Issues are more likely to worsen for India amid commodity-supply disruptions attributable to Russia’s battle in Ukraine.
India’s headline inflation surged to an eight-month excessive in February on increased meals costs, with the outlook set to worsen amid commodity-supply disruptions attributable to Russia’s battle in Ukraine.
Shopper costs rose 6.1% final month from a yr earlier, the Statistics Ministry mentioned in an announcement Monday. That’s sooner than the median estimate for a 6% acquire seen in a Bloomberg survey of economists and properly above the higher finish of the Reserve Financial institution of India’s inflation goal band.
The war-fueled uncertainty is more likely to drive the central financial institution to revisit its inflation and development forecasts at its coverage assembly subsequent month. Though, it’s unlikely to drive the RBI to tighten rates of interest simply but, given coverage makers’ are intent on supporting the financial system’s sturdy restoration.
Digging Deeper
- Rising prices of meals and clothes and footwear contributed to the worth development final month, information confirmed. Meals costs jumped 5.9%, clothes and footwear costs gained 8.9% and housing costs climbed 3.6%. Gasoline and electrical energy costs rose 8.7%, slower than the 9.3% tempo seen in January
- Pump costs have been frozen for greater than 4 months coinciding with elections in some key Indian states. That might change if gasoline retailers begin passing on increased crude costs attributable to Russia’s battle
- Rising costs might weigh on consumption amid excessive frequency indicators pointing to dangers for the world’s fastest-growing main financial system
- Amid excessive enter prices and provide shortages, wholesale inflation quickened to 13.1% in February, information launched individually confirmed Monday.
(Updates with particulars of inflation print below ‘Digging Deeper’ part)
–With help from Tomoko Sato.
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