A decline in core inflation pressures is critical for moderating price gains and returning them to the Reserve Bank of India’s 4 percent midpoint, a rate-setter at the Indian Monetary Policy Committee said.
The pass through of higher input cost pressures in overall prices might not be complete yet, committee external member Shashanka Bhide said, adding that rising demand “however modest and uneven” in the absence of productivity improvements would stoke prices.
The comments came after policymakers trained their eyes on elevated core inflation amid easing consumer prices. Core inflation, calculated after stripping out volatile food and energy prices, has stayed above 6 percent for 14 months in a row, while retail inflation cooled to 5.88 percent last month.
Photo: EPA-EFE
“Bringing down core inflation pressures is crucial in the overall context,” Bhide said in an interview yesterday.
Easing commodity prices and slowing demand would cool prices, but a weak rupee and the Russian invasion of Ukraine is a concern, he said.
The Reserve Bank of India has raised its policy repurchase rate by 225 basis points since May, including three half-point moves, to tame price gains.
“We need to be looking at moderate inflation on a sustained basis,” Bhide said. “We need to be moving to the target inflation rate keeping in view the impact of the cumulative policy actions and also the growth trajectory.”
His colleague Jayanth Rama Varma said in another interview that excessive rate tightening was risking India’s growth.
‘DECENT RESULTS’: The company said it is confident thanks to an improving world economy and uptakes in new wireless and AI technologies, despite US uncertainty Pegatron Corp (和碩) yesterday said it plans to build a new server manufacturing factory in the US this year to address US President Donald Trump’s new tariff policy. That would be the second server production base for Pegatron in addition to the existing facilities in Taoyuan, the iPhone assembler said. Servers are one of the new businesses Pegatron has explored in recent years to develop a more balanced product lineup. “We aim to provide our services from a location in the vicinity of our customers,” Pegatron president and chief executive officer Gary Cheng (鄭光治) told an online earnings conference yesterday. “We
LEAK SOURCE? There would be concern over the possibility of tech leaks if TSMC were to form a joint venture to operate Intel’s factories, an analyst said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday stayed mum after a report said that the chipmaker has pitched chip designers Nvidia Corp, Advanced Micro Devices Inc and Broadcom Inc about taking a stake in a joint venture to operate Intel Corp’s factories. Industry sources told the Central News Agency (CNA) that the possibility of TSMC proposing to operate Intel’s wafer fabs is low, as the Taiwanese chipmaker has always focused on its core business. There is also concern over possible technology leaks if TSMC were to form a joint venture to operate Intel’s factories, Concord Securities Co (康和證券) analyst Kerry Huang (黃志祺)
It was late morning and steam was rising from water tanks atop the colorful, but opaque-windowed, “soapland” sex parlors in a historic Tokyo red-light district. Walking through the narrow streets, camera in hand, was Beniko — a former sex worker who is trying to capture the spirit of the area once known as Yoshiwara through photography. “People often talk about this neighborhood having a ‘bad history,’” said Beniko, who goes by her nickname. “But the truth is that through the years people have lived here, made a life here, sometimes struggled to survive. I want to share that reality.” In its mid-17th to
‘MAKE OR BREAK’: Nvidia shares remain down more than 9 percent, but investors are hoping CEO Jensen Huang’s speech can stave off fears that the sales boom is peaking Shares in Nvidia Corp’s Taiwanese suppliers mostly closed higher yesterday on hopes that the US artificial intelligence (AI) chip designer would showcase next-generation technologies at its annual AI conference slated to open later in the day. The GPU Technology Conference (GTC) in California is to feature developers, engineers, researchers, inventors and information technology professionals, and would focus on AI, computer graphics, data science, machine learning and autonomous machines. The event comes at a make-or-break moment for the firm, as it heads into the next few quarters, with Nvidia CEO Jensen Huang’s (黃仁勳) keynote speech today seen as having the ability to
RSS