India’s economy, it seems, has entered the stagflation phase with the key macro-economic data showing dwindling manufacturing activity as the subdued demand conditions contracted the October factory output by 3.8 per cent.
US consumer prices jumped by the most in seven months in October, which together with abating fears of a recession, support the Federal Reserve’s signal for no further interest rate cuts in the near term.
Brazil’s economy likely expanded by 0.4% in the third quarter, according to a Reuters survey of economists, consolidating a steady, if unspectacular, pace of growth ahead of an anticipated upswing into the year end.
Input price inflation in the Egyptian non-oil private sector eased to one of the weakest rates on record in November, according to the latest survey data.
China has decided to keep its inflation target unchanged this year at around 3 per cent, sources said, suggesting policymakers will continue to roll out economic stimulus gradually and avoid more aggressive measures.
Turkey’s annual inflation rate rose slightly more than expected to 11.84 per cent in December, official data showed on Friday, ending the year close to a government target and probably narrowing the window for more interest rate cuts in 2020.
The Reserve Bank of India (RBI) kept rates steady and left the door open for more monetary easing on Thursday, as it sought to support faltering economic growth and avoid stoking already heightened inflation levels.
Despite recent strength in India’s factory sector, the Monetary Policy Committee said economic activity in India “remains subdued and the few indicators that have moved up recently are yet to gain traction in a more broad-based manner.”
IMF has cautioned that if inflationary pressure continues, there will be limited room for RBI to cut interest rates to support growth. “On monetary policy, given the sharper-than-expected slowdown
Inflation in Poland rose faster than expected in January, statistics office data showed on Friday, hitting its highest point since 2011 in a reading that is likely to intensify debate about interest rates in central Europe’s largest economy.