As inflation shoots up, India Inc seeks lower lending rates

As inflation shoots up, India Inc seeks lower lending rates

As inflation shoots up, India Inc seeks lower lending rates

The producer price index (PPI) rose 6.9 percent year-on-year in January, according to the National Bureau of Statistics, outstripping an economist estimate of a 6.5 percent increase in a Bloomberg News survey.

Higher oil prices across the globe led the rise, causing the price of fuel to increase.

CHINA'S consumer and factory inflation was warmer than expected in January, driven by holiday effects. He expects WPI inflation to average 5.5 per cent in Q4FY17 and 3.6 per cent in FY2017.

The EU measure of inflation, or HICP, climbed 1.9 percent yearly in January, faster than the 1.7 percent rise in the prior month.

The pickup in prices, which also reflected higher retailer and wholesaler margins, is the latest signal that broader inflation continues to move toward the goal of Federal Reserve policy makers. Grocery prices were unchanged, but the cost of eating out rose 0.4 percent.

The annual rate of inflation based on monthly WPI, stood up at 5.25% for January 2017 over the same period a year ago and 3.39% for the previous month (December), official data said today.

Inflation pressure remains, however, as the price paid for raw materials by United Kingdom manufacturers jumped 20.5% on the year, the fastest annual pace since September 2008.

A 7.8 percent jump in gasoline prices accounted for almost half the increase.

Last month, prices for final demand goods increased 1.0 percent, the largest rise since May 2015.

Consumer prices in the United States jumped in January by the most since 2013 as higher oil prices continue to make their impact around the world.

Howard Archer, chief United Kingdom economist at forecaster IHS Global Insight, said: 'Inflation is expected to have been lifted in January by higher fuel prices and increased food prices'. However, fuel group inflation accelerated 18.14% in January from 8.65% a month ago, due to rising petrol and diesel prices. When prices rise too sharply, it's a sign that money is flowing too easily into the economy and that the Fed would likely raise rates to tamp down on borrowing.

The main contributor to the increase was the rising price of motor fuel, which went up 3.4% between December and January. The urban inflation recorded at 3.17 per cent in the month under-review against 4.81 per cent.

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