Inflation likely accelerated to a six-month high in December

Central Bank of Romania to step up rate hikes to tame prices

Estimates ranged between 4.70% and 6.30%, including seven respondents who predicted it would be above the RBI’s upper tolerance limit of 6.0%. The report is due to be released on Wednesday at 1200 GMT.

Higher telecommunications charges, alongside a relatively low base one year prior, reasonable drove Indian retail inflation to a six-month high in December, a Reuters survey found, saving alive assumptions for an interest rate ascend by mid-year. The January 4-7 review of 41 economists showed Indian retail inflation rose to 5.80% last month from 4.91% in November, going through over two years over the Reserve Bank of India’s medium-term target of 4.0%. Whenever acknowledged, it would be the most noteworthy since June 2021.

“Headline inflation is likely to shoot back up to the upper end of the target range, as rising telecom tariffs and high energy costs set the stage for a potential tightening of monetary policy,” said Rahul Bajoria, chief India economist at Barclays.

“However, moderating food prices should keep expectations in check.”

The RBI left its repo rate unchanged at 4.0% for a ninth consecutive policy meeting last month, sticking to its focus on economic growth as India still faces challenges from the coronavirus pandemic.

“Now, the RBI will have to address inflation. The core inflation remains very sticky and elevated and it will have to be cognizant about that,” said Upasna Bhardwaj, senior economist at Kotak Mahindra Bank.

A separate Reuters survey forecast the RBI to raise the repo rate to 4.25% some time in the April to June period.

The latest poll also showed industrial output expanded 3.0% in November from a year ago, compared with 3.2% in October. Infrastructure output – made up of eight main industries and accounting for about 40% of total factory production – slowed to 3.1% year-on-year in November.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Electrolux files $85 million fee related to fourth-quarter tariff case
Electrolux files $85 million fee related to fourth-quarter tariff case
Electrolux will charge $85 million to profit in the final quarter after an appeals panel upheld a U.S. Department of Commerce choice in regards to duties ...
Crypto leads to massive increase in online scams
Crypto leads to massive increase in online scams
Last year, more than 95,000 people reported losing around $770 million to fraud schemes on social media. The big picture: Fraud cases from social media now ...
What if Jay Powell is wrong again?  US Fed Decision |  What if Jay Powell is wrong again?
What if Jay Powell is wrong again? US Fed Decision | What if Jay Powell is wrong again?
Subsequent interest rate increases and an eventual reduction in the Fed’s asset holdings would follow as needed, Powell said, while officials monitor how ...
Kissht raises Rs 100 cr in funding led by Trifecta Capital, Northern Arc
Kissht raises Rs 100 cr in funding led by Trifecta Capital, Northern Arc
The company will utilise the funds to expand its scale of operations, enhance its product offerings including credit cards for small business/shops and ...
Hospitalizations for COVID-19 hit another high in Thursday’s DHHR report
Hospitalizations for COVID-19 hit another high in Thursday’s DHHR report
Thirty-nine of the state’s 55 counties are red on the COVID-19 county alert, meaning the highest transmission rate. That is down from 49 on Monday. “If you are ...
US consumer protection agency adds stress on banks over fees
US consumer protection agency adds stress on banks over fees
Under its new director, Rohit Chopra, who took up his position last October, the CFPB is targeting bank fees that are particularly unpopular with consumers, ...
Wealthsimple Founder Says Canada Should 'Plant a Flag' on Cryptocurrencies
Wealthsimple Founder Says Canada Should ‘Plant a Flag’ on Cryptocurrencies
“The smartest people in technology and the smartest engineers are flocking to build applications in this space, which is generally the thing that we see at ...
Abhishek Lodha says: Lesser impact of new wave of Covid-19 on sales
Abhishek Lodha says: Lesser impact of new wave of Covid-19 on sales
Continuing with its asset-light model, Lodha said the company has entered into 11 joint development agreements (JDAs), worth Rs 14,500 crore sales value ...
US consumer protection agency adds stress on banks over fees
Now or never? European banks watch the comeback against Wall Street
“The need is becoming much more urgent for European banks to show what they truly stand for and how they’re going to differentiate themselves to create an ...
COVID UPDATE: CT positivity rate is 9.73% |  Connecticut News
COVID UPDATE: CT positivity rate is 9.73% | Connecticut News
On Thursday, 693,386 COVID-19 cases have been reported since the beginning of the pandemic, which is up 3,036 since Wednesday. Officials say 31,201 tests were ...
Show next
We will be happy to hear your thoughts

Leave a reply

Compsmag - Latest News In Tech and Business
Logo