Retail inflation climbs to 2.57%, factory output decelerates to 1.7%

People walk through The Shops at Columbus Circle mall in New York U.S

Retail inflation rose to a four-month high of 2.57 per cent in February but the prospects for a rate cut has brightened as the number is still below the RBI's inflation target of 4 per cent, while industrial growth declined to below 2 per cent in January. Policy makers will release updated quarterly projections for interest rates as well as inflation, growth and employment when they gather March 19-20.

The annual rate of inflation in food prices, which account for about half of the consumer price index (CPI), also increased to (-) 0.66 per cent in February 2019 from (-) 2.17 per cent in January.

Economists had predicted consumer price index at 2.43 per cent for February, according to a poll by news agency Reuters.

"Although inflation has slowed in recent months, it should move gradually higher in the spring and summer", said Gus Faucher, chief economist at PNC Financial Services.

The Fed has a 2 per cent target for a separate inflation gauge from the Commerce Department that's linked to consumer spending.

Excluding the volatile food and energy components, the CPI edged up 0.1%, the smallest increase since August 2018. Food inflation was in the negative at 0.66 per cent.

On Tuesday, February's CPI data will be released. Such figures give President Donald Trump another opportunity to claim credit for lower pharmaceutical prices, an issue that he's recently tweeted about several times. Core prices were up 2.1% on the year, a pace last matched in October. The so-called core CPI had increased by 0.2 per cent for five straight months. It hit the US central bank's 2 percent inflation target in March a year ago for the first time since April 2012.

Prices of fruits (-4.62 per cent) and vegetables (- 7.69 per cent) continued to decline in February.

Energy prices rose 0.4%, the first increase in four months, as gasoline prices advance 1.5%. Annual wage growth jumped 3.4% in February, the biggest increase since April 2009, from 3.1% in January. Consumers paid more for motor vehicle insurance, airline fares, household furnishings and personal care products. Clothing prices plunged 1 percent in February, while new-auto prices slipped 0.2 percent.

Related News:



Most liked

Seahawks to sign free agent kicker Jason Myers
The Seahawks clearly have had a change of heart and that's probably because Myers is coming off the best season of his career. Myers has also struggled on extra points since the National Football League moved the kick back in 2015.

Lori Loughlin's Daughter Vacationed On USC Trustee's Yacht As Scandal Broke
CNN reports that 50 people were charged in investigation which - incredibly - went by the name "Operation Varsity Blues". Olivia Jade has attended USC since late 2018, but now her place at the school has been thrown into question.

Budget Chief Defends Spending Cuts, Strong Growth Projections
The Trump administration predicts a savings of $130 billion over the next decade if Congress enacts the proposal. It's common for administrations of both political parties to propose cuts in Medicare payments to hospitals.

Stephen Hawking's life is set to be celebrated with a 50p coin
Hawking's children Lucy and Tome Hawking visited the Royal Mint to see the coin . Stephen Hawking has been featured on a new 50p coin.

Michelle-wie-engaged-warriors-jonnie-west-lpga
Wie, 29, and West, 30, went public with their relationship in January, so it hasn't taken West very long to pop the question. It stemmed from a vehicle accident two years ago that she is still receiving treatment for off the links .

NASA's Opportunity Rover took one final stunning 360 degree panorama of Mars
Opportunity was part of the Mars Exploration Rovers program that called for two identical machines to be sent to Mars. The trailblazing mission ended after almost 15 years of exploring the surface of Mars, but its legacy will live on.

Lionel Messi: Cristiano Ronaldo had a magical night against Atletico Madrid
The draw for the quarter-finals will take place at the House of European Football in Nyon, Switzerland, on Friday. Messi was quoted by Marca as saying after the Lyon game: "What Cristiano Ronaldo and Juventus did was impressive".

Gambino crime kingpin Frank Cali shot dead in New York
Some of the indictments included murder, drug trafficking, robbery and extortion, according to The Mob Museum . The appointment allowed Cali to join the ranks of former leaders like John Gotti and Carlo Gambino .

Conor McGregor's Alleged Victim Details Phone Incident
After taking the phone, reports state McGregor stomped on it before picking it back up and walking away. McGregor's fighting career has been on hold since UFC 229 in October.

Kane williamson rushed to hospital
New Zealand scored at over five runs per over during their innings, which was declared in the 85th over. But his share of the record lasted only minutes before Taylor reached his 31st half century.

Rahul Gandhi assures 33% quota for women in govt jobs
Your biggest teachers are the people who attack you, the people who abuse you. He promised, if the party came into power in 2019, to solve that.

AirPods, wireless headphones could cause cancer, scientists claim
But: the animals were exposed to in experiments of high-frequency radiation, were in above-average mass of genetic, neurological, and reproductive damage.

Senate votes to end U.S. support of Yemen war
Sanders, using unusually blunt language about an American ally, said the United States should not "simply follow the despotic lead of a government in Saudi Arabia".

An eye exam could one day provide early diagnosis of Alzheimer's
A study at Duke Eye Center may have found a suitable method, however, and it involves small blood vessels in the retina. It may get trapped in the deposits of another protein called amyloid that is commonly associated with in the disease.

US prosecutors probing Facebook's data deals
Those deals, which were previously examined by the NYT , allowed companies to access Facebook features from their own services. The US Attorney's Office for the Eastern District of NY declined to confirm or deny the investigation's existence.