Inflation Warning
A sharp rise in wholesale inflation ~ to 9.68 per cent in May ~ is more than a statistical development; it is an early warning of stress building beneath the surface of the economy.
A sharp rise in wholesale inflation ~ to 9.68 per cent in May ~ is more than a statistical development; it is an early warning of stress building beneath the surface of the economy.
The wholesale food inflation was at of 4.49 per cent in May compared to 3.11 per cent in April.
At the rate that eggs are being chucked around these days, “deem” or “anda” sellers are not complaining.
Economists and market participants are closely tracking RBI's latest projections on inflation, growth and crude oil prices as the central bank unveils its policy verdict.
Repeated hikes in CNG, petrol and diesel prices across metro cities are expected to increase commuting and logistics costs, adding fresh pressure on consumers and transport operators.
The Budget comes at a time when India remains one of the fastest-growing major economies, even as global growth moderates due to geopolitical uncertainties, tight financial conditions and slowing demand in key markets.
While giving a detailed presentation on the Economic Survey, CEA said the Real GDP growth has improved steadily, rising from an average of 6.4 per cent during FY12-FY20 to 6.5 per cent in FY25, and is projected to accelerate further to 7.4 per cent in FY26.
The Economic Survey observed that, unlike in 2023 and 2024, when rural inflation exceeded urban inflation, rural inflation declined in 2025 and remained lower than urban inflation, reflecting the sharp fall in food prices and offering relief to rural households.
India is poised for a relatively stable growth trajectory in FY26, supported by resilient domestic demand, government-led capital expenditure, and easing inflationary pressures, even as global uncertainties continue to cloud the outlook, according to SBI Capital Markets’ latest EcoCapsule report.
India’s retail inflation is likely to have edged up to 1.66% in December 2025 from 0.71% in November, driven by an unseasonal rise in food prices and a sharp increase in gold prices, even as overall inflation remained well below last year’s levels, according to projections by Union Bank of India (UBI) Research.
