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Can the Reserve Bank of India rein in food inflation?

The RBI governor has reiterated his commitment to bring down food inflation. Economists are questioning whether monetary policy is the right tool to do so

Mumbai, India - September 01, 2021: Hawkers sell fruits and vegetables. (Photo by Vijay Bate/HT Photo) (HT PHOTO)
Published on Aug 13, 2024 08:30 AM IST

Retail inflation in July at five-year low of 3.54%

Food prices, which have been elevated for over a year, rose 5.42% in the month on-year, the lowest since June 2023.

Vegetable prices were still elevated at 6.83%, compared to 29.32% a year ago. (PTI Photo)
Published on Aug 12, 2024 07:02 PM IST

Food concerns in inflation data

The numbers justify the RBI Monetary Policy Committee’s conservatism on interest rates

The MPC has been highlighting the threat of food price pressures spilling over into general prices, which it has underlined, can undo the gains on the inflation management front.(PTI Photo)
Published on Feb 13, 2024 09:40 PM IST
ByHT Editorial

High food prices may be the new normal

The spike in inflation, which will be painful for the poor, is a result of the climate crisis, making it difficult to control through monetary policy

High food inflation is more painful for the poor((REUTERS FILE PHOTO))
Published on Aug 15, 2023 09:15 PM IST
ByHT Editorial

Inflation is dipping, but RBI may not slash rates

Consumer inflation expectations have also declined compared with the recent past. But the central bank will be cautious in letting its guard down too

Inflation in perishables is beginning to inch up from seasonal effects (prices for fruits and vegetables typically rise during the summer months), while high fodder costs are keeping milk inflation elevated. (REUTERS)
Updated on May 18, 2023 09:44 PM IST

Don’t hit pause in the battle to contain inflation

The MPC’s decision to pause the rate hike cycle should not distract it from its objective of restoring price stability in the economy

Achieving the inflation target will require the Reserve Bank of India to focus on exerting downward pressure on domestic inflation, especially now that high core inflation has become entrenched in the system (Sonu Mehta/HT PHOTO)
Updated on Apr 07, 2023 08:59 PM IST
ByRajeswari Sengupta

Assocham suggests tax sops for senior citizens

It said many senior citizens couldn’t get benefit of any robust social security or pension fund investments as they did not exist during their working life and were largely dependent on interest income from fixed deposits.

Assocham in its budget memorandum also suggested against tax deduction at source from payment of interest to senior citizens.(AFP File Photo/ Representive Image)
Updated on Jun 19, 2019 05:13 PM IST
New Delhi | By

Rise in CPI: How it impacts you

According to an SBI note, core CPI will go down and the headline CPI will increase, leading to convergence in coming months.

Price rise in essential goods over a long period hits those in lower income groups the hardest.(HT File Photo/ Representative image)
Updated on Jun 17, 2019 10:43 AM IST
Hindustan Times, Gurugram | By

More India rate cuts could be in store as core inflation eases

India’s headline and core inflation rates are set to converge in the coming months as the economy slows, increasing the chance of more interest rate cuts.

Shaktikanta Das, the RBI’s new governor, voted for a cut despite only weeks earlier acknowledging the challenges posed by the divergent paths taken by core and food inflation.(Ravindra Joshi / HT Photo)
Updated on Feb 13, 2019 11:15 AM IST
Anirban Nag | ByBloomberg

Will be vigilant on inflation, risks to growth, says RBI governor Urjit Patel

“Underlying the MPC decision was the fact that headline inflation has been sharper than anticipated, and has remained above the 4% target for six consecutive months,” Patel said.

The Reserve Bank of India (RBI) Governor Urjit Patel attends a news conference in Mumbai, December 6, 2017. REUTERS/Shailesh Andrade/Files(Reuters File Photo)
Updated on Jun 06, 2018 04:27 PM IST
Hindustan Times, New Delhi | By

Track core inflation to predict RBI’s next move on interest rates

Commentary from members of RBI’s rate-setting panel show they are more focused on core inflation -- the gauge that strips out volatile food and fuel components, than the headline inflation figure.

The RBI, which Bloomberg economists Tom Orlik and Justin Jimenez rate among the top 3 central banks that surprise the most, has a mandate to keep headline inflation around 4% in the medium term.(Aniruddha Chowdhury/Mint)
Updated on Apr 24, 2018 01:34 PM IST
Bloomberg | ByAnirban Nag
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