Onion prices could fall to Rs 20 a kilogram by March, Consumer Affairs Secretary Rohit Singh has told Moneycontrol.
Nomura, however, expects a slower year-on-year GDP growth at 5.5 percent for FY24 against RBI’s projection of 6.5 percent
Inflation is above the RBI’s 6 percent target not only in food and beverages, but also clothing and footwear, fuel & light, household goods and services, health services and personal care and effects
Equities’ trajectory in the near future may depend on whether Tuesday’s consumer price index report shows inflation is responding to the most aggressive Fed hiking cycle since the 1980s
Consumer price inflation in India is among the highest in the world while the contraction in growth has been among the highest
Rising inflation will have an immediate effect on consumption demand. On the other hand, there's only so much rate cuts can do.
In the national context, the month of August is auspicious for more than one reason. In August 1958, the government recognized the Bombay Stock Exchange as the first bourse to come under the Securities Contracts (Regulation) Act.
Even as consumer price inflation (CPI) has come down due to a dip in food inflation and Index of Industrial Production (IIP) also seen a slip as a fallout of demonetisation, the former could see upside pressure hereon, Crisil said today.
Market participants are also digesting the fallout of the government's move to demonetise high-value notes.
August consumer price index (CPI) fell sharply to 5.05 percent year-on-year from 6.07 percent in July, thanks a sharp fall in food prices, which enjoy about 50 percent weight in the inflation basket, government data released today showed.
August exports and imports are expected to remain in contractionary territory after tanking an annual 6.8 and 19 percent, respectively, in the previous month. Analysts at Moody's estimate the August trade deficit at USD 7.1 billion, a slight narrowing from July's USD 7.76 billion deficit.
Exports slid 2.8 percent on-year following July's 4.4 percent drop, coming in better than Reuters expectations for a 4 percent decline.
As the country's parliament meets, hopes are high that lawmakers will finally pass a reform that may prove to be one of the most meaningful achievements of his leadership.
Consumer price inflation, which the Reserve Bank of India (RBI) targets in setting interest rates, likely moved up to 5 percent last month from a provisional 4.83 percent in March, according to economists surveyed by Reuters.
The central bank maintained its negative 0.1 percent deposit rate and its 80 trillion yen base money target. However, it did leave the door open to additional easing steps and said it will provide loans at zero interest rates to areas impacted by the recent Kyushu earthquakes.
RBI has however cautioned that while oil prices, barring geopolitical shocks, are expected to remain benign for a few more quarters, the uptick of CPI inflation excluding food and fuel for two months in succession warrants vigilance.
Consumer price inflation fell for the third consecutive month, but after excluding the effect of lower energy bills, household costs rose.
Retail inflation in India has slowed sharply, but a surge in prices of items like lentils threatens the popularity of Prime Minister Narendra Modi, whose party lost elections in India's third-most populous state on Sunday.
"While the general belief is that monsoon failure would lead to skyrocketing inflation, led by high food prices, there's no conclusive evidence of this," said Société Générale economist Kunal Kumar Kundu in a note on Monday.
Analysts said this high reading could dampen the possibility of a rate cut by the Reserve Bank in August
The dismal fourth quarter earnings notwithstanding, Akash Singhania, Head-Equity, Deutsche Asset Management India says on an annualised basis, corporate earnings are likely to grow in double digits for FY16 as well as the subsequent two to three years.
According to CARE Ratings, RBI is expected to hold interest rate at the existing level in its next policy announcement.
The RBI will have freedom to use its instruments for monetary transmission, Subramanian told reporters after the central bank and the government struck a pact to shift to a policy framework based on targeting consumer price inflation.
The government and Reserve Bank of India have signed a monetary policy framework deal that will set a central target for consumer price inflation of 4 percent for the 2016/17 fiscal year, the finance ministry said on Monday.
The consumer price inflation for January, based on new methodology, came in at 5.11 percent year-on-year, compared to 4.28 percent (also on new base) in December.