Watch: Inflation has slowed, but are you still paying more than the official data suggests?
The Consumer Price Index (CPI) tracks a fixed basket of goods and services, like food, clothing, housing, and fuel, to measure inflation and purchasing power. It was originally designed to adjust wages for workers, but today, it's a key tool for the RBI in setting inflation targets and monetary policy.
So what goes into that CPI basket—and does it really reflect how you're spending?
Script & Presentation: K. Bharat Kumar
Production: Shibu Narayan
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Mint
an hour ago
- Mint
₹27,000 crore worth government securities fully subscribed on Friday
Mumbai (Maharashtra) [India], July 18 (ANI): The central government on Friday auctioned securities worth total ₹ 27,000 crore ( ₹ 15,000 crore maturing in 2030 and ₹ 12,000 crore maturing in 2054). According to Reserve Bank of India (RBI), the government securities was subscribed to in entirety. The 2030 maturing bond will yield 6.01 per cent annualized returns, and 7.09 per cent for the 2054 maturing bond. The underwriting auction was conducted through multiple price-based method today. Primary Dealers have submitted their bids for auction electronically through Core Banking Solution (E-Kuber) System between 09:00 A.M. and 09:30 A.M. on the day of underwriting auction (today). The underwriting commission will be credited to the current account of the respective primary dealers with RBI today itself. Primary dealers are registered entities with the RBI who have the license to purchase and sell government securities. Recently, as many as twelve Indian states raised a total of ₹ 26,900 crore in the latest auction of State Government Securities (SGS), RBI data showed. All participating states accepted the full amount they had notified for the auction. Maharashtra led the fundraising drive, mobilising ₹ 6,000 crore through four securities. The state offered yields of 7.12 per cent for a 22-year security, 7.13 per cent for a 23-year security, 7.15 per cent for a 24-year security and 7.16 per cent for a 25-year security. Following Maharashtra, Andhra Pradesh raised ₹ 3,600 crore through two securities of ₹ 1,500 crore and ₹ 2,100 crore against a lower yield of 6.87 per cent and 6.88 per cent for tenures of 8 and 9 years, respectively. Uttar Pradesh raised ₹ 3,000 crore through one security at a yield of 6.86 per cent for a tenure of 8 years. Uttar Pradesh is followed by Telengana and Punjab, both of which raised ₹ 2,500 crore each. Punjab also gave the highest yield on its security of 7.19 per cent for a tenure of 24 years. Telangana's ₹ 2,500 crore was through three securities, two of ₹ 1,000 crore each, the first at a yield of 7.10 per cent for 32 years and the second at a yield of 7.09 per cent for a tenure of 35 years. The third security of ₹ 500 crore was raised by the state for 38 years at a yield of 7.09 per cent. West Bengal, Gujarat and Bihar raised securities worth ₹ 2,000 crore each. West Bengal at a yield of 7.07 per cent for a tenure of 12 years, Gujarat with a yield of 6.80 per cent for a tenure of nine years and Bihar with a yield of 6.90 per cent for a tenure of 10 years. Other participants in the auction included Odisha, which raised ₹ 1,500 crore through two securities of ₹ 1,000 crore and ₹ 500 crore. First at a yield of 6.98 per cent for a tenure of 12 years and second at 6.13 per cent for a tenure of three years, respectively. Tamil Nadu raised ₹ 1,000 crore through a security with a yield of 6.82 per cent for a tenure of 10 years. Goa raised ₹ 100 crore at 6.89 per cent for a tenure of 10 per cent. RBI had conducted this yield-based auction as part of its regular borrowing calendar for states, helping them meet their capital expenditure and fiscal needs. (ANI)
Economic Times
2 hours ago
- Economic Times
India bonds flat, traders eye debt supply for cues
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Time of India
2 hours ago
- Time of India
India bonds flat, traders eye debt supply for cues
Indian government bonds remained steady, holding a key level ahead of New Delhi's debt sale and the RBI's cash withdrawal operation. Sentiment was aided by expectations of strong demand in the auction and a fall in U.S. yields. The focus is on the demand for the shorter-end bonds and potential liquidity tightening due to GST and the RBI's VRRR auction. Tired of too many ads? Remove Ads Bond yields move inversely to prices. Tired of too many ads? Remove Ads RATES Indian government bonds were steady in early deals on Friday, clinging to a key level ahead of New Delhi's debt sale and the central bank's cash withdrawal yield on the benchmark 10-year bond was at 6.2993% as of 10:00 a.m. IST, compared with the previous close of 6.3010%."We are expecting a strong demand in the auction, which is aiding sentiment. If the auction goes well, we can see a further rally in bonds," a trader at a primary dealership said."U.S. yields have come down, and there has been some buying from foreign banks, which is supporting the market."The yield on the U.S. 10-year bond fell 3 basis points to 4.4354% in Asian hours, compared with Thursday's close of 4.4630%.New Delhi will sell bonds worth 270 billion rupees ($3.14 billion), which includes a new five-year paper and a 30-year bond Focus will be on the demand for the shorter-end, which will reflect in the cut-off price of the new five-year, traders also expect some liquidity tightening due to cash outflows related to GST and the Reserve Bank of India 's variable rate reverse repo (VRRR).The RBI will conduct a seven-day VRRR auction worth 2 trillion rupees on may push the weighted average interbank call money rate to around 5.50%, closer to the repo rate as intended by the central daily average liquidity surplus in the banking system dropped close to 2.9 trillion rupees this week, versus 3.5 trillion rupees last week, RBI data shorter-duration overnight index swap rates (OIS) were not traded yet, while the 5-year rate inched lower, tracking a decline in U.S. Treasury yields The one-year OIS rate was at 5.51% and the two-year OIS rate was at 5.48%. The liquid five-year fell 1 basis point to 5.72%. ($1 = 85.9840 Indian rupees).
