Consumer price inflation spikes in July
In June, the CPI was on 3.0%.
READ | Consumer inflation data due this week
Food and alcoholic drinks were the main contributor.
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Time of India
40 minutes ago
- Time of India
Trinamool raises questions over Dhankhar's absence, CPI writes him a letter
Jagdeep Dhankhar NEW DELHI: Exactly a month after he resigned, on the first day of the monsoon session of Parliament, Trinamool Congress raised the issue of former vice president Jagdeep Dhankhar's disappearance from public life, and Communist Party of India wrote to Dhankhar expressing grave concern over his sudden resignation and his silence and withdrawal from the public domain since then. On Wednesday, Congress leader Rahul Gandhi had raised similar concerns as he asked, 'where has the old VP gone?' As the Parliament session came to an end on Thursday, TMC's Derek O' Brien reflected on the state of affairs under the BJP-led NDA government at the Centre. 'No byte, no video, no trace...,' he said referring to Dhankhar's disappearance since Aug 21 evening, when he submitted his resignation, citing health reasons. The TMC leader also took a dig at BJP for failing to elect a party president yet. 'No candidate, no face, no consensus....,' he said. Meanwhile, CPI MP and leader of the party in the Rajya Sabha, P Sandosh Kumar, in his letter to Dhankhar, said that his resignation a month ago, citing 'health reasons,' came as a shock to Parliament and the entire country. 'While differences during his tenure in the Chair were natural, the dignity of the office he held was always respected,' he said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like CVS Hides This $1 Generic Viagra - Here's the Aisle It's Really In. Friday Plans Learn More Undo What has caused greater anxiety, the letter noted, is Dhankhar's complete absence from the public domain since his resignation. The CPI MP observed that Dhankhar has not addressed the press, nor appeared in public, with even his pre scheduled events being cancelled. 'Such silence and withdrawal, after citing health reasons, has understandably created deep concern among fellow parliamentarians and citizens regarding his well-being,' Kumar said. The letter urged Dhankhar to respond and reassure Parliament and the public about his well-being at the earliest. Kumar said that while the process to elect his successor is already underway, clarity and reassurance from Dhankhar himself would help 'dispel speculation, unease, and unanswered questions that continue to surround his unprecedented resignation'.
Mint
2 hours ago
- Mint
Should rate-setting panel track headline or core inflation? RBI stirs debate
The central bank has initiated a process to gather opinions on whether monetary policy should track headline inflation or core inflation, which strips out the impact of fuel and energy price increases. The Reserve Bank of India (RBI) on Thursday released a discussion paper on its inflation-targeting framework seven months before the existing one comes up for renewal. The framework is reviewed every five years, with the last one happening in 2021, when the government, in consultation with RBI, set it at 4% with a tolerance band of +/-2%. The discussion paper asks four questions. First, whether headline inflation or core inflation would best guide the conduct of monetary policy, given evolving relative dynamics of food and core inflation and the continuing high weight of food in the consumer price basket. Second, whether the 4% inflation target continues to remain optimal for balancing growth with stability in a fast-growing, large emerging economy like India. Third, should the tolerance band around the target be revised in any way, including whether it should be narrowed, widened, or eliminated? Lastly, should the target inflation level be removed, and only a range be maintained within the overall ambit of maintaining flexibility without undermining monetary policy's credibility? The debate over whether core inflation should be the benchmark instead of the headline numbers has been ongoing for some time. It centres around monetary policy's handicap on food prices as they are caused by supply-side problems like food supply issues and not by demand, which can be controlled by interest rate changes. Food currently occupies a 46% weight in the headline consumer price index or CPI basket. In July 2024, the Economic Survey for 2023-24 suggested excluding food prices from India's inflation-targeting framework 'The debate on what should be the monetary policy target benchmark–headline inflation or core inflation (which excludes the volatile components of inflation, such as food and fuel from headline)–is premised on the issue of inclusivity vs stability," the discussion paper said. It said that headline inflation is favoured worldwide as a more representative measure of the overall price conditions. In fact, except for Uganda, all nations that target inflation look at headline inflation. The paper said the argument for targeting headline inflation emphasises that downplaying the role of food inflation in price stability can erode monetary policy credibility and de-anchor inflation expectations. According to the paper, there is also the argument that the current CPI base (2011-12) is outdated, and the share of food would decline considerably once it is revised to a more recent year. 'However, the continued dominance of food in Indian households' consumption basket is corroborated by the latest Survey of Household Consumption Expenditure 2023-24. It indicates that 90% of the lowest fractile rural households and 50 per cent of the lowest fractile urban households spend more than 50% of their monthly consumption on food and energy," it said. RBI said the quarterly path since inception of flexible inflation targeting showed that average inflation was at 3.9% during the first four years of the framework and very close to the target. It exceeded the target during 2020-2024 (and even went above the upper threshold level of 6%), driven by supply disruptions on account of the pandemic, geopolitical conflicts and adverse weather events, it said. The paper said that while there are arguments on both sides as to whether to raise or lower the target of 4%, justifications for pursuing the target and the framework stem from India's relative success in lowering inflation and responding to exogenous shocks. The discussion paper said that, like other countries, India may consider narrowing its current tolerance band to about 1-1.5%. Moreover, the recent consumer expenditure survey suggests that the share of food and beverages in the upcoming new CPI series could be lower, further lowering the volatility of headline inflation.
Time of India
2 hours ago
- Time of India
RBI launches discussion paper on inflation targeting framework, seeks public feedback ahead of 2026 review
The Reserve Bank of India ( RBI ) on Thursday released a discussion paper to review the flexible inflation targeting (FIT) framework, with the statutory review of the target due by March 2026. The central bank has invited comments from stakeholders and the public by September 18, 2025, through email. The FIT framework was given statutory backing in May 2016 through amendments to the RBI Act, 1934. As per Section 45ZA, the government, in consultation with the RBI, is required to set an inflation target in terms of the Consumer Price Index (CPI) every five years. The target, first notified in August 2016 for 2016–2021, was retained in March 2021 until March 2026. The discussion paper reviews India's inflation-targeting journey over the past nine years, including the pandemic and post-pandemic phases, while drawing lessons from global experiences. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If You Were Born Between 1945-1975 You Could Be Eligible For This British Seniors Learn More Undo The RBI has sought views on four key issues: whether headline or core inflation should guide monetary policy; whether the 4% inflation target remains appropriate; whether the tolerance band should be changed, narrowed, widened or removed; and whether the target should be replaced with a range to preserve flexibility without losing credibility. Highlighting emerging risks such as geo-economic uncertainties, volatile commodity prices, climate change and shifts in payment systems, the RBI said the review offers an opportunity to revisit the framework for better macroeconomic outcomes. 'This review gives us an opportunity to revisit some of the basic tenets of the framework to nudge the economy towards further improved macroeconomic outcomes,' the paper stated. Live Events The central bank said feedback can be selective and need not cover all questions, with final recommendations to be made after considering responses.
