India's July retail inflation inches-lower to 3.15% | WeForNews | Latest News, Blogs India’s July retail inflation inches-lower to 3.15% – WeForNews | Latest News, Blogs
Connect with us

Business

India’s July retail inflation inches-lower to 3.15%

Published

on

Inflation

New Delhi, Aug 13 (IANS) Retail inflation in July softened a bit to 3.15 per cent from 3.18 per cent in June, and 4.17 per cent year ago on lower fuel prices.

According to the National Statistical Office (NSO) data, the consumer food price index (CFPI) increased 2.36 per cent in July against 2.25 per cent in June and 1.30 per cent in July 2018.

Among the non-food categories, the fuel and light segment’s inflation declined year-on-year to (-) 0.36 per cent in July.

Prices of vegetables, eggs, meat and fish pushed the retail inflation up year-on-year. Vegetables’ prices increased 2.82 per cent, meat and fish 9.05 per cent, eggs 0.57 per cent and pulses and its products 6.82 per cent.

However, at (-) 2.11 per cent decline in prices of ‘sugar and confectionery’ capped the food inflation.

Prices of milk-based products rose 0.98 per cent, cereals and its products 1.31 per cent. The food and beverages sub-category recorded 2.33 per cent rise in the month over July 2018.

The marginal dip in the CPI inflation in July was led by fuel and light, which recorded a disinflation, even as food and core inflation inched up, said Icra’s Principal Economist Aditi Nayar.

“The incoming trends in food prices need to be cautiously watched following the recent flood in some states, rising vegetable prices and continued lag in kharif sowing. Moreover, unfavourable base effect is likely to contribute to hardening of food inflation in the ongoing quarter,” Nayar said.

“At present, we expect the CPI inflation to inch up in the next two months, while remaining below the MPC target of 4 per cent in Q2FY20. The CPI inflation trajectory may allow for a 15 bps rate cut in October, after monsoon related uncertainties get resolved, especially if crude oil and other commodity prices remain relatively soft,” Nayar said.

According to Madhavi Arora, Economist, Edelweiss Securities, “The uptick in July was backed by sequential uptick in food components, led by fruits and vegetable. The core inflation also increased sequentially after contracting the previous month, led by education and housing.”

“We think the food inflation seasonal uptrend will likely continue in the near-term, especially with uneven monsoon and possible flood disruption.”

Joseph Thomas, Emkay Wealth Management head of research, said, “Retail inflation remains subdued with most components indicating not much variation compared with the earlier periods.”

“But we need to make allowance for factors, like cheaper rupee, loss of crops due to rains and the consequent effects on prices, while trying to judge the future inflation,” Thomas said.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

seventeen − eight =

Business

Cartelisation? Airtel, Vodafone issue similar tariff hike statements

Airtel and Vodafone Idea had posted a combined loss of Rs 74,000 crore in Q2 following provisioning for the AGR pending dues. Vodafone has hinted at not being able to remain as a going concern if relief does not come for the sector.

Published

on

By

Mobile Subsriber

New Delhi, Nov 18 : The ongoing telecom crisis is set to hit the customers hard with two of the country’s largest telcos — Bharti Airtel and Vodafone — deciding to hike tariffs from December 1 after they posted historic losses on account of provisioning for the AGR pending dues.

In what smacks of cartelisation shaping up in the sector, Bharti Airtel and Vodafone Idea on Monday came out with strikingly similar statements to announce the tariff hike decision. Both companies also announced the tariff hike within a few minutes of each other and both did not reveal the quantum of hike.

“The telecom sector is highly capital intensive with fast changing technology cycles that require continuing investments. It is, therefore, extremely important that the industry remains viable to support the vision of Digital India,” Bharti Airtel said in a statement.

“Accordingly, Airtel will appropriately increase price offerings in the month beginning December,” it added.

Vodafone had also noted that the acute financial stress in the telecom sector has been acknowledged by all stakeholders and a high-level committee of secretaries (CoS) headed by the Cabinet Secretary is looking into providing appropriate relief. It had said it would “suitably increase the prices of its tariffs” effective from December 1.

The quantum of losses incurred by the two telcos have made their operations unsustainable. In fact, Vodafone has hinted at not being able to remain as a going concern if relief does not come for the sector.

In such a scenario, tariff hike has not only become inevitable but a must survival strategy. The two of the hardest hit telcos coming together to announce similar measures seems to be a building up of a strategy where the players would like to explore synergies that could reduce their burden. However, both companies have so far not indicated such a possibility.

Airtel and Vodafone Idea had posted a combined loss of Rs 74,000 crore in Q2 following provisioning for the AGR pending dues. Vodafone has hinted at not being able to remain as a going concern if relief does not come for the sector.

Continue Reading

Business

After Vodafone Idea, Airtel to hike tariff

Published

on

By

airtel

New Delhi, Nov 18 (IANS) The ongoing telecom crisis is set to hit the customers hard with two of the country’s largest telcos — Bharti Airtel and Vodafone — deciding to hike tariffs from December 1 after they posted historic losses on account of provisioning for the AGR pending dues.

Both the players, however, did not announce the quantum of hike that is expected to be worked out between now and December 1.

“The telecom sector is highly capital intensive with fast changing technology cycles that require continuing investments. It is, therefore, extremely important that the industry remains viable to support the vision of Digital India,” Bharti Airtel said in a statement.

“Accordingly, Airtel will appropriately increase price offerings in the month beginning December,” it added.

Vodafone had also noted that the acute financial stress in the telecom sector has been acknowledged by all stakeholders and a high-level committee of secretaries (CoS) headed by the Cabinet Secretary is looking into providing appropriate relief.

Vodafone Idea Ltd had said that it would “suitably increase the prices of its tariffs” effective from December 1.

Airtel and Vodafone Idea had posted a combined loss of Rs 74,000 crore in Q2 by provisioning for the AGR pending dues. Vodafone has hinted at not being able to remain as a going concern if relief does not come for the sector.

Continue Reading

Business

Musk plans $4.4 billion Tesla plant in Berlin

“Everyone knows that German engineering is outstanding and that’s part of the reason we’re locating our gigafactory Europe in Germany,”

Published

on

By

Tesla CEO Elon Musk

Berlin, Nov 18 : After Shanghai in China, Elon Musk has chosen Berlin as Tesla’s next gigafactory outside the US where the company is planning to invest 4 billion euros ($4.4 billion) and produce 150,000 cars a year.

The Berlin unit will manufacture SUV Model Y, which could go into production by 2021. The unit could initially employ 3,000 people. The headcount could rise to 7,000, Express.co.uk reported on Sunday.

“Everyone knows that German engineering is outstanding and that’s part of the reason we’re locating our gigafactory Europe in Germany,” Musk said last week.

Recently, Tesla unveiled its first Model 3 made in Shanghai. Tesla Shanghai gigafactory is first wholly-owned foreign auto factory in China.

Tesla is expected to focus on Model 3 production at Shanghai factory, where it plans to produce as many as 3,000 vehicles per week by next year.

Last month, the automaker confirmed production of complete vehicles at Gigafactory Shanghai as part of trial production.

“We are producing full vehicles on a trial basis, from body, to paint and to general assembly, at Gigafactory Shanghai. We have cleared initial milestones toward our manufacturing licence and are working towards finalising the licence and meeting other governmental requirements before we begin ramping production and delivery of vehicles from Shanghai,” the company said.

Additionally, Musk recently announced that he would unveil Tesla electric pickup truck dubbed as ‘Cybertruck’ on November 21 at an event in Los Angeles.

Continue Reading
Advertisement

Most Popular