Arab Today, arab today india’s headline inflation edges up
Last Updated : GMT 16:08:40
Arab Today, arab today
Arab Today, arab today

India’s headline inflation edges up

Arab Today, arab today

Arab Today, arab today India’s headline inflation edges up

New Delhi - Arabstoday

India’s headline inflation picked up for the first time in five months on higher food prices, giving the central bank a reason to hold off on a much-awaited interest rate cut when it reviews its policy on Thursday. The wholesale price index, India’s main gauge of inflation, edged up 6.95 per cent in February from a year earlier. Wednesday’s data, released by the government, was higher than the 6.79 per cent average forecast in a Reuters poll, after a provisional rise of 6.55 per cent in January. The Reserve Bank of India (RBI) meets on Thursday to review its policy, where it is widely expected to leave its main lending rate steady at a 3-year high of 8.5 per cent. However, weakening economic momentum as well as a softer policy stance adopted by central banks in the region is piling pressure on Governor D Subbarao to start cutting rates sooner than later. “I think the big risk going forward for inflation will be driven by the revision in the domestic fuel prices, and we do expect inflation to sustain around 7 per cent until March,” said Abheek Barua, chief economist at HDFC Bank in New Delhi. “The broad balance is in favour of a rate cut, but I would think the Reserve Bank of India would wait until it gets a firm fix on the contours of the budget (on March 16).” India’s economic growth faltered to a three-year low of 6.1 per cent in the quarter ended December as a political logjam and the central bank’s hawkish policy against inflation hit investment. The pace of economic expansion this fiscal year is forecast to dip below 7 per cent for the first time in three years. Most economists expect interest rate cuts to begin in April-June quarter, but the central bank’s surprise move last week to cut the cash reserve requirements for banks has increased the odds for a rate cut on Thursday. Federal bond yields and swap rates remained unchanged after the February inflation data. Annual food prices in February rose 6.07 per cent after falling  0.52 per cent a month ago, as prices of vegetables spiked. Manufacturing inflation -a barometer for demand-driven price pressures -eased to 5.75 per cent from 6.49 per cent in January. Fuel prices rose 12.83 per cent from a year earlier, lower than an annual rise of 14.21 per cent in January. Fuel inflation has been largely steady despite an upswing in global crude prices, as political considerations have forced the government to delay an adjustment in petroleum prices, forcing state-owned oil refiners to take on the brunt of higher prices. But with the government facing an arduous task of trimming its fiscal gap, it will be difficult for New Delhi to defer a decision aligning pump rates with global oil prices for long.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today india’s headline inflation edges up Arab Today, arab today india’s headline inflation edges up

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today india’s headline inflation edges up Arab Today, arab today india’s headline inflation edges up

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Girl barred from Malaysia chess competition

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday