Page 4 - Latest Updates on Inflation
RBI's shift to neutral stance suggests rate cut likely in December
Uncertainty remains elevated on a number of fronts, not least on the path for food inflation and external tensions
 "RBI's shift to neutral stance suggests rate cut likely in December")
Greater confidence that inflation moderating in Q3...but risks remain: Das
We have to be very careful because there is every chance that inflation will simply bolt again, says Das
 "Greater confidence that inflation moderating in Q3...but risks remain: Das")
Wait and watch: Geopolitical threats to inflation outcomes have increased
Crises in West Asia and consequent volatility in prices of petrochemicals have historically led to inflation spikes and broader economic instability in India
 "Wait and watch: Geopolitical threats to inflation outcomes have increased")
RBI monetary policy preview: Expecting more nimble and prudent guidance
CPI-based inflation is expected to broadly align near the RBI's projection of 4.5% in 2024-25, despite perishable food price shock due to repeated weather aberrations
 "RBI monetary policy preview: Expecting more nimble and prudent guidance")
World Food Price Index registers biggest increase since March 2022
An index of food-commodity prices created by the United Nations' Food and Agriculture Organization rose to the highest level since August last year, according to data released
 "World Food Price Index registers biggest increase since March 2022")
RBI faces a delicate balancing act ahead of key monetary policy meet
It will be important for monetary policy not to inadvertently accentuate asset price inflation, financial exuberance and the associated financial stability risks that come with it
 "RBI faces a delicate balancing act ahead of key monetary policy meet")
Has there been a slowdown in money supply after inflation targeting?
Apprehensions have been expressed in public domain of a slowdown in money supply on the back of an inadequate reserve money expansion and this could play a role in growth slowdown
 "Has there been a slowdown in money supply after inflation targeting?")
Monetary policy needs recalibration due to domestic reasons, not the Fed
Early reports suggest softer consumer demand at the beginning of the festive season, with discounts and incentives offered by automakers and online platforms to boost sales and clear inventory
 "Monetary policy needs recalibration due to domestic reasons, not the Fed")
Retail inflation for industrial workers inches up at 2.44% in August
Retail inflation for industrial workers inched up marginally to 2.44 per cent in August against 2.15 per cent in July this year.
 "Retail inflation for industrial workers inches up at 2.44% in August")
Inflation in Europe falls below 2%, paves way for faster interest rate cuts
Tuesday's official figure coupled with an anemic growth outlook could pave the way for faster interest rate cuts from the ECB, which has already trimmed rates twice
 "Inflation in Europe falls below 2%, paves way for faster interest rate cuts")
Fed drives global push to cut rates despite uncertainties over 2025
Whatever happens, a sustained period of central bank activism, in contrast to the recent hiatus of higher-for-longer rates, is likely to take hold
 "Fed drives global push to cut rates despite uncertainties over 2025")
Time for private investment is now; delays risk economic competitiveness
Despite softening inflation, the degrees of freedom for the central bank to reduce interest rates might decrease, due to higher government borrowing to keep pump-priming the economy
 "Time for private investment is now; delays risk economic competitiveness")
WPI inflation drops to 4-month low of 1.31% in Aug on lower prices
Food price comes in at 3.11%, compared to 3.45% in July, according to government data
 "WPI inflation drops to 4-month low of 1.31% in Aug on lower prices")
Rate cut hinges on inflation trajectory: RBI Governor Shaktikanta Das
Rupee strength driven by strong fundamentals, not artificial intervention: RBI guv
 "Rate cut hinges on inflation trajectory: RBI Governor Shaktikanta Das")
Have distance to cover on inflation, can't look other way: RBI Governor
Central bank in no rush to cut rates as projections say inflation is moderating, says Shaktikanta Das
 "Have distance to cover on inflation, can't look other way: RBI Governor")
Pakistan central bank's MPC cuts key policy rates by 200 bps to 17.5%
The State Bank in a statement said that the Monetary Policy Committee (MPC) decided to reduce the policy rate by 200 basis points (bps) to 17.5 per cent in its meeting on Thursday
 "Pakistan central bank's MPC cuts key policy rates by 200 bps to 17.5%")
Inflation likely held below RBI's target at 3.5% again in Aug, finds survey
Although food prices, which make up nearly half the inflation basket, have eased significantly in the last two months, erratic monsoon rains across India could harm crop yields
 "Inflation likely held below RBI's target at 3.5% again in Aug, finds survey")
Inflation debate must consider downsides of alternative frameworks
To be fair, the RBI or the MPC on its own cannot change the target or stop taking into account one part of the consumer basket without appropriate amendment to the RBI Act
ECB at risk of becoming too restrictive, cuts interest rates: Cipollone
"The data so far confirms our direction of travel and I hope that they will allow us to continue to be less restrictive," Cipollone told Le Monde in an interview
 "ECB at risk of becoming too restrictive, cuts interest rates: Cipollone")
Lenders' deposit shortage could put speed limit on credit-fueled investment
The govt is making the deposit crunch worse by taxing savers aggressively, but keeping the proceeds away from the financial system. Bankers are compounding the problem by not paying enough to savers
 "Lenders' deposit shortage could put speed limit on credit-fueled investment")
