India Inc presses for rate cut as inflation cools

A statue is silhouetted against the Bank of England in the City of London

Figures from the Office for National Statistics (ONS) show the Consumer Prices Index (CPI) fell to 3% in December, down from 3.1% in November when inflation reached its highest level since March 2012.

The report said the Urban inflation rate rose by 15.78 per cent year-on-year in December from 16.27 per cent recorded in November, while the rural inflation rate also eased by 15.02 per cent in December from 15.59 per cent in November.

Inflation has rolled back from a near six-year high, as falling price tags on clothes and toys helped ease the pressure on household finances last month.

United Kingdom inflation figures released this morning were within expectations. "The dip in the inflation for primary food articles in the WPI for December 2017 may signal some correction in the CPI inflation for food items in the ongoing month", she added.

'But the BRC's food shop price index suggests that supermarkets took a breather from implementing big sterling-related price rises. ONS said in it's statement.

"Specifically, we expect consumer price inflation to fall back to 2.1 per cent by the end of 2018".

It remained too early to predict a rebalance between inflation and wage growth - the pace of annual wage growth at 2.5% still lags inflation - but pressures on household budgets were expected to see some relief in the coming months.

Hargreaves Lansdown senior economist Ben Brettell said apart from the "Brexit noise", the UK's economic situation is in keeping with the majority of the developed world, with an ageing demographic and disruptive technologies causing price pressure and limiting the BoE's incentive to hike rates. It also marginally increased its retail inflation range for the second half of the current fiscal to 4.3-4.7% from 4.2-4.6% projected in October on account of rising global crude oil prices and implementation of the housing rent allowance (HRA) for central government employees recommended by the Seventh Pay Commission.

"All this has implications for interest rates". I see last year's quarter point move as more of a tacit admission that the cut to 0.25% was unnecessary in the first place, rather than the start of a sustained upwards trend.

The consumer price index climbed 0.9 percent year-over-year in December, the same rate of increase as in November. That stoked inflation by raising the cost of imported goods such as food and oil.

Related News:

  • Iran's leading cleric extends sympathies on Sanchi tragedy

    Iran's leading cleric extends sympathies on Sanchi tragedy

    Iranian President Hassan Rouhani formed a special committee to investigate the cause of the incident last week. After more than a week burning in the East China Sea, an oil tanker that collided with a freighter has sunk.
    United States  discloses PKK/PYD-led army plan in Syria

    United States discloses PKK/PYD-led army plan in Syria

    Since the PKK launched its terror campaign in 1984, an estimated 40,000 people have been killed in Turkey in related violence. Turkey sees YPG as the offshoot of outlawed Kurdistan Workers' Party (PKK).
    Astros bolster rotation by landing Pirates ace Gerrit Cole

    Astros bolster rotation by landing Pirates ace Gerrit Cole

    This also indicates the Pirates are indeed going to retool for 2018, with Josh Harrison and Andrew McCutchen the next to go. It was the highest ERA of his four-year career, and Cole went 19-8 with a 2.60 ERA en route to becoming an All-Star in 2015.
  • Google Expanding Cloud Network with Three New Undersea Cables

    Google Expanding Cloud Network with Three New Undersea Cables

    Google will commission three new undersea cables in 2019 in a substantial expansion of its global infrastructure. Both are consortium cables, whereas Curie is Google's private cable linking Los Angeles and Chile.
    'Ron Weasley's flying vehicle ?' Speeding auto  'flies' into second floor of building

    'Ron Weasley's flying vehicle ?' Speeding auto 'flies' into second floor of building

    It flew about 60 feet before smashing into the second floor of the building, which contained a dental practice. The driver hit a raised center median on 17th Street, launching the vehicle into the air.
    Kevin Sumlin goes to the University of Arizona

    Kevin Sumlin goes to the University of Arizona

    College football insider Brett McMurphy reported Sumlin has agreed to a 5-year contract with Arizona. NFL.com analyst Gil Brandt was the first to come out with the news Sumlin is headed to Arizona.
  • Man Living in MI  for 30 Years Deported

    Man Living in MI for 30 Years Deported

    Monday morning, the Garcia family had a family friend drive them to the airport, where they were told Jorge would be deported. Since then, they have met with immigration officials annually, and each time his deportation was delayed.
    Karthik called up to replace Saha

    Karthik called up to replace Saha

    The 32-year-old Karthik has 1000 runs from 23 Tests at 27.77 apart from snaffling up 51 catches and effecting five stumpings. Saha was ruled out of the second Test in Centurion due to a hamstring injury and was subsequently replaced by Parthiv Patel.
    Girl should be allowed to take medical marijuana at school: suit

    Girl should be allowed to take medical marijuana at school: suit

    The law prohibits smoking the drug in school, but allows patches or tinctures, as long as it's not disruptive to classrooms. The cannabis, combined with a special diet, are helping Ashley lead a better life, according to her mother.
  • Protected Immigration Status for Salvadorans to End in 2019

    Protected Immigration Status for Salvadorans to End in 2019

    One of the biggest concerns in this development involves what's at the very heart of what Bethany does: keeping families together. The nature of that trade-off is that people who have made homes here will be obligated to leave them in due course.
    Uber reportedly uses a 'secret tool' to hide data from police

    Uber reportedly uses a 'secret tool' to hide data from police

    Late previous year , news broke that Uber is officially under federal investigation for a program it called Greyball . Less than a week after Greyball was exposed, Uber said it stopped using the software.
    NFC Divisional Playoff New Orleans Saints at Minnesota Vikings: Preview and Prediction

    NFC Divisional Playoff New Orleans Saints at Minnesota Vikings: Preview and Prediction

    The Vikings activated Bradford from injured reserve on Saturday, so Teddy Bridgewater will move to third on the depth chart. Maybe, that fact is better for the Saints , who came up short in a 29-19 loss, than it is for the Vikings .


Most liked

Philippines' Mayon volcano alert raised as eruption feared
Alert level 4 means an eruption is possible "within days" while level 5 is when a hazardous eruption is under way. Mayon lies in coconut-growing Albay province about 340 kilometers (210 miles) southeast of Manila .

Steve Bannon reportedly gets subpoenaed to testify in Russian Federation investigation
When he left the White House , Bannon said he would work to help Trump and wage a populist campaign from the outside. Bannon might also get questioned about the presidential transition.

Netanyahu to attend memorial for 2008 attack on Mumbai Jewish community center
Moshe left India after the attacks and has been living with his Grandparents, at Afula, which is situated in northern Israel. Moshe's grandfather Shimon Rosenberg said he and his wife will accompany their grandson when he lands in Mumbai on Tuesday.

India record 100-run win over Australia in opener
The contribution of the tail-enders was enormous , especially with Abhishek Sharma putting up a useful 23 off just 8 deliveries. Mavi and Nagarkoti were constant troubles for the young Australians as they kept changing their pace and length.

Oliver Ivanovic, Kosovo Serb politician - obituary
Serbian government negotiators walked out of EU-mediated talks with Kosovo Albanians in Brussels after the news. The southern province declared independence in 2008, which was never recognized by Belgrade .

Lavrov lashes out at U.S. in annual news conference
Speaking about the U.S.' North Korea policy, he said that a possible military conflict should be avoided. She said that Trump's statement appeared to have been directed "first and foremost to his own Congress".

Google pulls apps showing pornographic adverts to children
Crucially, all of the different types of attack that AdultSwine performs rely on you being deceived by content that it displays. The infected apps were discovered and disclosed Friday by researchers at cyber threat intelligence firm Check Point .

Sony PS4 Pro 1TB Glacier White Is Up For Pre-order
To hype fans up, Capcom has released a new video showing the Rotten Vale area and the deadly monsters therein. It also gives you a taste of exactly how hard it will be to defeat some of the monsters.

'This place is a shithole' projection seems on Donald Trump's DC resort
This time around, Trump wasn't in Washington to see the projections in person as he spent the weekend at Mar-a-Lago. An artist projected "shithole" onto the front of Donald Trump's Washington DC hotel overnight.

Warrington bomb victim's father pays tribute to Dolores O'Riordan
Bono yelled " Linger " at the end of "A Rainy Night in Soho", referencing the Cranberries' hit song, according to the Blast . Higgins said O'Riordan and The Cranberries "had an enormous influence on rock and pop music in Ireland and internationally".

Palestine slams United States ambassador to Israel for 'complicating road towards peace'
The meeting was called in the wake of Trump's December 6 declaration on Jerusalem that deeply angered the Palestinians. There is some skepticism that the Palestinians will go as far as rescinding recognition of Israel.

Watch the first trailer for The Handmaid's Tale season 2
The sophomore season will explore the social and political conflicts that led to Gilead's succession from the United States. Overall, Season 2 will be darker and more demanding, "if that's possible", said Moss.

Another Nirbhaya? 15-Year-Old Girl Gangraped, Brutalised Found Dead In Haryana
She had reportedly been abducted by a 20 year old man, who is missing from his village and has already been booked by the police. He said it was possible that the girl had struggled to escape but she was surpassed and it seems like someone sat on her chest.

Senate votes to debate key NSA surveillance program after Trump's contradictory tweets
Section 702 can't be used to target any US citizen, "any other USA person" or any foreign citizen within the United States. On Thursday morning, Donald Trump posted a Tweet expressing his skepticism about the government surveillance.

Girl attacked twice in 10 minutes by "hijab scissor" assailant
Police are probing a possible hate crime after scissors-wielding suspect allegedly attacks sixth-grader's headscarf. Intolerance and hate of any kind, including islamophobia, has no place in our city, our province, or our country".