Page 30 - Latest Updates on Inflation
Forex has helped avert a currency run, but continuous inflow has its risks
At a time when India is facing stagflation, its forex reserves have helped avert a currency crisis, but there are unintended consequences of accumulating forex. Manojit Saha explains the risks
 "Forex has helped avert a currency run, but continuous inflow has its risks")
Bank of England to look through temporary inflation rise, says Poll
Inflation will peak at 2.4% in the final quarter of this year before gradually scaling down, the June 14-17 poll found
 "Bank of England to look through temporary inflation rise, says Poll")
Some bright spots
There are still a number of risks to durable economic recovery
 "Some bright spots")
Inflation impact on sovereigns depends on real interest rates: Fitch
Higher levels of global government debt as a result of the coronavirus pandemic have made sovereign creditworthiness increasingly sensitive to interest rate changes.
 "Inflation impact on sovereigns depends on real interest rates: Fitch")
India, Brazil have competing views on inflation: One of them must be right
Which of the two approaches proves most effective will shape the lessons a generation of officials take from the pandemic.
 "India, Brazil have competing views on inflation: One of them must be right")
A diversified portfolio could be best bet against steep inflation: Experts
Inflation has breached the upper limit of the Reserve Bank of India's tolerance band at a time when the economy is growing below its potential
 "A diversified portfolio could be best bet against steep inflation: Experts")
US Fed holds rates at zero, projects two hikes by the end of 2023
"Progress on vaccinations has reduced the spread of Covid-19 in the United States," the Federal Open Market Committee said in a statement released Wednesday
 "US Fed holds rates at zero, projects two hikes by the end of 2023")
May inflation shocker may advance RBI's policy normalisation act
MPC likely to revise inflation forecast upward in August policy review
 "May inflation shocker may advance RBI's policy normalisation act")
Three reasons why farm sector growth may be nearing its LPA in FY22
Farm Sector Growth: Swift progress of southwest monsoon, sharp surge in govt procurement and general uptrend in commodity prices this year could deliver better numbers
 "Three reasons why farm sector growth may be nearing its LPA in FY22")
Best of BS Opinion: Rising inflation risk, Centre's GTR in 2020-21 & more
Here are the best of Business Standard's opinion pieces for Tuesday
 "Best of BS Opinion: Rising inflation risk, Centre's GTR in 2020-21 & more")
Rising inflation risk
Ignoring it for long could increase longer-term costs
 "Rising inflation risk")
RBI will have to look through high inflation for growth, say economists
While the inflation numbers are much above RBI's tolerance band, the central bank would rather hope an urgent reduction of taxes by the govt brings down prices in the interim
Inflation tax masquerading as dividend income
What we have is effectively a tax though it is subtle and non-transparent as it is collected indirectly through the RBI.
High inflation due to daily rise in fuel prices, says Chidambaram
His comments came on a day when retail inflation rose to 6.3 per cent in May, breaching the RBI's comfort level, on the back of costlier food items.
 "High inflation due to daily rise in fuel prices, says Chidambaram")
No more space for monetary steps, tough task ahead for RBI: SBI Report
The report said RBI will face a multiplicity of challenges and a potential inflation uptick that has all the prospects to turn ugly with a marauding global commodity cycle
Asia stocks up, US bond yields dip to 3-month low as inflation fears ease
US bond yields dipped to three-month lows and a broad gauge of Asian shares rose on Friday as investors looked past rising US consumer prices
 "Asia stocks up, US bond yields dip to 3-month low as inflation fears ease")
1947, 1970s, 2008: Inflation experts look back into history for lessons
Central bankers know how to raise benchmark interest rates, but they have less experience in calibrating the exit from quantitative easing.
 "1947, 1970s, 2008: Inflation experts look back into history for lessons")
Reopening US economy heat up inflation; labour market recovery gets a boost
May's inflation drivers appear to be temporary, fitting in with Federal Reserve Chair Jerome Powell's repeated assertion that higher inflation will be transitory
 "Reopening US economy heat up inflation; labour market recovery gets a boost")
China's highest producer inflation in 12 yrs highlights price pressures
China's May factory gate prices rose at their fastest annual pace in over 12 years
 "China's highest producer inflation in 12 yrs highlights price pressures")
China's factory inflation at 13-year high adds to global pressures
The producer price index climbed 9% in May from a year earlier, driven by price increases for oil, metals and chemicals, the National Bureau of Statistics said
 "China's factory inflation at 13-year high adds to global pressures")
