Core Inflation

Food inflation in policy formulation a complex issue: EAC-PM member Shah

In July, Chief Economic Advisor V Anantha Nageswaran pitched for excluding food inflation from policy formulation which set it a fierce debate in policy circles with RBI resisting any such move

Japan's core inflation at 2.3% in Oct, slows but stays above BOJ target

Increase in the nationwide core consumer price index (CPI), which includes oil products but excludes fresh food prices, compared with a median market forecast for a 2.2 per cent gain

RBI MPC maintains FY25 inflation forecast, food prices remain a challenge

With food inflation contributing over 75 per cent to headline inflation in May and June and making up 46 per cent of the CPI basket, vegetable prices accounted for 35 per cent of June's inflation

Softer core inflation data drives India 10-year bond yield to 4-month low

U.S. yields eased last week after December producer prices data fell unexpectedly, raising bets of an early interest rate cut by the Federal Reserve

Growth momentum continues, but private consumption and capex weak

Momentum may not sustain into next year; policymakers should stay vigilant and build buffers

Inflation risks

Supply-side issues will complicate policy choices

Stabilising core inflation shows easing price pressures in economy: RBI

Vegetable prices eased in August and brought down retail inflation to 6.8%. This is likely to continue in September, the Reserve Bank of India said in its monthly bulletin

US consumer spending flat in March; core inflation still strong

The economy expanded at a 2.6% rate in the fourth quarter

Core inflation falls in March but health inflation remains steady, elevated

Household goods and services, personal care products still hovering at high levels

Core inflation still elevated despite muted demand, easing supply situation

Some economists believe that firms are using the excuse of supply disruptions, earlier due to Covid-19 and now the Russia-Ukraine war, to increase prices, calling it 'excuseflation'

India needs its conglomerates

A call to dismantle them when the world hasn't done so is economic hara-kiri

Core inflation must ease towards 4%, says RBI MPC's Shashanka Bhide

"High core inflation also points to the cost-price nexus in the economy more sharply," Bhide said, adding that stabilizing core prices was necessary for manufacturing firms to expand their capacities

Are the markets ignoring the possibility of higher inflation?

Globally, too, sticky inflation seems to be a cause for concern. Last week, two Federal Reserve (US Fed) officials suggested that the US central bank may need to keep interest rates elevated ahead

India's retail inflation at three-month high, hits 6.52% in January

Core inflation, that excludes food and fuel prices, remained sticky above the 6% mark

Retail inflation likely rebounded from 12 months low to 5.9% in January

Core inflation, which excludes volatile food and fuel prices, was still running at 6.10% in December, which makes it difficult for the RBI to look away and to keep the tightening cycle going

RBI MPC: When and where to watch policy announcement by Shaktikanta Das

RBI monetary policy: In December, Das had said that despite consecutive rate hikes, core inflation had continued to remain 'sticky'

Declining core inflation limits need for further rate hikes by RBI: S&P

S&P Global Ratings on Tuesday said core inflation in India has been declining sequentially, and an elevated 6.25 per cent policy rate limits the need for further rate hikes. The Reserve Bank has increased the short-term lending rate by 225 basis points since May last year to contain inflation, mostly driven by external factors, especially global supply chain disruption, following the Russia-Ukraine war outbreak. The policy rate now stands at 6.25 per cent. The RBI's rate-setting panel - Monetary Policy Committee (MPC) - will decide on the interest rate on Wednesday. "In India, core inflation has been elevated for longer; however, it eased sequentially in the second half of 2022. An already elevated 6.25 per cent policy rate limits the need for further increases," S&P said in a report. The RBI has been tasked to ensure that retail inflation remains at 4 per cent with a margin of 2 per cent. However, external factors have led retail inflation to remain above the upper tolerance .

Focus must stay on core inflation, says RBI governor Shaktikanta Das

Banks developed culture of prudence; corporate loan demand to pick up

Reducing core inflation key to easing prices: MPC member Shashanka Bhide

Core inflation, calculated after stripping out volatile food and energy prices, has stayed above 6% for 14 months in a row, while retail inflation cooled to 5.88% in November

Statsguru: Energy to food prices, 6 charts explain India's inflation woes

In terms of food prices, India seems to be doing much better than the Western economies, owing to it being less dependent on imports