India Inflation

Outgoing RBI Governor Shaktikanta Das hoped that there would be a nationwide roll-out of Unified Lending Interface

A fall in inflation will be welcomed by households in the world's most populous country, where food takes up a large chunk of budgets

The pace of the country's economic growth moderated sharply in the second quarter ended September 2024

RBI Monetary Policy Meeting Dec 2024 Updates: Catch all the updates here

Nomura noted that high prices were concentrated in a few items, including food, rather than being broad-based, and that inflation excluding vegetables and other volatile items was still subdued

After rising 4.3 per cent last year, home prices in India - broadly referring to housing in major cities - were expected to rise 7.0 per cent this year, 6.5 per cent in 2025 and 7.5 per cent in 2026

The Q2FY25 growth in manufacturing slowed to 2.2 per cent, significantly below the 7 per cent recorded in Q1 and 14.3 per cent a year earlier

The US election shows the conventional wisdom was right all along: Controlling inflation should be the primary focus of macro policy

Wholesale price inflation rose to a 4-month high of 2.36 per cent in October as prices of food items, especially vegetables, and manufactured goods turned dearer, as per the government data released on Thursday. The wholesale price index (WPI) based inflation was 1.84 per cent in September 2024. It was (-) 0.26 per cent in October, last year. As per the data, inflation in food items shot up to 13.54 per cent in October, as against 11.53 per cent in September. This was led by 63.04 per cent inflation in vegetables, as against 48.73 per cent in September. Inflation in potato and onion remained high at 78.73 per cent and 39.25 per cent, respectively, in October. Fuel and power category witnessed deflation of 5.79 per cent in October, against a deflation of 4.05 per cent in September. In manufactured items, inflation was 1.50 per cent in October, as against 1 per cent in the previous month. The month of October witnessed the second consecutive month of rise in WPI inflation print. WPI

Since the end of the pandemic, India's economic growth has been driven in large part by urban consumption, however, that now seems to be changing

Core inflation, which excludes volatile items such as food and energy and is seen as a better gauge of domestic demand, was forecast to be 3.60 per cent in October, according to the median estimate

RBI Governor Shaktikanta Das discusses inflation outlook and economic resilience at the Business Standard BFSI Insight Summit

Leading FMCG companies reported a decline in margins in the September quarter on account of higher input costs and food inflation, which ultimately slowed down the pace of urban consumption. Rising prices of commodity inputs such as palm oil, coffee and cocoa were also accentuated and some FMCG firms have hinted at a price hike. HUL, Godrej Consumer Products Ltd (GCPL), Marico, ITC, and Tata Consumer Products Ltd (TCPL) have expressed concerns over squeezing urban consumption, which according to industry experts forms 65-68 per cent of FMCG total sales. "We think this is a short-term hit and we will recover the margins through judicious price increase and stabilising of costs," said GCPL Managing Director and CEO Sudhir Sitapati in a Q2 earning statement. GCPL, makers of Cinthol, Godrej No 1, HIT had a steady quarter given the headwinds of oil costs and tough consumer demand in India and its standalone EBITDA margin was lower, caused entirely by high inflation in palm oil. The rur

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Balance between inflation & growth is well-poised, the Indian economy reflects a picture of stability and strength, said Shaktikanta Das

The Congress on Friday said inequality, wage stagnation and inflation were "structurally corrosive" to India's long-term growth prospects and urged the government to address concerns over the growing financialisation of the Indian economy. Congress general secretary in-charge communications Jairam Ramesh said the centrality of increasing the rates of private investment as a percentage of GDP in order to sustain higher rates of economic growth was incontrovertible. These rates have fallen from 33.4 per cent (2004-2014) to 28.7 per cent (2014-2023), he said. Ramesh shared an article by a noted public finance economist and said it revealed issues that were a further cause for concern. Citing the article, Ramesh said the share of passive income -- income from rent, dividends, capital gains, etc -- in the total reported income had increased from 16 per cent in 2016-17 to 24 per cent in 2023-2024. For the corporate sector, the share of passive income (income outside of operating profits

Headline inflation likely to remain on track throughout 2025-26

The developments come at a time when the markets are already grappling with geopolitical developments in West Asia and the uncertainty surrounding the outcome of the US presidential polls

While the September inflation print may see a significant pick-up as base effects turn adverse and food prices register an upturn, food inflation, the RBI said, is expected to ease by Q4:2024-25