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#CPI #inflation drops to 6.93pc year-on-year, beating all expectations. Five major factors can explain this very steep fall; 1. Higher base (last year's inflation and absolute prices)  2. Significant cut in prices 3. Food prices, particularly after crash of wheat market  4. Stable ruppee. This is most critical factor shaping steep decline as it lead to passing 1-1 effect of 1-3 above.  5. 500 bps cut in policy rate (circular effect, you may call)

Inflation update from the Producer Price Index in which prices for services are finally beginning to fall, while those for goods rebounded: > The Producer Price Index for final demand increased 0.1% in July after rising 0.2% in June and flat in May, and was up 2.2% year-over-year. > The July rise in the index for final demand can be attributed to prices for final demand goods, which moved up 0.6% (the first increase since April). In contrast, the index for final demand services fell 0.2% (the first monthly decline this year). > Prices for final demand less foods, energy, and trade services advanced 0.3% in July after increasing 0.1% in June, and were up 3.3% year-over-year. We'll get another inflation update from the Consumer Price Index tomorrow, and it will be interesting to see if there's a split between goods and services. Link to report in comments. #producerpriceindex #ppi #inflation #finaldemand #fed #interestrates #prices #wages #economy

While Inflation might come across as a generic term, did you know it has different types?   Here's a quick sneak peek into the broader types of Inflation:   💡𝐃𝐞𝐦𝐚𝐧𝐝 𝐏𝐮𝐥𝐥 𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 - occurs when the aggregate demand in an economy exceeds the aggregate supply   💡𝐂𝐨𝐬𝐭-𝐏𝐮𝐬𝐡 𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 - occurs when overall prices rise (inflation) due to increases in production costs such as wages and raw materials. For instance, recently, companies making cookies and cakes saw a rise in cocoa, sugar, and flour prices, leading to cost-push inflation for these items   💡𝐎𝐩𝐞𝐧 𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 - when prices rise in an open market, i.e., a market where there is no control on prices by the government or any authority   💡𝐑𝐞𝐩𝐫𝐞𝐬𝐬𝐞𝐝 𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 - A situation in which price and wage increases are restrained by official controls. This can lead to a rise in inflation when the controls are relaxed unless policies to remove the excess demand are adopted   💡𝐇𝐲𝐩𝐞𝐫𝐢𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 - rapid, excessive, and out-of-control general price increases that result in extreme inflation. It quickly erodes the real value of the local currency, as the prices of all goods increase   💡𝐂𝐫𝐞𝐞𝐩𝐢𝐧𝐠 𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 - the price level increases very slowly over an extended period   💡𝐌𝐨𝐝𝐞𝐫𝐚𝐭𝐞 𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 - the rise in the price level is neither too fast nor too slow    💡𝐆𝐚𝐥𝐥𝐨𝐩𝐢𝐧𝐠 𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 - occurs at a quick rate (dual or triple-digit annual rates) for a short period. This could happen during an economic crisis that can cause shortages of basic food supplies   #inflation #types LinkedIn

INFLATION * Food inflation remains elevated * Deflation in fuel prices is ongoing * MPC took note of disinflation that didn't hurt growth * Policy must remain disinflationary * Remain vigilant to outside risks on inflation * RBI sees FY25 CPI inflation 4.5% vs 4.5% earlier * Apr-Jun CPI inflation seen 4.9% vs 4.9% earlier * Jul-Sep CPI inflation seen 3.8% vs 3.8% earlier * Oct-Dec CPI inflation seen 4.6% vs 4.6% earlier * Jan-Mar CPI inflation seen 4.5% vs 4.5% earlier * Monetary policy has played role in CPI moderation process * Repeated food price shocks slowed overall disinflation * Jul-Sep inflation decline seen one-off * Jul-Sep inflation decline on favourable base effect * Need inflation to fall to 4% on durable basis * Uncertainties on food price outlook need close monitoring * Monitoring spillover risks of food prices to headline CPI * Behaviour of core inflation needs to be watched * Sustained price stability will set foundation for high growth * Food inflation can derail path to disinflation * Stance to anchor inflation expectation * Central banks remain steadfast in fight against inflation * Central bks remain data dependent in fight against inflation * Discretionary spending rising in urban areas * Food prices offset core inflation, fuel price deflation * CPI headline inflation softened during Mar, Apr * Disinflationary trend in fuel driven by LPG price cuts * Services inflation moderated to historic low * Vegetable prices seeing uptick * Rabi arrivals of pulses need to be carefully monitored * If commodity trends sustain, could increase agri input cost * Exceptionally hot summer may pressure summer crops * Low reservoir levels may pressure summer crops * Outlook on crude remains uncertain on geopolitics * Rise in metal prices could lead to higher input cost prices * Outlook on crude uncertain due to geopolitical tensions  

Core Measures of inflation are strong indicators of the overall inflation trend, as they exclude more volatile food and energy prices. This chart tracks the year-over-year changes in the Consumer Price Index (CPI) and the Consumer Price Index, excluding food and energy prices (Core CPI). #Inflation, #Economic Trends

Navigating Economic Crossroads: CPI Trends, Industrial Output, and Their Drivers   CPI stayed at 5.1% in February. The core inflation reached a 52-month low of 3.4%. Conversely, food inflation accelerated to 8.7% in January. Concurrently, IIP decreased to 3.8% year-on-year in January, attributed to mixed performance across consumption and industrial sectors. Delve into their implications on the overall GDP growth for fiscal 2025 in the #latest #CRISILPerspective.

Investors should pay close attention to another gauge of U.S. inflation this Thursday: the producer price index (PPI) for February. This release is particularly significant following Tuesday’s unexpectedly high consumer price index (CPI) report, which has raised concerns about the possibility of a rate cut by the Federal Reserve in June. The PPI provides insights into inflation from the perspective of product manufacturers and service suppliers. It is widely regarded as a leading indicator for the more commonly tracked CPI. For February, the PPI is anticipated to increase by 0.3% on a monthly basis, resulting in an annual rise of 1.1%. However, the core annual figure, which excludes volatile food and energy prices, is expected to decline to 1.9%, down from the 2.0% recorded in the previous month. In contrast, the consumer price index rose by 0.4% last month (following a 0.3% increase in January). Annually, the CPI saw a 3.2% uptick, compared to the 3.1% growth observed in January. These inflationary trends suggest some persistence, which could pose challenges for the Federal Reserve ahead of their upcoming meeting next week. It is widely anticipated that the Fed will maintain interest rates unchanged as officials carefully analyze all available economic data

Consumer Price Index (CPI) Update: - Food CPI: 10.87% - Overall CPI: 6.21% Additionally, industrial output grew by 3.1% in September after a dip in August. Key Factors Driving Food Price Increases: - Weather fluctuations: Irregular monsoons and extreme weather are impacting crop yields. - Storage and transport issues: Limited storage facilities and inefficient logistics add to costs. - Market inefficiencies: Inadequate pricing mechanisms can lead to volatility. - Supply chain disruptions: Transportation bottlenecks are further driving up prices. Understanding these factors is essential as they affect both economic planning and household budgets. . . . #Inflation #CPI #IndiaEconomy #FoodPrices #SupplyChain #MarketVolatility #EconomicGrowth #IndustrialOutput #MonsoonImpact #PriceHike #EconomicPlanning #HouseholdBudgets #LogisticsChallenges

Higher prices at the gas pump pushed up inflation more than expected in February, according to Consumer Price Index data from the Bureau of Labor Statistics released yesterday. However, inflation did slow in other key areas like food and housing, fueling a touch of positive news for consumers, and the Federal Reserve. Read more... #Inflation #CPI #ConsumerPriceIndex #FebruaryCPI #FinanceNews #BautisFinancial

Inflation update showing stubborn increases for services: < The Fed-preferred PCE price index for March increased 0.3% (the same as in February) and was up 2.7% year-on-year (up from 2.5% in February). < Prices for services increased 0.4% in March (and up 4.0% year-on-year) and prices for goods increased 0.1% (and up 0.1% year-on-year). Food prices decreased less than 0.1% (up 1.5% year-on-year) and energy prices increased 1.2% (up 2.6% year-on-year). < Excluding food and energy, the PCE price index increased 0.3% (the same as in February) and was up 2.8% year-on-year (also the same as in February). Link to report in comments. #pcedeflator #pcepriceindex #inflation #economy #services #goods #foodprices #energyprices #fed #interestrates