On the economic front, 'deflation' is the risk of highest concern for doing business in India, said the Global Risks Report 2016, released here today by the World Economic Forum (WEF) ahead of its annual meeting in Davos next week
Wholesale inflation, as measured by the wholesale price index (WPI), remained in the negative territory for the 14th straight month but the intensity of the contraction eased, with December WPI coming in at -0.73 percent YoY, versus -1.99 percent.
The country's wholesale inflation, which has been in negative territory for thirteen months now, eased a bit, with the wholesale price index coming in at -1.99 percent in November compared to -3.81 percent in October and versus a forecast of -2.59 percent.
RBI Governor Raghuram Rajan has little reason to hold back on his rate cut this month. Perhaps he is holding his hand to see what Janet Yellen is upto at the US Fed later this week. The Fed meets on 17 September.
The government's two five-star economists Raghuram Rajan, of the Reserve Bank, and Chief Economic Advisor Arvind Subramanian, seem to be poles apart when it comes to their readings on inflation.
Addressing the famous Jackson Hole economic symposium of the Kansas City Federal Reserve in Wyoming, Rajan said politics and history both have been important forces in determining the economic policymakers' goals and tactics globally.
Earlier on Friday in a CNBC exclusive, Federal Reserve Vice Chairman Stanley Fischer said it was too early to tell whether volatility in the market made it more or less compelling to raise rates in September.
The Chinese economy faces a 90s Japan-style deflation but one factor will help it.
The recent measure by the Chinese government to devalue its currency was leading to a global fear of a competitive devaluation race. As well, the Fed's expected exit from its zero-interest rate policy is leading to an outflow from emerging markets.
Roads secretary Vijay Chhibber says 8000 km roads were awarded last year, and this year the aim is to award 10,000 km. The strategy, going ahead, is to award atleast 10,000-12,000 km every year, he says
Overall it will be the ninth month of decline that will come through if in case it is in deflation territory and the core inflation is expected then to decline for the fifth straight month.
Kevin Lai, chief economist, Asia ex-Japan, Daiwa Capital Markets, says over the last six months, the big picture in China has been deteriorating. The country is fighting against money outflow, deflation, etc.
The current situation in China requires more reforms, more easing. This has the potential to lead to another leg of depreciation in currencies in the world, leading to a further fall in commodity prices and ultimately deflation, says Andrew Holland, CEO of Ambit Investment Advisors.
Gautam Chhaochharia, head of India research at UBS Securities is bullish on Info Edge in the e-commerce space and likes the auto anciallary space as a whole. He feels auto ancillaries may be a better way to play the auto sector for now.
For anyone expecting interest rates to be stuck near zero for years to come, the past month has been uncomfortable.
Brent crude futures have risen 45 percent. If that is sustained or even increased throughout this year, inflation next year could rise significantly, posing questions for policymakers largely committed to ultra-loose policy.
Inflation, as measured by the wholesale price index (WPI), fell to a steep -2.06 percent, marking the fourth straight month of deflating prices.
Chinese regulators are turning to Japan for lessons on economic history, determined to keep the world‘s second biggest economy from taking the same path of recession and deflation that has blighted its neighbour for the past 20 years.
Activity in China's factory sector edged up to a seven-month high in February but export orders shrank and deflationary pressures persisted, a private business survey showed on Monday, underlying economic fragility that may need more policy support.
In an interview to CNBC-TV18‘s Menaka Doshi, Nobel Prize Winner Christopher Pissarides, spoke about how the ECB can stave off the deflation threat that looms over the eurozone.
The working-age population in China, Hong Kong, Korea, Singapore, Taiwan and Thailand is expected to show almost no growth in 2015 and will start to decline from 2016 onwards
Desai expects corporate earnings growth to pick up after the next couple of quarters. He is bullish on capital goods, banks and consumer discretionary stocks like autos
As the world economy steers over into the new year, one of the its most worrying spots remains the Eurozone. To discuss prospects for the region, as well as for other leading economies such as the US and China, CNBC-TV18‘s Latha Venkatesh spoke to Lord Adair Turner.
Normally, low oil prices are a boon to the economy and it may lead to tax cut for consumers, etc. But there are a few upsetting factors this time around, said Antonie Hallf, head-oil industry at IEA.
The BOJ`s commitment to pull the country out of two decades of deflation remains "unshakable", according to the minutes from its policy meeting on October 31, when the central bank expanded its asset purchase program by 30 trillion yen to 80 trillion yen.