ibusinesslines.com
ibusinesslines.com May 22, 2018


RAM Ratings sees higher inflation of 1.6% in March

17 April 2018, 12:33 | Kelvin Horton

A man working in warehouse

Wholesale Inflation stands at 2.47% in March manufacturing index rises

It may be recalled that WPI inflation was at 5.11 per cent in March past year.

Index for "Crude Petroleum & Natural Gas" group declined by 0.5 percent to 80.2 (provisional) from 80.6 (provisional) for the previous month due to lower price of crude petroleum (1%).

Inflation in onion continued to remain high at 42.22 per cent and in potato at 43.25 per cent.

"Moreover, while average petrol prices at the pumps dropped 1.4 per cent between February and March this year, that was only a touch bigger than the 0.8 per cent drop seen between the same months in 2017".

Sunil Sinha, Principal Economist, India Ratings & Research, said inflation in the food article category - which has been declining since November 2017- turned into deflation in March 2018.

Prices of the other major group under the WPI, manufactured products, which comprise almost 64.23 per cent of the index, recorded a 3.03 per cent rise.

Despite keeping rates on hold, the committee said that "ongoing tightening of monetary policy" would be needed to bring inflation back to the Bank's 2 per cent target.

The build up in inflation rate in the financial year so far was 2.47% compared to a build up rate of 5.11% in the corresponding period of the previous year.


The index for "food articles" group declined by 0.4 per cent to 137.2 from 137.8 for the previous month, despite a price rise in items like ragi, jowar, peas/chawali, moong and paddy, among others.

The median forecast for Brazil's consumer price inflation in the next 12 months increased to 4.02%, from 4.00 last week, according to economists surveyed by the South American country's central bank.

"A significant decline in the inflation of food articles including cereals and pulses is an indicator that the government has rightly focused agriculture sector", Anil Khaitan, President, PHD Chamber was quoted as saying in a statement.

"However, there are some noticeable changes at the disaggregate level".

As per the official government data released Monday, food articles showed deflation at 0.29 per cent in March as against a 0.88 per cent inflation in the preceding month.

However, it noted that some of this upward pressure will be offset by a negative growth contribution from transport fuel amid lower retail fuel prices which fell 4.4% year-on-year.

The reproduction of the story/photograph in any form will be liable for legal action.



Other News

Trending Now

How Jurgen Klopp kept Liverpool focussed for Bournemouth match
The benchmark for Liverpool performances was set 30 years ago. But Klopp warned: 'I don't just want to be the entertainer. His boss, Jurgen Klopp , praised Salah's achievement.

How to watch the Boston Marathon
Swiss Marcel Hug won his fourth consecutive wheelchair division, clocking 1:46:26 to beat South African Ernst Van Dyk (1:47:14). The 122nd Boston Marathon takes place today five years after bombs were set off at the finish line of the race.

U.S. pastor denies allegations of coup links as Turkey trial begins
His wife was in the courtroom, as were North Carolina Senator Thom Tillis and the USA envoy for religious freedom, Sam Brownback. Mr Brunson, who ran a Protestant church in the Turkish city of Izmir, was arrested in October 2016.

Messaging App 'Telegram' Has Been Banned In Russia
Roskomnadzor intends to take measures to lock tools to use is prohibited on the territory of the Russian Telegram messenger. Telegram is used by more than 200m users across the world, and prides itself on its high level of security.

Celtic have a shot at historic double-treble, Gordon says
In the first half we played well, scored two very good goals and had good composure. "I never become complacent", he said. We didn't put them under enough pressure and allowed them to play through us too easily.

Bank of America soars to record profit after tax overhaul
Personal Capital Advisors Corp purchased a new position in Bank of America during the third quarter worth approximately $311,000. Ctc Llc who had been investing in Netflix Inc for a number of months, seems to be bullish on the $135.24B market cap company.

'Mass casualty incident' reported at SC maximum security prison
Last month, inmates reportedly overpowered an officer for more than an hour and took control of one side of a housing unit. At least seven inmates were killed and 17 injured when a prison melee broke out at a SC prison, officials said.