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Inflation eats away at wages, posing risk to consumer spending

Global food prices reach near four-year high in September amid supply disruptions

• The UN FAO said global food prices hit their highest level in nearly four years
• Trade disruptions and adverse weather drove the rise
• Higher food costs may pressure Indian food companies and complicate inflation trends for consumer businesses

RBI Rate Hike Ahead? SBI Research Flags Inflation, Rupee Risks For October MPC

• SBI Research expects the RBI to begin raising rates in October
• It cites inflation, rupee weakness, global risks and tighter liquidity
• Higher-rate expectations may weigh on Indian borrowers and rate-sensitive stocks

SBI economists expect RBI to raise repo rate 25 bps to 5.50%

• The MPC meets October 5-7 to decide on interest rates
• Economists cite rising inflation and global concerns behind the expected hike
• A rate hike would lift borrowing costs for Indian banks, autos and other rate-sensitive sectors

Falling wages, soaring energy prices and inflation: It’s beginning to look a lot like the 1970s

• The article compares current falling wages, rising energy prices and inflation with the 1970s
• It asks whether investors should return to the financial playbook used during that decade

Inflation target should align with advanced economy average of 2%: Patra

• Patra says India’s inflation target should align with the advanced-economy average of 2%
• He says anti-inflationary monetary policy makes the biggest contribution to growth
• A 2% target could affect RBI rate policy and Indian banks, lenders and rate-sensitive stocks

10 years of inflation targeting: How elephant was driven away to the jungle

• India’s inflation-targeting framework has anchored price expectations
• Economists see scope to refine the framework’s mandate
• Inflation-targeting changes could affect rate expectations for Indian banks and rate-sensitive stocks

Govt should have made RBI's 2022 inflation failure report public: Janak Raj

• Janak Raj said the government should have made public the RBI’s 2022 inflation failure report
• He said India is still early in reaping the benefits of flexible inflation targeting
• Inflation-targeting credibility matters for Indian banks and rate-sensitive stocks

MPC external members should be appointed full-time, says Chetan Ghate

• Chetan Ghate said external members of the MPC should be appointed full-time
• He said flexible inflation targeting has established a credible nominal anchor
• MPC appointment and coordination proposals matter to Indian rate expectations and interest-sensitive sectors

Euro zone inflation surges more than expected, keeping pressure on ECB to hike rates

Drought fears escalating: How 13% rain deficit threatens crop yields & food inflation

MPC internal members must think independently of RBI: Ashima Goyal

• Ashima Goyal says MPC members should think independently of the RBI
• The inflation-targeting band gives the MPC flexibility to look through temporary food inflation
• MPC independence and its approach to food inflation matter to rate-sensitive Indian stocks and banks

Fed's Lisa Cook flags AI-driven inflation as a top 2027 risk

• Cook joined a unanimous vote last month to raise the policy rate by a quarter-point
• The Fed said the increase would support a timelier return of inflation to its 2% target
• US rate expectations can affect foreign flows into Indian equities

SBI Research sees CPI inflation at 5.65% in Sept, above 6.5% in Oct-Nov

• SBI Research forecasts CPI inflation at 5.65% in September
• It expects inflation to exceed 6.5% in October and November
• Higher inflation may constrain rate cuts, affecting Indian banks and rate-sensitive stocks

'Best practices require publication of RBI letter on inflation target miss'

• Core inflation helps assess persistent inflationary pressures and the likelihood of second-order effects
• Inflation assessment can influence RBI rate decisions, affecting Indian banks and rate-sensitive stocks

Fuel inflation explained: How changes in petrol, CNG, LPG and PNG prices could affect your household budget

• Fuel-price changes can affect household budgets differently, depending on cooking and commuting fuel

Euro-Zone Inflation Tops Estimates to Hit Three-Year High

Global Food Prices Rise as Cereal and Sugar Costs Surge, UN Says

• Transport disruptions and weather concerns have constrained supplies and lifted crop-based commodity prices
• Higher food costs may pressure Indian consumers and food companies’ margins

Eurozone inflation hits its highest level in three years at 3.8% as energy costs soar

• Eurozone annual inflation reached 3.8%, its highest level since September 2023
• Higher European energy costs may pressure Indian exporters and raise imported inflation risks

ETMarkets Smart Talk: Rupee under pressure, inflation sticky: Will RBI be forced to rethink rates? Ankita Pathak, Ionic Asset

• The Fed is entering a tightening cycle as the rupee remains under pressure
• Inflation shows signs of persistence, complicating India’s monetary policy trade-off
• Rupee and inflation pressures shape RBI policy; banks and rate-sensitive Indian stocks are exposed

Pension, rent, or SWP: Which income stream stays useful for a 25-year retirement?

ECB's Rehn says soaring yields may curb inflation impact of expensive energy

European shares edge higher after bond-driven selloff as investors await inflation data

• European stocks made a modest recovery after a sharp selloff
• Investors are focused on upcoming inflation data

Economists Warn Of 5% UK Inflation If US Diesel Ban Goes Ahead