the monsoon session of Parliament that starts on August 1, he said. Bills on land acquisition, mining & mineral development, food security and the Lokpal will be introduced in the parliament, Mukherjee said. "I see no reason for such cynicism. All measures are being taken and there is no let-up in our efforts. There is

Inflation spikes to 9.44% on fuel price hike

India's annual inflation surged in June from the previous month after the Government allowed state-run oil companies to hike the prices of diesel, LPG and kerosene for the first time in a year, data released by the Government showed. Inflation, as measured by the wholesale price index (WPI), rose to 9.44% in June from 9.06% in May, the Union Commerce & Industry Minister said. Average expectation was for inflation to rise to 9.7%. The Government revised upwards inflation rate for April to 9.74% from the provisional reading of 8.66%. The official WPI for ‘All Commodities’ for June rose by 0.9% to 153.0 from 151.7 in the previous month. Annual inflation was at 10.25% during the corresponding month of the previous year. Build up inflation in the financial year so far (April-June) was 2.34% compared to a build up of 2.57% in the corresponding period of the previous year.

Food inflation slides below 8%

The annual rate of inflation in the food space decreased in the third week of June, data released by the Government showed. But, inflation in the Fuel & Power space inched higher, the data revealed. Annual inflation in the Food Articles space fell to 7.78% in the week ended June 18 from 9.13% in the previous week, the Commerce & Industry Ministry said. Food inflation was at 20.12% in the year-ago period. Inflation in the Primary Articles group decreased to 11.84% in the week under consideration from 12.62% in the week ended June 11, according to the Commerce Ministry statement. Inflation in the Primary Articles space was at 19.58% in the comparable period last year.