What's NewIndia's November inflation figures eases to 2.3% YoY due to lower food and fuel prices.

India's retail inflation, as measured by Consumer Price Index (CPI), reached a 17-month low of 2.3% year-on-year (YoY) in Nov'18 compared to 4.8% YoY in Nov'17. The headline inflation stood at 3.3% YoY in Oct'18. Based on the current picture on inflation, it is most likely to provide comfort for the RBI and a shift in the monetary policy stance back to neutral from calibrated tightening is highly likely in the next policy meet. (December 12, 2018)

Click here for the full version of comments and chart functions.

Recently updated pages

Latest December 12, 2018

Consumer Price Index (CPI) of India

India's November inflation figures eases to 2.3% YoY due to lower food and fuel prices.

  India's retail inflation, as measured by Consumer Price Index (CPI), fell to its lowest since Jun'17, reaching a 17-month low of 2.3% year-on-year (YoY) in Nov'18 compared to 4.8% YoY in Nov'17. The headline inflation stood at 3.3% YoY in Oct'18. The softening in inflation was lower than the market expectations (2.56% YoY, Bloomberg Poll). The headline inflation has come below RBI's mid-term target of 4% for the fourth consecutive time since the beginning of this year. Food group again ...

Read more..
Latest December 12, 2018

Industrial Production India

Manufacturing, mining and electricity output boosts industrial production in Oct'18.

In Oct'18, the industrial production growth rose to an eleven-month high of 8.1% year-on-year (YoY) compared to a 4.5% YoY in the previous month. The 8.1% growth was led by growth in all the key sectors (manufacturing, electricity, and mining) along with a statistical uplift owing to a favorable base effect. The manufacturing output which constitutes more than three-fourth of the entire index clocked a 7.9% YoY growth in Oct'18, whereas the electricity production was 10.8% higher than a year ...

Read more..
Notes in circulation increased to 13% of GDP as of Nov'18 in response to an increase in Forex reserves.

RBI Balance Sheet contains the assets and liabilities position of the Reserve Bank of India. The balance sheet gives a fair amount of idea of the components of money supply such as notes in circulation and deposits with banks in the economy. The notes in circulation recorded an unprecedented plummet of 33.6% MoM in November 2016, after the demonetization move of the government. Following this, 86% of the total currency in circulation ceased to be a legal tender. Banks were asked to accept depo...

Read more..
India's current account deficit widens due to a higher trade deficit in September quarter.

India's current account deficit (CAD) more than doubled to USD 19.1 billion during Jul-Sep'18 (Q2 FY19) compared to USD 7.2 billion in the same quarter a year ago. In terms of the share to GDP (at market price), the current account deficit stood at 2.9% of GDP, rising from 1.1% of GDP in Q2 FY18. The CAD was around 2.4% of GDP in the previous quarter (Apr-Jun'18). The rise in the current account deficit on account of a large trade deficit will surely pose as a concern for the economy. India i...

Read more..
Forex reserves surged to USD 393.7 billion by end- Nov'18, mainly due to a rise in Foreign Currency Assets.

Foreign Exchange Reserves of India consists of cash, gold, bonds, bank deposits and financial assets denominated in foreign currencies. (Primarily US dollars in the forms of US treasury bonds and institutional bonds). Even though India is the largest gold-consuming nation, the share of gold in total forex reserves is much less than most developed nations. The share of gold in total forex reserves has fallen from 78% prior to liberalization of the Indian economy to around 5.4% at present. As per...

Read more..