Core Inflation

This is because the weight of food in the CPI basket is likely to come down; therefore, the RBI may continue to target headline inflation, with a mandate of keeping the rate at 4 percent along with a tolerance band of 2 percentage points on either side. The current framework is valid until March 2026.

US core CPI rises less than expected again on drop in car prices

The consumer price index, excluding the often volatile food and energy categories, increased 0.2% from May. On an annual basis, it advanced 2.9%

Fed rate status quo marks 'wait and watch' as Trump 2.0 begins

Overriding concern over tariffs though key rate determinants appear to be in control

Govt's rate cut clamour grows as RBI governor's term nears end

Speaking at SBI’s Economic Conclave on Monday, Finance Minister Nirmala Sitharaman made a case for a rate cut by the Reserve Bank of India. Earlier last week, Commerce minister Piyush Goyal at CNBC TV18’s event also pitched for a reduction in the repo rate.

Chart of the Day | What does the core inflation pattern tell us?

The consistent decline in core inflation in the last one and a half years amid the strong growth momentum is bit unusual and may correct going ahead.

Tariff hikes by telcos likely to fuel FY25 inflation by 10-15 bps

India’s telecom tariffs were raised 10-27 percent by three private telcos in July, after a period of three years. Experts say that telecom tariff hikes will raise FY25 inflation by 10-15 bps

Core inflation decline may not be such a good thing: Economists

India’s services inflation declined 2.67 percent in June, its lowest level since 2011

Core services inflation eases to a nine-year low in FY24

Core inflation in June stood at 3.1 percent, sharply lower than 7.1 percent in February 2022

Inflation target may be delayed despite easing of core inflation, as food inflation risk stays

Core inflation, which excludes volatile components such as food and fuel, was at an all-time low of sub-3 percent in May.

Goldman Sachs revises India’s GDP forecast upwards on RBI dividend bonanza

The global financial institution also expects the Reserve Bank of India to go for a rate cut in the October-December quarter.

Israel, Iran trade punches – What it means for Indian markets

Though the domestic economy looks promising, equities may remain volatile in the near term

RBI may not hurry in cutting rates despite easing CPI inflation, say experts

In March, India's headline retail inflation rate eased to a nine-month low of 4.85 percent, according to data released by the Ministry of Statistics and Programme Implementation on April 12.

RBI may lower inflation forecast by 10-15 bps for FY25, says Kotak AMC’s Abhishek Bisen

Bisen expects the RBI to maintain status quo in April monetary policy, while recognising the challenges with respect to inflation in the economy.

RBI MPC to be cautious about risk from food inflation, likely to keep repo rate unchanged

Goldman's analysts forecast 5.2 percent headline inflation for Q1CY24, driven by food inflation

Brokerages see headline retail inflation declining further in March on back of relief in food prices

Brokerage firms expect India's headline inflation to decline further in March to approximately 5 percent due to lower food prices on a sequential basis

What does 12-year-low core inflation say about India's growth story?

Data released by the Statistics Ministry on March 12 showed India's headline retail inflation stood steady at 5.09 percent in February, although core inflation fell further to 3.3 percent. Economists are divided on what explains the falling core inflation – muted demand or changing consumption patterns.

A tale of two inflations

Inflation continues to be persistent both in India and in the US, but the reasons are different

The curious case of India’s core inflation fall

An inflation targeting monetary policy and fall in global commodity prices explain the deceleration in core inflation in recent times. This fall in core inflation does not indicate a weakening of demand

Softer core inflation may help RBI inch closer to target, say economists

India’s headline retail inflation rate decelerated to a three-month low of 5.10 percent in January.

Easing core inflation boosts confidence in monetary policy's effectiveness: RBI Guv

Das was speaking at the World Economic Forum (WEF) Annual Meetings 2024 at Davos on January 18.

Japan's core inflation slows in November, eases pressure on BOJ

The core consumer price index (CPI), which excludes volatile fresh food but includes fuel costs, rose 2.5% in November from a year earlier, matching market forecasts and slowing from a 2.9% gain in October. It was the slowest pace of rise since a 2.4% growth marked in July 2022.

Chart of the Day: RBI has a core problem in pursuing a higher for longer policy rate

If real interest rates remain elevated and they will if the RBI holds on to its unerring focus of bringing headline inflation to 4 percent, it is likely to dampen demand and even investments from firms.

Why are the US Fed and Street having divergent views?

It is prudent for investors to bet on the resilient domestic earnings story

Nomura pushes back RBI rate cut call by 4 months, hikes FY24 inflation forecast by 50 bps

While surging vegetable prices have pushed up the trajectory of headline retail inflation, Nomura economists see the momentum of core inflation - or inflation excluding food and fuel items - as having fallen sharply

SBI economist rejects Viral Acharya's claim that big firms are behind high core inflation

In March, Acharya - formerly a deputy governor of the RBI - had said in a paper that India's core inflation was persistent and elevated due to the pricing power of its large firms and recommended they be broken up