Name: Retail inflation likely to fall to 5% by March: SBI Report
Uploaded: 2023-01-16T14:53:40.000+05:30
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Description: Inflation is finally easing, after 3 quarters of inflation being above 6%. An SBI report says that retail inflation will fall to 5% by March.

The latest three-quarter percentage point increase takes the benchmark lending rate to 3.75-4.0 percent, the highest since January 2008

Fed delivers another steep rate hike with more to come

Another rate hike is here; Fed hikes interest rates 75 basis points

Fed delivers big rate hike

The latest three-quarter percentage point increase takes the benchmark lending rate to 3.75-4.0 percent, the highest since January 2008

In yet another decision, the US Federal Reserve delivered their fourth straight 75 basis-point interest rate with its move to cool red-hot inflation.
The unanimous decision lifts the target for the benchmark federal funds rate to a range of 3.75% to 4%, its highest level since 2008.
The policy-setting Federal Open Market Committee (FOMC) said more increases will be needed to tamp down rising prices but it will consider the impact on the economy when deciding on the pace of future moves -- opening the door to the possibility it will implement smaller steps in coming months.
Powell further said that the committee could begin discussing the possibility of slowing the aggressive pace of rate increases at the December meeting.

RBI keeping ‘Arjun’s eye’ on inflation; E-rupee for retail launch in Nov says Guv Shaktikanta Das 

RBI keeping ‘Arjun’s eye’ on inflation

RBI keeping &lsquo;Arjun&rsquo;s eye&rsquo; on inflation; E-rupee for retail launch in Nov says Guv Shaktikanta Das&nbsp;

Analysts warn that the economy could enter a recession in 2023 on the effects of the Fed's rate hikes, inflation and a global slowdown in growth
 

US Fed set for further steep rate hike as recession fears loom?

Analysts warn that the economy could enter a recession in 2023 on the effects of the Fed's rate hikes, inflation and a global slowdown in growth
&nbsp;

The US Federal Reserve is pegged to make a fourth straight steep hike in the key interest rate this week as it battles surging costs, with its aggressive stance fueling expectations of a recession.
American households have been squeezed by soaring consumer prices, propelling economic issues to the top spot among voter concerns in upcoming midterm elections. Fed officials walk a tightrope to try and rein in prices while avoiding a downturn.
To raise borrowing costs and cool demand, the US central bank has already cranked up the benchmark lending rate five times this year, including three straight 0.75 percentage point raises.
But with persistently high inflation and a tight labor market supporting wages and spending, analysts say another 0.75 point hike is almost certain at central bankers' next policy meeting.
Further Fed hikes are also expected to dampen consumer and business spending, making it more attractive to save rather than spend.
Analysts warn that the economy could enter a recession in 2023 on the effects of the Fed's rate hikes, inflation and a global slowdown in growth.

RBI has been aggressively raising the key interest rate since May in a bid to contain inflation. It has so far raised the short term lending rate by 190 basis points taking the rate to a nearly three-year high of 5.9 per cent

RBI's MPC to discuss inflation report on Nov 3

RBI has been aggressively raising the key interest rate since May in a bid to contain inflation. It has so far raised the short term lending rate by 190 basis points taking the rate to a nearly three-year high of 5.9 per cent

In order to keep retail inflation below the target, the Reserve Bank will hold a special meeting of its rate-setting committee on November 3.
According to reports, RBI is going to prepare a report for the government on why it failed to keep retail inflation below the target of 6 per cent for three consecutive quarters since January.
The six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das will prepare the report on reasons for failure to meet the inflation target as well as the remedial measures the central bank is taking to bring down prices in the country.
"Under the provisions of Section 45ZN of the Reserve Bank of India (RBI) Act 1934... an additional meeting of the MPC is being scheduled on November 3, 2022," RBI said in a statement. RBI has been aggressively raising the key interest rate since May in a bid to contain inflation. It has so far raised the short term lending rate by 190 basis points taking the rate to a nearly three-year high of 5.9 per cent.
The next bi-monthly meeting of MPC is is scheduled to be held from December 5-7, 2022.

The Indian aviation sector is recovering after being significantly impacted by the coronavirus pandemic that also saw scheduled international flight services remaining suspended for more than two years starting from March 2020.

Report: Delhi's IGI airport world's tenth busiest post COVID-19

The Indian aviation sector is recovering after being significantly impacted by the coronavirus pandemic that also saw scheduled international flight services remaining suspended for more than two years starting from March 2020.

The Indira Gandhi International Airport in the national capital has emerged as the world's 10th busiest airport in October, improving its ranking compared to the pre-pandemic period.
In its report, aviation analytics firm OAG said Delhi airport has improved its position from 14th place in October 2019, which was the pre-pandemic time. In October 2022, Hartsfield-Jackson Atlanta International Airport was the busiest in the world.
The rankings by OAG are based on scheduled airline capacity in the current month and compared to the equivalent month in 2019, pre-pandemic. The world's top 10 busiest airports list is prepared using total capacity, both domestic and international.
After Atlanta, Dubai and Tokyo Haneda airports are at the 2nd and 3rd positions, respectively.
For the Delhi airport, also known as the Indira Gandhi International Airport (IGIA), the number of seats was 34,13,855, as per OAG.
The Indian aviation sector is recovering after being significantly impacted by the coronavirus pandemic that also saw scheduled international flight services remaining suspended for more than two years starting from March 2020.
At the 6th place is London Heathrow Airport, followed by Chicago O'Hare International Airport at the 7th spot and Los Angeles International Airport is at the 9th position, the OAG report said.
According to the report, Dubai is the busiest international airport, followed by London Heathrow Airport and Amsterdam airport at the 2nd and 3rd positions, respectively.
There is no Indian airport in the top 10 list of busiest international airports.
In another report, OAG said Mumbai to Dubai and Delhi to Dubai were among the top 10 busiest international routes.
The busiest airline routes are those with the largest volume of scheduled seats during the period from October 2021 to September 2022.
Also, the route between Mumbai and New York is among the largest unserved routes, which OAG defines as the routes with the largest volume of people travelling indirectly between two points.
Further, OAG noted that the other New York routes include India's largest city, Mumbai (BOM-JFK) with nearly 82,000 passengers in a 12-month period currently travelling indirectly between these two cities.&nbsp;

India inflation is set to ease: RBI

India inflation is set to ease: RBI

The Reserve Bank of India has said that the fight against inflation in the country will go on for a long time, but the rate of retail inflation will gradually decrease in the coming days.&nbsp;
In its Monthly Bulletin, the central bank noted that the effect of the measures taken under the monetary policy is visible in the long run and in different ways.&nbsp;
In an article titled State of the Economy, the RBI said that the trend of relief in inflation rate can be first seen in the prices of food items.
The RBI noted that 'aggressive and synchronised monetary tightening has further weakened global economic prospects as financial markets sold off, investors took fright and jettisoned risky assets.'

As rupee plunges, Finance minister Nirmala Sitharaman explains the cause

Responding to another question on the sliding of Indian rupees, she said it is because of the strengthening dollar.

Finance Minister Nirmala Sitharaman has said that the Indian rupee is holding ground at a time when dollar has strengthened, asserting that the fundamentals of India's economy is strong and the inflation is low compared to other parts of the world.
Speaking to reporters on Saturday after concluding her trip to the city where she attended the annual meetings of the International Monetary Fund and the World Bank, Sitharaman also said that the inflation is at a manageable level.
&ldquo;The fundamentals of the Indian economy are good, macroeconomic fundamentals are good. The foreign exchange reserve is good. This is what I keep repeating that inflation is also at a manageable level,&rdquo; Sitharaman said.
Also Watch| <a href="https://www.editorji.com/india-news/sitharaman-indian-economy-will-stay-on-course-despite-global-headwinds-1665814034612">Sitharaman: Indian economy will stay on course despite global headwinds</a>
Responding to questions, Sitharaman, who also held 24 bilateral and about a dozen multilateral meetings on the sidelines of the IMF and the World Bank meetings, said that she would love to bring the inflation further below six per cent, and the government is making efforts for it.
Referring to the fact that several countries in the world like Turkey are facing double digit inflation, she said countries are being very severely impacted through external factors.
&ldquo;We are also being impacted through external factors. We are also being impacted. But because of the various measures we're taking timely each time we are able to bring it to this level at least hold it. Ideally at this time to bring it to four will be just very good, but we're trying,&rdquo; she said.
&ldquo;So, we have to be conscious of the position that we are in compared to the rest of the world. I'm not asking for celebration but it is true that we are holding together. And I'm very conscious particularly of the fiscal deficit,&rdquo; Sitharaman said.
Responding to another question on the sliding of Indian rupees, she said it is because of the strengthening dollar.

Gujarat's GIFT City will get 200 tonnes of gold imported from the UAE which will then be distributed to other parts of the country. UAE is currently India's third-largest trading partner and the second-largest export destination, after the US

Gujarat's GIFT city to get gold imports from UAE

Gujarat's GIFT City will get 200 tonnes of gold imported from the UAE which will then be distributed to other parts of the country. UAE is currently India's third-largest trading partner and the second-largest export destination, after the US

GIFT City will be nominated as an agency to import 200 tonnes of gold from the United Arab Emirates under the recently signed Free Trade Agreement said Piyush Goyal, Union Minister of Commerce and Industry, during his visit to Gujarat Saturday.
&ldquo;I have take a decision which profits GIFT City and its expansion. Recently, we signed an FTA with the UAE. This agreement has come into force from May 1 under which almost 100 per cent of items exported to the UAE will go as duty-free. We have also allowed some items to be imported from the UAE with lesser duty. In order to encourage our gem and jewellery sector, 200 tonnes of gold will be brought at discounted rates to India. We will nominate GIFT City as the agency to import the gold,&rdquo; said Goyal during his interaction with media persons at iHub, a student startup and innovation hub in Ahmedabad.
Goyal who had visited GIFT City at Gandhinagar and interacted with officials on Saturday morning said the imported gold will be distributed from GIFT City to other parts of the country.
Also watch: <a href="https://www.editorji.com/india-news/politics/here-s-what-congress-leader-digvijay-singh-said-after-dropping-out-of-the-party-leadership-race-1664520101643">Here's what Congress leader Digvijaya Singh said after dropping out of the party leadership race</a>
&ldquo;This solves a big problem of middlemen faced by the gem and jewellery sector. Due to these middlemen, gold purchases used to be expensive. With today&rsquo;s decision, we have solved their problem too,&rdquo; he added.
Piyush Goyal reviewed the functioning of the GIFT special economic zone on Monday.&nbsp;
Gujarat International Finance Tech-city special economic zone is India's first International Financial Services Centre (IFSC). It is being developed as a global financial services hub.
It was operationalised by the central government in April 2015. "Held a fruitful interaction with industry representatives at GIFT City. Discussed benefits of setting up units here," Goyal said in a tweet.
The minister also held interactions at the International Bullion Exchange (IIBX) in GIFT City to understand issues with respect to trading of gold; operationalising the gold spot exchange and reducing the cost of gold metal loans for jewellery exporters through the GIFT IFSC.
"Urged representatives of Jewellery sector to discover competitive prices for gold through IIBX," he said.
The minister issued directions to improve the trading of gold on the IIBX, including enabling the utilisation of the TRQ (Tariff Rate Quota) on gold obtained in the trade pact with the UAE.&nbsp;

India's economy to grow despite world is ‘dangerous’:  Amidst reports of a global recession and downgrading of growth rates of almost all major economies, Finance Minister Nirmala Sitharaman.

India's economy to grow despite world is ‘dangerous’: FM Sitharaman 

The minister, however, observed that the Indian economy is not exempt from the impact of swirling global currents

India's economy to grow despite world is &lsquo;dangerous&rsquo;:&nbsp; Amidst reports of a global recession and downgrading of growth rates of almost all major economies, Finance Minister Nirmala Sitharaman exuded confidence on India's relative and absolute growth performance in the rest of the decade and forecast the country's growth rate to be around 7 per cent this financial year.
The minister, however, observed that the Indian economy is not exempt from the impact of swirling global currents.&nbsp;
&ldquo;After the unprecedented shock of the pandemic, came the conflict in Europe with its implications for energy, fertiliser and food prices. Now, synchronised global monetary policy is tightening in its wake. So, naturally, growth projections have been revised lower for many countries, including India. This triple shock has made growth and inflation a double-edged sword,&rdquo; Sitharaman said.
After the conflict started in February 2022, there was a sharp increase in food and energy prices. India had to ensure that the rising cost of living did not lead to lower consumption through erosion of purchasing power.
<a href="https://www.editorji.com/business-news/economy/why-is-p-chidambaram-asking-fm-sitharaman-to-take-up-astrology-1657776179722">Nirmala Sitharaman</a> is on her 6-day visit to the US from October 11-16, the minister would meet US Treasury Secretary Janet Yellen and <a href="https://www.editorji.com/business-news/the-recession-risk-and-reality-world-bank-warns-fedex-flags-worry-1663304464644">World Bank </a>President David Malpass separately to discuss the issues of mutual interest.

The International Monetary Fund has downgraded its outlook for the world economy for 2023, citing a long list of threats that include Russia's war against Ukraine.

IMF cuts 2023 global growth, says ‘worst is yet to come’

IMF dims outlook for 2023 global economy, says 2023 will feel like a recession

2023 will feel like a recession: IMF

IMF trimmed its 2023 global GDP growth forecast to 2.7 percent, 0.2 point down from July expectations

The International Monetary Fund has downgraded its outlook for the world economy for 2023, citing a long list of threats that include Russia's war against Ukraine, chronic inflation pressures, punishing interest rates and the lingering consequences of the global pandemic.
In its report, the 190-country lending agency forecast trimmed its 2023 global <a href="https://www.editorji.com/partner/databaaz/india-s-gdp-growth-will-be-more-constrained-next-year-1662544677172">GDP growth</a> forecast to 2.7 percent, 0.2 point down from July expectations.
The world economy has been dealt multiple blows, with the war in Ukraine driving up food and energy prices following the coronavirus outbreak, while soaring costs and rising interest rates threaten to reverberate around the globe.&nbsp;
The global growth profile is its weakest since 2001, apart from during the global financial crisis and the worst of the pandemic, the <a href="https://www.editorji.com/business-news/imf-warns-global-recession-risks-darker-outlook-how-could-it-affect-you-1665141928248">International Monetary Fund (IMF)</a> said.

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Inflation is finally easing, after 3 quarters of inflation being above 6%. An SBI report says that retail inflation will fall to 5% by March.  



Retail inflation likely to fall to 5% by March: SBI Report

Retail inflation in India saw a marginal decline to 5.72% in December. An SBI research report says that inflation is likely to fall to 5% by March. 

Retail inflation in India saw a marginal decline to 5.72% in December. An SBI research report says that inflation is likely to fall to 5% by March.&nbsp;

For the most part of last year, retail inflation was well above the 6% mark and above the Reserve Bank of India's comfort zone. A new SBI research report says that inflation is likely to fall to 5% by March. Retail inflation for the month of december came in at 5.72%, marginally lower than 5.88% in November 2022 and down from 6.77% in October 2022.&nbsp;
The SBI report by SBI Group Chief Economic Advisor Soumya Kanti Ghosh says that "CPI inflation fell to a 12-month low of 5.72 per cent in December 22, along expected lines, primarily due to huge decline in vegetable prices".&nbsp; The report goes on to say, "Against the evolving landscape, we see little incentive for further (repo) rate hike, with synchronised past actions on rate front yet to show the full impact".&nbsp;
Remember, RBI has undertaken aggressive rate hikes, to the extent of 225 basis points, in an effort to curb inflationary pressures.&nbsp;&nbsp;
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The latest edition of the Manpowergroup employment survey reveals that hiring activity in India will weaken in the January to March quarter over global recession concerns. 

Hiring activity in India to weaken amd global recession fears

The latest edition of the Manpowergroup employment survey reveals that hiring activity in India will weaken in the January to March quarter over global recession concerns

Hiring activity in India to weaken

The latest edition of the Manpowergroup employment survey reveals that hiring activity in India will weaken in the January to March quarter over global recession concerns

Amid fears of a global recession looming large, hiring activity in India could slowdown in the January to March 2023 quarter.
The latest ManpowerGroup Employment Outlook Survey says that Indian employers' hiring intentions are conservative for the current quarter compared to the previous one.
The survey of over 3000 employers, shows that around 48% of Indian companies said that they would hire more people in March quarter, while 16% of the companies expect a reduction in hiring intent and 34% plan to keep the workforce steady.
The report says that India&rsquo;s net employment outlook stands at 32% implying that hiring intentions have fallen 17% on a year-over-year basis and 22% on a quarter-on-quarter basis. Despite this, at 32% net employment outlook, India remains among the countries with the most optimistic outlooks.&nbsp;
The report goes on to say that hiring confidence has taken a hit across countries, amid concerns of a recession coupled with inflationary pressures. Apart from India, countries which report the most optimistic outlooks include Singapore (33%) and Australia (32%). While the employment outlook is most cautious in Japan (8%) and Taiwan (11%).&nbsp;

India's retail inflation for the month of November eased to an 11-month low of 5.8 per cent dropping within RBI's tolerance band of 2-6 per cent after 10 months

Will take measures to further ease inflation says Finance Minister in Lok Sabha

<span style="font-size: 12.0pt; line-height: 107%; font-family: 'Calibri',sans-serif; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; color: black; background: white; mso-ansi-language: EN-IN; mso-fareast-language: EN-IN; mso-bidi-language: AR-SA;">India's retail inflation for the month of November eased to an 11-month low of 5.8 per cent dropping within RBI's tolerance band of 2-6 per cent after 10 months

Finance Minister Nirmala Sitharaman on Wednesday assured the Lok Sabha that the government will take measures to further ease inflation, which has dipped below the RBI's upper tolerance level of 6 per cent. Sitharaman said the government is constantly monitoring the price rise situation in the country and is focused to further bring down the inflation.
"We will bring down further for the sake of common people," she said while replying to a discussion on the first batch of Supplementary Demands for Grants 2022-23 in the Lok Sabha.
The government is constantly watching the price situation of essential commodities, she said.

With the laying off of 600 employees and hiring of 250 fresh members, the net downsizing will be around 350. This accounts for nearly 10 per cent of Oyo's 3,700-employee base

Oyo to downsize 600 employees, hire 250 executives 

With the laying off of 600 employees and hiring of 250 fresh members, the net downsizing will be around 350. This accounts for nearly 10 per cent of Oyo's 3,700-employee base

Online hotel aggregator Oyo is laying off 600 employees in technology and corporate verticals. However, as part of wide-ranging changes in their organisational structure, Oyo plans to hire 250 new employees for partner relationship management and business development teams. The announcement was made on Saturday by Oyo Group Ritesh Agarwal in a statement to the company.
"OYO will downsize 10 per cent of its 3,700-employee base, which includes fresh hiring of 250 members and letting go of 600 employees," a statement said. Product and engineering teams are being merged for smoother functioning, it added.
Ritesh Agarwal, Founder and Group CEO, OYO, said, "We will be doing all that we can to ensure that most of the people we are having to let go, are gainfully employed. Every member of the OYO team and I myself will proactively endorse the strength of each of these employees.
"It is unfortunate that we are having to part ways with a lot of these talented individuals who have made valuable contributions to the company. As OYO grows and a need for some of these roles emerges in the future, we commit to reaching out to them first and offering them the opportunity," Agarwal added.
&nbsp;

The retail e-rupee will be an electronic version of cash, and will be primarily meant for retail transactions

What is retail digital rupee?

The retail e-rupee will be an electronic version of cash, and will be primarily meant for retail transactions

The Reserve Bank of India will launch the first pilot for retail digital Rupee on December 1
A central bank digital currency is the digital form of govt issued currency
This digital rupee would be in the form of a digital token that represents legal tender
It would be issued in the same denominations that paper currency and coins are currently issued and would be distributed through banks
Also read|<a style="color: rgb(53, 152, 219);" href="https://www.editorji.com/business-news/forbes-100-indian-richest-2022-gautam-adani-bagged-top-spot-1669722989653">Forbes 100 Indian richest 2022; Gautam Adani bagged top spot</a>
Users will be able to transact with retail digital rupee through a digital wallet offered by banks and stored on mobile phones
The first pilot will be launched in Mumbai, New Delhi, Bengaluru and Bhubaneswarand later expand it to nine more cities in the initial phase

The consumer price index (CPI), a key measure of inflation, rose at an annual pace of 7.7 percent in September

Stocks rally, dollar slumps as US inflation eases

The consumer price index (CPI), a key measure of inflation, rose at an annual pace of 7.7 percent in September

Stocks rallied while the dollar slumped against rival currencies on Thursday after a drop in US inflation dimmed expectations of more aggressive Federal Reserve rate hikes.
On Wall Street, the Dow gained nearly a thousand points in late morning trading, or 3.0 percent.
The broader S&amp;P 500 jumped 4.5 percent and the tech heavy Nasdaq Composite soared 5.9 percent.
While the annual inflation rate was down from a harsh 9.1 percent in June -- the highest in 40 years -- latest numbers are unlikely to bring quick reprieve from the Federal Reserve's aggressive moves to cool the economy.
The Russia war in Ukraine has sent food and fuel prices soaring, and the energy index surged 17.6 percent over the past 12 months, according to the data.

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