More rate cuts could be in store as core inflation eases

Retail inflation at 19-month low in January industrial output up 2.4% in December

Retail inflation eases to 2.05% in January

Retail inflation in India eased to 2.05% in January compared to 2.11% in December, according to government data released on Tuesday.

This is down from 2.1% the previous month.

Inflation was pulled lower by a decline in electricity, gas and other fuel prices between December and January, which was partially offset by lower air fares.

Inflation was dragged lower as a steep decline in oil prices that took place late a year ago appeared in petrol prices charged at the pumps, while Ofgem's new energy price cap was also seen weighing on the index.

This breaking news story is being updated and more details will be published shortly.

December's growth was much faster than a downwardly revised 0.3 percent year-on-year increase in November, the data showed.

OnePlus to launch 5G gaming smartphone at MWC 2019
The device is expected to arrive in the United Kingdom first on EE, as CNET reported back in December, as early as the end of May. It is fully possible the company may showcase a 5G variant of the OnePlus 6T like how other manufacturers are doing now .

Consumer-price growth reached 2.05 percent in January, well below the Reserve Bank of India's medium term target of 4 percent.

January inflation missed economists' expectations and the central bank's target of 2 per cent. "This reflected the imposition of a new cap on Standard Variable Tariffs, which was 6% below prior average levels". The inflation was 5.07 per cent in January 2018.

While the current capped rate for energy prices is effective until the end of March, it was announced earlier this month that it would rise by 10%, drawing criticism of the price cap for the government.

That difference is now negligible, helping the Bank of England as it holds off on fresh interest rate hikes pending the outcome of Britain's Brexit stand-off with the rest of the EU.

If the Withdrawal Agreement is not ratified before March 29 then the United Kingdom will automatically leave the European Union and default to doing business with it on World Trade Organization (WTO) terms, which analysts say would be bad for the economy.

"Waning UK business investment, and potential short-term financing difficulties for many SMEs (small and medium-sized enterprises) in the event of a no-deal Brexit, will require the Bank of England to keep rates low this year, and the latest inflation figures provide the MPC ( the Bank's Monetary Policy Committee) with a mandate to do that". The fall in the value of the pound after the Brexit vote had pushed inflation higher, squeezing household disposable income as it pushed up the cost of imported goods.

Latest News