State-level inflation data for items likely in new CPI series
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
Do mangoes cost more in Uttar Pradesh or in Maharashtra? How much more is a consumer in Assam paying for tomatoes than his or her counterpart in Andhra Pradesh.The statistics ministry is planning to release state-level inflation data for individual items in the new Consumer Price Index (CPI) series, along with rural and urban breakdowns at the national scale, a move that will allow experts to gain insights into price trends across different commodities in each state.While such data is used to compile the inflation index , it has not been available in the public domain.Currently, state-wise inflation data is available only at the sub-group level, such as vegetables, fruits and personal care. Item-specific figures within these categories are published at the all-India level."We are planning to provide item-level data by state, along with rural and urban breakdown at the national level, as recommended by the expert group and demanded by the RBI (Reserve Bank of India) too," the official said. The exercise is part of the ministry's initiative to enhance transparency in data by disseminating granular level data in the public domain.The revamped Consumer Price Index series will be released in the first quarter of 2026, with 2024 as the new base year. The revised item weights will be drawn from the HCES 2023-24. At present, the base year is 2012.In May, retail inflation slowed to a 75-month low of 2.8%, helped by a decline in food prices.Out of 36 states and union territories, 19 reported higher inflation than the national average. Goa reported the highest rate at 6.8%, followed by Kerala (6.5%), Lakshadweep (6.2%), Punjab (5.2%), and Daman & Diu and Jammu & Kashmir (4.6% each). Official figures for June will be released on July 14.Cost of consumer services, such as telephone bills (mobile and landline), water charges, washerman and barber fees, legal expenses, and plumbing charges are also likely to be included in the new series. The aim is to enhance coverage of services data, the official said. "If the items have a significant weight, we will include it."According to the Household Consumption Expenditure Survey (HCES) 2023-24, consumer services excluding conveyance accounted for 5.3% of the average monthly per capita consumption expenditure in rural areas and 5.7% in urban areas.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
21 minutes ago
- Time of India
Rupee bond binge by Indian firms poised to slow after record run
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel India's busy local-currency rupee bond market is poised to slow after the country's central bank hinted room for further rate cuts could be liquidity infusions and a series of rate cuts this year, most recently a surprise 50 basis point cut to 5.5% in June, pushed yields to the lowest in three years and spurred a flurry of issuance as borrowers sought to lock in lower a result, Indian companies raised a record 6.6 trillion rupees ($77.1 billion) through local-currency notes in the first half of the year, up 29% from the year prior, according to data compiled by now expect that rush to ebb, citing a policy shift by the Reserve Bank of India to neutral from accommodative and moderating growth prospects. Headwinds from trade and geopolitics are threatening the nation's economic outlook too.'Issuance will remain fairly strong, but the pace will not be as frenetic as before,' said Shameek Ray, executive vice president at ICICI Securities Primary Dealership Ltd., pointing to limited room for borrowing costs to fall on Indian debt have since started to climb. After touching the lowest since 2022 on June 6, average yields on top-rated three-year company notes have risen 13 basis points, as of the recent increases have only pared the drop in financing costs this policy emerged as the key driver for corporate debt sales in India this year as falling rates lured conglomerates to the market. Grasim Industries Ltd. secured its lowest-cost onshore note since 2020 and the ports unit of Adani Group raised a record sum from the domestic bond market. Jio Credit Ltd., a shadow lender owned by tycoon Mukesh Ambani, sold its first-ever bond.'Inquiries from companies about bond fundraisings have increased,' said Jigar Vaishnav, director at Tipsons Group. 'Abundant liquidity and cheaper borrowing costs have also prompted many companies to borrow locally rather than tapping offshore. It has been a very busy time on the desk.'Still, global uncertainties and weaker capital spending due to slower economic growth could hurt corporate bond sales in the second half of the year, said Aditi Mittal, director at A.K. Capital Services Ltd. , the third biggest rupee bond banker this year.'We expect the second half may see some slowdown from the current pace, given the expected longish pause in monetary policy,' she may choose loans over bonds as banks pass on the interest rate cuts by lowering lending rates, diminishing issuance, added ICICI Securities' Ray.
Economic Times
25 minutes ago
- Economic Times
RBI to conduct Rs 1 lakh cr VRRR auction to absorb surplus liquidity
Additionally, the impact of the CRR cut, which is expected to release ₹2.5 lakh crore of primary liquidity starting September till December 2025, is yet to hit system liquidity. Synopsis The Reserve Bank of India will conduct a 7-day variable rate reverse repo (VRRR) for ₹1 lakh crore on July 4 to absorb surplus liquidity, which surged to ₹3.75 lakh crore. Government spending and previous liquidity measures have contributed to this surplus. Mumbai: The Reserve Bank of India will hold 7-day variable rate reverse repo (VRRR) for ₹1 lakh crore on July 4 - a move aimed to absorb surplus liquidity from the banking system. It was at a surplus of ₹3.75 lakh crore on July 2, its highest since July 2022, as government spending picked up as the first quarter of the fiscal year ended. ADVERTISEMENT The TREPS rate stood at 5.12% on Thursday, while the call rate stood at 5.26%. VRRRs increase the cost of liquidity, making these rates inch up. The standing deposit facility (SDF) rate is at 5.25% The Reserve Bank has injected durable liquidity amounting to about ₹9.5 lakh crore through liquidity measures since January 2025, which led to system liquidity transitioning from deficit to surplus at end-March 2025. Additionally, spending from the government picked up, with the governments' cash surplus decreasing to ₹2.9 lakh crore as of June 27, from ₹3.6 lakh crore on May 30, according to IDFC First Bank. The governments' capital expenditure was ₹1.6 lakh crore in April, according to the latest RBI bulletin. "Such aggressive government spending in April suggests a deliberate strategy to front-load expenses and stimulate private investment, which is still lagging despite ample monetary easing," said Mataprasad Pandey, vice president at Arete Capital Services. "The monthly capex run-rate needed to meet the annual target is around ₹93,400 crores, making the April expense very encouraging," Pandey the impact of the CRR cut, which is expected to release ₹2.5 lakh crore of primary liquidity starting September till December 2025, is yet to hit system liquidity. The RBI dividend of ₹2.69 crore, too, is yet to be spent, which would increase system liquidity, economists said. ADVERTISEMENT "Once the full impact of the dividend is visible, we will have the CRR cut from September to November and liquidity can go up to ₹5 lakh crore by November 2025. So, RBI would likely do more of VRRRs and focus on transmission, with the intent to get the treps rate above the SDF rate, rather than getting the call rate to repo rate," said Gaura Sen Gupta, chief economist at IDFC First Bank. (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
Economic Times
39 minutes ago
- Economic Times
Rupee bond binge by Indian firms poised to slow after record run
India's busy local-currency rupee bond market is poised to slow after the country's central bank hinted room for further rate cuts could be limited. ADVERTISEMENT Aggressive liquidity infusions and a series of rate cuts this year, most recently a surprise 50 basis point cut to 5.5% in June, pushed yields to the lowest in three years and spurred a flurry of issuance as borrowers sought to lock in lower rates. As a result, Indian companies raised a record 6.6 trillion rupees ($77.1 billion) through local-currency notes in the first half of the year, up 29% from the year prior, according to data compiled by Bloomberg. Underwriters now expect that rush to ebb, citing a policy shift by the Reserve Bank of India to neutral from accommodative and moderating growth prospects. Headwinds from trade and geopolitics are threatening the nation's economic outlook too.'Issuance will remain fairly strong, but the pace will not be as frenetic as before,' said Shameek Ray, executive vice president at ICICI Securities Primary Dealership Ltd., pointing to limited room for borrowing costs to fall on Indian debt have since started to climb. After touching the lowest since 2022 on June 6, average yields on top-rated three-year company notes have risen 13 basis points, as of Wednesday. ADVERTISEMENT Still, the recent increases have only pared the drop in financing costs this year. Monetary policy emerged as the key driver for corporate debt sales in India this year as falling rates lured conglomerates to the market. Grasim Industries Ltd. secured its lowest-cost onshore note since 2020 and the ports unit of Adani Group raised a record sum from the domestic bond market. Jio Credit Ltd., a shadow lender owned by tycoon Mukesh Ambani, sold its first-ever bond. ADVERTISEMENT 'Inquiries from companies about bond fundraisings have increased,' said Jigar Vaishnav, director at Tipsons Group. 'Abundant liquidity and cheaper borrowing costs have also prompted many companies to borrow locally rather than tapping offshore. It has been a very busy time on the desk.' Still, global uncertainties and weaker capital spending due to slower economic growth could hurt corporate bond sales in the second half of the year, said Aditi Mittal, director at A.K. Capital Services Ltd., the third biggest rupee bond banker this year. ADVERTISEMENT 'We expect the second half may see some slowdown from the current pace, given the expected longish pause in monetary policy,' she said. Companies may choose loans over bonds as banks pass on the interest rate cuts by lowering lending rates, diminishing issuance, added ICICI Securities' Ray. (You can now subscribe to our ETMarkets WhatsApp channel)
