According to data from the Ministry of Statistics & Programme Implementation, India's retail inflation reached 5.49% in September 2024, the highest since January of that year. This increase was mainly driven by a spike in food prices, with the All India Consumer Food Price Index jumping to 9.24%. The Reserve Bank of India (RBI) has projected a gradual decline in inflation in the coming months, but is keeping a close eye on the evolving conditions to prevent a further rise in prices.
India's Wholesale Price Inflation Spikes to Highest in Over Two Years
India's wholesale price index (WPI) inflation surged to its highest level in over two years in September 2024, driven by a sharp rise in food and fuel prices. The WPI, which measures the change in wholesale prices of goods sold to businesses, rose by 6.22% year-on-year in September, compared to 5.36% in August.
Background
Wholesale inflation in India has been trending upwards in recent months, largely due to rising global commodity prices. The ongoing Russia-Ukraine conflict has disrupted global energy supplies, leading to higher prices for oil and gas. Additionally, unfavorable weather conditions have impacted crop yields, contributing to higher food prices.
September 2024 Surge
The September 2024 surge in wholesale inflation was broad-based, with inflation across various categories rising. The key drivers included:
Impact on Consumers
Wholesale inflation typically has a trickle-down effect on retail prices, which are more directly felt by consumers. Higher wholesale prices can lead to increased costs for businesses, which may be passed on to consumers in the form of higher prices.
Government Response
The Reserve Bank of India (RBI) has been closely monitoring inflation. It has already raised interest rates twice in 2024 to combat inflationary pressures. The government has also taken measures to increase the supply of essential commodities and reduce import dependence.
Top 5 FAQs
After over two years of construction, the Delhi government has announced the eagerly awaited inauguration of the Ashram flyover extension on March 06, 2023. The six-lane extension, which cost Rs 128.25 crore, will provide a faster and smoother commute, reducing travel time and congestion for nearly 13,500 vehicles during peak hours. This is part of Delhi's larger plan to revamp its roads, with an initial budget of Rs 4,500 crore and an annual expenditure of Rs 2,000 crore in the future.
In a timely decision, the WHO has urged governments to ban all flavours in tobacco and nicotine products, including cigarettes, pouches, hookahs, and e-cigarettes, a day before World No Tobacco Day. The use of flavours masks the harshness of these products, making them more appealing to the youth and leading to addiction and serious health problems. The publication by WHO reveals the tactics used by the tobacco industry to attract new users and calls for bold action to address this global epidemic.
Anmol Singh Jaggi and Puneet Singh Jaggi, co-founders of Gensol Group, have resigned after SEBI barred them from securities market over allegations of a massive loan fraud. The brothers allegedly diverted a significant portion of Rs 978 crore, meant for buying electric vehicles, for personal use. This scandal not only puts a question mark on their integrity but also adversely affects their other venture, BluSmart - India's first all-electric cab service.
In a recent podcast with Sri Adhikari Brothers' MD Kailash Adhikari, Ashish Kumar Chauhan, MD and CEO of NSE, shared insights on India's emergence as the world's IT capital. He highlighted the country's exceptional talent pool and how technology has been a key driver of India's growth story. Chauhan also discussed India's strong service economy, with giants like TCS and Infosys boasting massive workforces. Furthermore, he noted that India's resilient economy and strong balance of payments has made it a hub for cost-effective and high-quality work for global corporations like Microsoft and Google.
India's Growth Without Distribution Reflects as Mere Inflation, Says Hotmail Co-Founder Sabeer Bhatia, co-founder of Hotmail, recently called out India's position as the 4th largest economy in the world, pointing out the stark contrast between this status and the reality of a large section of the population living in poverty and struggling to survive. In a scathing tweet, Bhatia questions the distribution of this growth and emphasizes the need for critical thinking skills to truly empower the country. While he believes that India has the potential to embrace the next intellectual property revolution, he warns against the old ways of rote learning and memorization, stating that it will be useless in the face of this new era.
Indian retail brand Zudio has been making waves in the country's fashion industry with its impressive expansion in tier 2 and 3 cities. Despite tough competition from established brands like Reliance Trends, Zudio has managed to outpace them with its unique approach of blending Indian tastes with fast fashion. By using bulk production and a direct supply chain, Zudio is able to offer trendy clothes at affordable prices, making it a hit with consumers. With its efficient FOCO model, Zudio is able to rapidly expand its presence in the country without burning a hole in its pocket.
With Black Friday deals in full swing, Engadget’s go-to fitness tracker, the Fitbit Charge 6, is currently discounted to its lowest price ever. The Charge 6 is highly recommended for its extensive exercise tracking capabilities, built-in GPS, and new features like the more accurate heart rate sensor and Bluetooth pairing with exercise machines. While not as advanced as a smartwatch, the Charge 6’s comfortable wear and long battery life make it a top pick for fitness enthusiasts. Other Black Friday deals for fitness gadgets, including the discounted Theragun Mini 2.0, can be found in Engadget’s roundup.
On Thursday, Dalal Street is expected to make a positive start to the session with a surge in GIFT Nifty futures, indicating a higher opening for the Nifty50 index. This comes after mostly positive moves across major Asian markets, where investors were cheered by the news of a federal court ruling restricting US President Donald Trump's tariffs from taking effect. The back and forth trade policy followed by pauses and U-turns by the US and its trade partners has kept investors on edge, making any positive news a welcome relief. Despite overnight losses on Wall Street, Dow Jones futures saw a surge after the news, indicating a positive start for the day on Dalal Street.
In a major turnaround, state-run telecom provider BSNL has reported profits for two consecutive quarters, a marked improvement from its previous struggles. The company's resurgence is attributed to a mix of financial discipline, operational streamlining, and government support, which have allowed it to make progress on its delayed 4G rollout and expand its FTTH services in underserved areas. BSNL's future plans include completing its 4G deployment and increasing its subscriber base, posing a challenge to private players like Reliance Jio and Bharti Airtel. This success story serves as a reminder of the potential of public sector enterprises with the right vision and support.
Fox News Network is reaching out to military and first responders with exclusive deals on their streaming service, Fox Nation. The offers are available to those who qualify and can be accessed by contacting online representatives through a provided link. This move by Fox reflects a growing trend in the media industry to cater to niche audiences and show support for those who serve their country and communities.