Published: Thu, April 13, 2017
Medical | By Garry George

India's March retail inflation rises to 3.81% month-on-month

India's March retail inflation rises to 3.81% month-on-month

Rwanda's consumer price index (CPI), which the country uses to gauge inflation, eased to 7.7 per cent in March year-on-year, down from 8.1 per cent registered in February.

United Kingdom unemployment fell to its lowest since 1975 in the three months to the end of February - but wage growth fell again, suggesting workers are about to be hit by a "perfect storm" of high inflation and weakening pay increases.

Food prices, the biggest component of the consumer price index (CPI), fell by 4.4 percent and remained the major drag. Costs for health care, housing, transportation and communication all were seen rising.

"Reflation is close to a turning point", Larry Hu, head of China economics at Macquarie Securities Ltd., told Bloomberg.

In the East of England, a near record 3.03m people were in work and the unemployment rate dropped by 0.3% to 4.3% in the three-month period - well below the national rate of 4.7%.

United Kingdom food prices saw their biggest annual increase in three years in March, according to the Office for National Statistics.

NISR attributed this to rising prices of food and non-alcoholic beverages which increased by 16.0 per cent and 2.5 per cent, respectively.

Ian Kernohan, economist at Royal London Asset Management, said: "The later date of Easter this year will have held back prices in March, thanks to the lower air fares". The corresponding provisional inflation rate for rural area was 3.75% and urban area 3.88% in March 2017 as against 3.67% and 3.55% in February 2017. Accordingly, we continue to think that CPI inflation will climb to about 3.5% by the end of this year, thereby peaking earlier and higher than the MPC expects.

"Goods inflation has been accelerating rapidly over the last five months and is at its highest rate since June 2013, while food price inflation is starting to filter through, with prices 1.6 per cent higher last month relative to a year ago - the fastest rate of food price inflation in two years".

The Office for National Statistics (ONS) reported that average wages, when the effects of bonuses were excluded, grew by 2.2% in the three months to February.

Nina Skero, managing economist at the Centre for Economics and Business Research (Cebr), said households will increasingly feel the pinch as wage growth struggles to keep pace with inflation. The programme also cut subsidies and imposed new taxes such as the Value-Added Tax, with the aim of reaching a higher growth rate and decreasinf the budget deficit to 9.1 percent of Gross Domestic Product (GDP) in the coming fiscal year 2017/18.

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