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

U.S. drops 'Israeli-occupied' from Syria's Golan Heights and Palestinian territories
In a human rights report released on Wednesday, the department failed to refer to the Golan Heights and the West Bank as occupied territories .

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.

" "2019 iPad 10.2" and non-Pro 10.5" tablets tipped to launch separately
If Netflix and Amazon were not enough for you, Apple is set to join the league of video streaming services. The event will be live streamed on the 25th of March, and we will be covering it live as per usual.

Kerr acknowledges cursing out of frustration with Green | AP sports
While it's not clear the exact words Kerr used, many speculated that the coach said he was exhausted of "Draymond's s-". There are certain realities in the relationship between players and coaches, and he's fully aware of it.

Klopp delighted to put Liverpool back on the map
There were not too many hard situations in and around our box and that is a massive sign. 'You have to find different ways. Maybe we're being a bit harsh on Neuer here. 'There are some places in the world where whichever team would struggle.

Malaysia rejects call to free Vietnamese accused in Kim Jong Nam killing
Huong looked exhausted and was sobbing as she spoke to Vietnamese Embassy officials after Thursday's court hearing ended. Prosecutors in court Thursday gave no explanation why they refused to drop the murder charge against Doan Thi Huong.

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 .

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.

Struff stuns ailing Zverev to reach Indian Wells 4th round
Alexander Zverev crashed out of the Indian Wells Masters , while rain wreaked havoc for world number one Novak Djokovic . While Japanese world number one Naomi Osaka progressed to the fourth round with victory over American Danielle Collins.

Odell Beckham Jr. brings big name, big plays to Browns
Jones, who has been with NFL Network since 2012, said this is the Beckham she hopes the world will get to know in Cleveland. Next, the team chose to let star safety Landon Collins walk in free agency without getting any compensation for him.

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.

Facebook and Instagram are down for some users. Here's how Twitter reacted
Facebook users logging on to social media site reported getting a message stating that the site was doing "required maintenance". According to Downdetector .com, a large spike in reports of problems with Facebook happened just before noon.