Inflation: India - Revision history

Jyoti: /* 2012> 19 */

2026-07-08T19:38:12Z

‎2012> 19

Jyoti: /* Food inflation */

2024-12-21T04:59:54Z

‎Food inflation

Jyoti: /* 1981-2017; 2017- 24 */

2024-09-18T19:05:11Z

‎1981-2017; 2017- 24

Jyoti: /* Reserve Bank of India targeting and inflation */

2024-09-18T19:03:42Z

‎Reserve Bank of India targeting and inflation

Jyoti: /* 1981-2017; 2017- 24 */

2024-09-18T19:01:12Z

‎1981-2017; 2017- 24

Jyoti: /* Consumer Price Index (CPI) */

2024-09-18T18:59:40Z

‎Consumer Price Index (CPI)

Jyoti: /* Wholesale Price Index (WPI) */

2023-10-12T18:52:34Z

‎Wholesale Price Index (WPI)

Jyoti: /* 1990-2019 */

2023-08-19T06:39:51Z

‎1990-2019

Jyoti: /* 2018, Dec */

2023-03-22T13:15:03Z

‎2018, Dec

Jyoti: /* Food, and some consumer durables, 2014-22 */

2023-03-05T12:34:30Z

‎Food, and some consumer durables, 2014-22

@@ Line 157: / Line 157: @@
 '''See graphic''':
 '' Food (and other) inflation in India, 2012> 19 ''
 ==2019==

← Older revision		Revision as of 04:59, 21 December 2024
Line 165:		Line 165:

	'' Food Inflation in India in 2019. ''		'' Food Inflation in India in 2019. ''
		+
		+	=Food inflation analysed=
		+	==Tomato, potato impact: 2015-23==
		+	[https://epaper.indiatimes.com/article-share?article=14_10_2024_015_018_cap_TOI Surojit Gupta, Oct 14, 2024: ''The Times of India'']
		+	[[File: Tomato, potato impact on Food inflation in India, 2015-23.jpg\|Tomato, potato impact on Food inflation in India: 2015-23 <br/> From: [https://epaper.indiatimes.com/article-share?article=14_10_2024_015_018_cap_TOI Surojit Gupta, Oct 14, 2024: ''The Times of India'']\|frame\|500px]]
		+
		+
		+	High food inflation has been a challenge for policymakers. Food has a high share of 45.9% in the consumer price index and supply shocks influence the overall retail inflation numbers. The focus in recent months has been on the surge in tomato, onion and potato (TOP) prices. TOP accounts for 4.8% in the retail food and beverages group and 2.2% in the overall CPI but fluctuation in their prices influences overall retail inflation. A recent RBI working paper has tried to examine the price dynamics in these commodities and offers some solutions to tame the high volatility.
		+
		+	''' Why are tomato, onion and potato prices high? '''
		+
		+	Short seasonal crop cycles, storage problems due to their perishable nature, regional concentration of production and supply chain issues and extreme weather have a bearing on the price situation. Rising demand and growing preference for these vegetables in specific areas have added to the price surge. Extreme weather conditions such as heat waves and floods add to the supply chain issues.
		+
		+	A patchy supply chain for these vegetables is also a crucial factor in how prices fluctuate. For example, studies have shown that during lean season, consumers are confronted with high prices and short supply and during a bumper season, farmers are forced to dump their produ- ce, resort to distress sales as prices fall below the production costs. Fluctuating demand-supply scenarios also have a bearing on prices.
		+
		+	''' How has production of these crops risen? '''
		+
		+	Production has grown rapidly and in 2022-23, tomato, onion and potato production was estimated at 20.4 million metric tonnes (MMT), 30.2 MMT and 60.1 MMT, according to the paper. India now is the second largest producer of tomato and potato in the world. It has also overtaken China as the largest producer of onion in the world and in 2022 contributed 28.6% of global production, the paper said, citing FAO data.
		+
		+	''' Possible policy interventions to tame price volatility in TOPs… '''
		+
		+	The RBI paper has suggested several measures such as agriculture marketing reforms, storage solutions, processing and raising productivity of tomato, onion and potato.
		+
		+	Under marketing reforms, the paper has suggested increasing private mandis to increase transparency for these perishable commodities and these entities will provide a wider choice to farmers to sell their crops. Competition is also expected to improve the state of Agricultural Produce Market Committee (APMC).
		+	It has suggested re-launching potato futures, which were traded in the country’s commodity exchange but were banned in 2014. Authorities should also consider launching future trading in onions for better price discovery and managing risks. Storage should be expanded across the country as cold storages for potato are largely in UP while those for onions are mostly in Maharashtra.

	[[Category:Economy-Industry-Resources\|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA		[[Category:Economy-Industry-Resources\|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA

@@ Line 472: / Line 472: @@
 [https://epaper.indiatimes.com/article-share?article=20_08_2024_015_014_cap_TOI  Sidhartha, August 20, 2024: ''The Times of India'']
-[[File: Reserve Bank of India targeting and inflation, and India: 1981-2017; 2017-2023; 2012-24; Insulation in India and Comparable countries.jpg|Reserve Bank of India targeting and inflation, and India: 1981-2017; 2017-2023; 2012 – 24 <br/> Insulation in India VIS-À-VIS Comparable countries <br/> From: [https://epaper.indiatimes.com/article-share?article=20_08_2024_015_014_cap_TOI  Sidhartha, August 20, 2024: ''The Times of India'']|frame|500px]]
+[[File: Reserve Bank of India targeting and inflation, and India- 1981-2017; 2017-2023; 2012-24; Insulation in India and Comparable countries.jpg|Reserve Bank of India targeting and inflation, and India: 1981-2017; 2017-2023; 2012 – 24 <br/> Insulation in India VIS-À-VIS Comparable countries <br/> From: [https://epaper.indiatimes.com/article-share?article=20_08_2024_015_014_cap_TOI  Sidhartha, August 20, 2024: ''The Times of India'']|frame|500px]]
 New Delhi : The inflation targeting mandate to RBI has helped reduce inflation and made it less volatile, making monetary policy more effective, a new paper by two economists has said.
@@ Line 485: / Line 485: @@
  They also concluded that keeping inflation within a narrower band, than the current 2-6%, will require more frequent changes in policy rates. “Such variations might create a less predictable climate for investment and hence challenges for economic growth,” it said adding that the world was entering a period of heightened volatility.
 [[Category:Economy-Industry-Resources|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA

@@ Line 472: / Line 472: @@
 [https://epaper.indiatimes.com/article-share?article=20_08_2024_015_014_cap_TOI  Sidhartha, August 20, 2024: ''The Times of India'']
-[[File: Reserve Bank of India targeting and inflation, and India: 1981-2017; 2017-2023; 2012 – 24; Insulation in India VIS-À-VIS Comparable countries.jpg|Reserve Bank of India targeting and inflation, and India: 1981-2017; 2017-2023; 2012 – 24 <br/> Insulation in India VIS-À-VIS Comparable countries <br/> From: [https://epaper.indiatimes.com/article-share?article=20_08_2024_015_014_cap_TOI  Sidhartha, August 20, 2024: ''The Times of India'']|frame|500px]]
+[[File: Reserve Bank of India targeting and inflation, and India: 1981-2017; 2017-2023; 2012-24; Insulation in India and Comparable countries.jpg|Reserve Bank of India targeting and inflation, and India: 1981-2017; 2017-2023; 2012 – 24 <br/> Insulation in India VIS-À-VIS Comparable countries <br/> From: [https://epaper.indiatimes.com/article-share?article=20_08_2024_015_014_cap_TOI  Sidhartha, August 20, 2024: ''The Times of India'']|frame|500px]]
-−
 New Delhi : The inflation targeting mandate to RBI has helped reduce inflation and made it less volatile, making monetary policy more effective, a new paper by two economists has said.
@@ Line 486: / Line 485: @@
  They also concluded that keeping inflation within a narrower band, than the current 2-6%, will require more frequent changes in policy rates. “Such variations might create a less predictable climate for investment and hence challenges for economic growth,” it said adding that the world was entering a period of heightened volatility.
 [[Category:Economy-Industry-Resources|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA

← Older revision		Revision as of 19:01, 18 September 2024
Line 486:		Line 486:

	They also concluded that keeping inflation within a narrower band, than the current 2-6%, will require more frequent changes in policy rates. “Such variations might create a less predictable climate for investment and hence challenges for economic growth,” it said adding that the world was entering a period of heightened volatility.		They also concluded that keeping inflation within a narrower band, than the current 2-6%, will require more frequent changes in policy rates. “Such variations might create a less predictable climate for investment and hence challenges for economic growth,” it said adding that the world was entering a period of heightened volatility.
		+
		+	[[Category:Economy-Industry-Resources\|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA
		+	INFLATION: INDIA]]
		+	[[Category:India\|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA
		+	INFLATION: INDIA]]
		+	[[Category:Pages with broken file links\|INFLATION: INDIAINFLATION: INDIA
		+	INFLATION: INDIA]]

	[[Category:Economy-Industry-Resources\|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA		[[Category:Economy-Industry-Resources\|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA

← Older revision		Revision as of 18:59, 18 September 2024
Line 467:		Line 467:

	Overall CPI inflation stood at 5.41 per cent in November in 2015, and at 4.20 per cent in October 2016		Overall CPI inflation stood at 5.41 per cent in November in 2015, and at 4.20 per cent in October 2016
		+
		+	=Reserve Bank of India targeting and inflation=
		+	==1981-2017; 2017- 24==
		+	[https://epaper.indiatimes.com/article-share?article=20_08_2024_015_014_cap_TOI Sidhartha, August 20, 2024: ''The Times of India'']
		+
		+	[[File: Reserve Bank of India targeting and inflation, and India: 1981-2017; 2017-2023; 2012 – 24; Insulation in India VIS-À-VIS Comparable countries.jpg\|Reserve Bank of India targeting and inflation, and India: 1981-2017; 2017-2023; 2012 – 24 <br/> Insulation in India VIS-À-VIS Comparable countries <br/> From: [https://epaper.indiatimes.com/article-share?article=20_08_2024_015_014_cap_TOI Sidhartha, August 20, 2024: ''The Times of India'']\|frame\|500px]]
		+
		+
		+	New Delhi : The inflation targeting mandate to RBI has helped reduce inflation and made it less volatile, making monetary policy more effective, a new paper by two economists has said.
		+
		+	The paper by Barry Eichengreen, a professor at UC Berkley and NCAER director general Poonam Gupta has suggested that govt should not change RBI’s mandate or tinker with the inflation tolerance band of 2-6%, arguing it would be “risky and counterproductive”.
		+
		+	In recent weeks, especially since the release of the Economic Survey last month, there has been debate over targeting core inflation, excluding food. The paper, however, argued against it. “Our results indicate that food-price inflation feeds through to core inflation as producers mark up the prices of other products. Foodprice inflation, which is captured by headline inflation, has predictive content for future core inflation, in other words, and should not be disregarded. Whereas central banks in advanced economies have been able to look through fluctuations in food and fuel price inflation, without consequences for core inflation and therefore without jeopardising their inflation targets, in India, where food is a much more important component of consumption baskets, this may not be the case.”
		+
		+	Instead, it called for an urgent reworking of the weight assigned to food and beverages in the basket of goods that make up the consumer price index (CPI). Arguing that the per capita income has doubled since 2011-12, when the 45.8% weight was assigned, the paper suggested that a 40% weight should now be assigned now, which is likely to decline to 30% in a decade based on the per capita income projections.
		+
		+	While RBI has a 4% inflation target as against 4.5% in Brazil, 3% in Indonesia and 1.5% in Thailand, the economists said, India has lower income and a faster-growing catch up economy and the current goal is appropriate.
		+
		+	They also concluded that keeping inflation within a narrower band, than the current 2-6%, will require more frequent changes in policy rates. “Such variations might create a less predictable climate for investment and hence challenges for economic growth,” it said adding that the world was entering a period of heightened volatility.
		+
		+	[[Category:Economy-Industry-Resources\|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA
		+	INFLATION: INDIA]]
		+	[[Category:India\|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA
		+	INFLATION: INDIA]]
		+	[[Category:Pages with broken file links\|INFLATION: INDIAINFLATION: INDIA
		+	INFLATION: INDIA]]

	=State-wise data on inflation=		=State-wise data on inflation=

@@ Line 233: / Line 233: @@
 Wholesale prices plunged for the ninth consecutive month in July on the back of a decline in food and fuel prices, raising prospects of a cut in interest rates to give a push to growth. This was the lowest level of the inflation based on wholesale price index (WPI) since 1976 and, according to economists, is the longest stretch of negative wholesale prices in the country since 1975.WPI inflation was in negative zone for 12 months between July 1975 and June 1976.
 Data released by the commerce ministry showed the wholesale inflation fell 4.05% in July compared to a decline of 2.40% for the previous month and 5.41% during the corresponding month of the previous year.
@@ Line 381: / Line 382: @@
  Fuel and power basket inflation eased to 14. 8%, from 15. 2% in the preceding month. In manufactured products it was 1. 9%, against nearly 3% in January. The deceleration in WPI comes in line with the dip in retail inflation.
  AGENCIES
 [[Category:Economy-Industry-Resources|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA

← Older revision		Revision as of 06:39, 19 August 2023
Line 78:		Line 78:
	To make the old and new data compatible, the Crisil study compared the food component of the consumer price index introduced since 2011-12 with the same component of consumer price index for industrial workers for years before 2011-12.		To make the old and new data compatible, the Crisil study compared the food component of the consumer price index introduced since 2011-12 with the same component of consumer price index for industrial workers for years before 2011-12.

		+	==1991 – 2016: during El Nino years==
		+	[[File: Food inflation, 1991 – 2016, during El Nino years.jpg\|Food inflation, 1991 – 2016: during El Nino years <br/> From: [https://epaper.timesgroup.com/article-share?article=04_08_2023_027_002_cap_TOI August 4, 2023: ''The Times of India'']\|frame\|500px]]
		+
		+	'''See graphic''':
		+
		+	'' Food inflation, 1991 – 2016: during El Nino years ''
		+
		+	[[Category:Economy-Industry-Resources\|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA
		+	INFLATION: INDIA]]
		+	[[Category:India\|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA
		+	INFLATION: INDIA]]
		+	[[Category:Pages with broken file links\|INFLATION: INDIAINFLATION: INDIA
		+	INFLATION: INDIA]]

	==2016 July- 2019 Dec: some periods of high inflation==		==2016 July- 2019 Dec: some periods of high inflation==

@@ Line 347: / Line 347: @@
 “Considering the higher than targeted level of inflation and the fiscal challenges with regard to the government surpassing its fiscal deficit target, the RBI is likely to maintain its status quo on the policy rates in the forthcoming policy meeting. Going ahead, RBI’s monetary policy would remain contingent on the inflation trajectory and the government’s fiscal stance,” said Madan Sabnavis, chief economist at CARE Ratings.
-[[Category:Economy-Industry-Resources|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA
+==2021- 23 Feb==
-INFLATION: INDIA]]
+[https://epaper.timesgroup.com/article-share?article=15_03_2023_024_022_cap_TOI  March 15, 2023: ''The Times of India'']
-[[Category:India|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA
-INFLATION: INDIA]]
-[[Category:Pages with broken file links|INFLATION: INDIAINFLATION: INDIA
-INFLATION: INDIA]]
-[[Category:Economy-Industry-Resources|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA
+[[File: Wholesale inflation in India, 2021- 23 Feb.jpg|Wholesale inflation in India, 2021- 23 Feb <br/> From: [https://epaper.timesgroup.com/article-share?article=15_03_2023_024_022_cap_TOI  March 15, 2023: ''The Times of India'']|frame|500px]]
-INFLATION: INDIA]]
-[[Category:India|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA
-INFLATION: INDIA]]
+New Delhi : The wholesale price-based inflation declined to a nearly two-year low of 3. 9% in February on easing prices of manufactured items, fuel and power, even though food items remained expensive.
-[[Category:Pages with broken file links|INFLATION: INDIAINFLATION: INDIA
-INFLATION: INDIA]]
+ This is the ninth straight month of decline in the rate of wholesale price-index (WPI) -based inflation. WPI inflation was 4. 7% in January and 13. 4% in February, last year.
 [[Category:Economy-Industry-Resources|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA

← Older revision		Revision as of 12:34, 5 March 2023
Line 122:		Line 122:

	How To Read CPI: The Consumer Price Index (CPI) measures changes in prices of items over time. The change in prices is calculated with reference to a base year, for which the value of the index is set at 100. The base year for the current CPI is 2012. Say, an item was selling for 10 per kilo in 2012, then 10 is assumed to be 100. If the price in 2022 is 20 per kilo, which is a 100% increase over the 2012 value, the index value of the item will be 100 (the base) +100 (the percentage increase in price over the base), that is 200. If the 2022 price is 15 per kilo, or a 50% increase over 2012 prices, the value of the index will become 100+50 = 150 for 2022. Thus, changes in the index value of a commodity mirror changes in its price. So, the fact that the present index value (March 2022) is 162. 3 for milk and 142. 5 for petrol tells us that between 2012 and March 2022, the price of milk rose 62. 3% (100 is the base price in 2012, remember) and that of petrol by 42. 5%, that is by less. Note: Index data used here is as available from January 2014 onwards.		How To Read CPI: The Consumer Price Index (CPI) measures changes in prices of items over time. The change in prices is calculated with reference to a base year, for which the value of the index is set at 100. The base year for the current CPI is 2012. Say, an item was selling for 10 per kilo in 2012, then 10 is assumed to be 100. If the price in 2022 is 20 per kilo, which is a 100% increase over the 2012 value, the index value of the item will be 100 (the base) +100 (the percentage increase in price over the base), that is 200. If the 2022 price is 15 per kilo, or a 50% increase over 2012 prices, the value of the index will become 100+50 = 150 for 2022. Thus, changes in the index value of a commodity mirror changes in its price. So, the fact that the present index value (March 2022) is 162. 3 for milk and 142. 5 for petrol tells us that between 2012 and March 2022, the price of milk rose 62. 3% (100 is the base price in 2012, remember) and that of petrol by 42. 5%, that is by less. Note: Index data used here is as available from January 2014 onwards.
		+
		+
		+	==2007- 2019==
		+	[[File: Food inflation during El Nino years, 2007- 2019.jpg\|Food inflation during El Nino years, 2007- 2019 <br/> From: [https://epaper.timesgroup.com/article-share?article=28_02_2023_017_006_cap_TOI February 28, 2023: ''The Times of India'']\|frame\|500px]]
		+
		+	'''See graphic''':
		+
		+	'' Food inflation during El Nino years, 2007- 2019 ''

	[[Category:Economy-Industry-Resources\|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA		[[Category:Economy-Industry-Resources\|IINFLATION: INDIAINFLATION: INDIAINFLATION: INDIA