Retail Inflation Quickens To 4.62% In October, Breaches RBI's Medium-Term Target
Retail inflation accelerated to 4.62 per cent in October breaching the Reserve Bank of India's (RBI) medium-term target of 4 per cent for the first time in 15 months and hitting highest level since June 2018 on the back of rising vegetable prices, government data showed. Inflation - gauged by the Consumer Price Index (CPI) - had quickened to 3.99 per cent in September. The inflation in the food basket spiked to 7.89 per cent in October 2019 as against 5.11 per cent the preceding month.
Prices of most vegetables climbed last month as monsoon downpours delayed harvests and disrupted supplies. That was despite the government's ban on onion exports.
A poll of 39 economists conducted by news agency Reuters between November 4 and 9 had forecast annual consumer price inflation rose to 4.25 per cent in October.
The pickup in consumer inflation leaves little room for the central bank to further ease the monetary policy. The RBI has so far this year lowered the repo rate - or the key interest rate at which it lends short-term funds to commercial banks - by 135 points (1.35 percentage points) to 5.15 per cent.
In separate data released on Monday, the country's economic slowdown deepened as the industrial production measured by the Index of Industrial Production (IIP) contracted for second month in a row in September.
Index of industrial production contracted by 4.3 per cent in September, its fastest pace of fall in over six years, official data showed.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
-
Everything, Everywhere, All At Once: Dalal Street's Week To Forget | Joining The Dots
Visa curbs, a Starlink spat and cancer drug caps: what connects this week's shocks for Indian markets
-
India Is Going Abroad For Critical Minerals. But It May Take Years To Pay Off | The Reason Why
Although India's steps are in the right direction, they remain modest compared with India's growing dependence.
-
When Everyone Has AI, What Gives You An Edge?
India's young workforce is entering an uncertain world of work where powerful AI tools are becoming widely accessible. The advantage will belong to those who combine deep expertise with digital fluency, and the distinctly human capabilities that technology cannot manufacture.
-
Wrong Labels, High Pesticide Residues Holding Back Agri Exports | The Reason Why
India needs stronger domestic food-safety and labelling standards, with best practices becoming part of everyday business for farmers, traders and food companies.
-
India Is Easy To Enter, Harder To Attract | The Week In Whys
The question is no longer just whether India can attract companies and capital. It is how much value they create here, how deeply they invest, and whether India remains relatively attractive when they have plenty of other options.
