German Inflation Accelerates As Estimated In January
- Author: Patricia Jimenez Feb 17, 2017,
Feb 17, 2017, 0:20
Wholesale prices for gasoline jumped 12.9 percent over the past month and 32.3 percent over the past year. Inflation in diesel and petrol shot up to 31.10 percent and 15.66 percent during the month.
Nonetheless, analysts still expect prices to rise rapidly in the year ahead, peaking with inflation at around 3pc. Bond yields rise as prices fall. Liquefied natural gas (LNG) is used for power generation.
Much of the pick up in consumer prices was likely due to higher food and travel costs heading into the long Lunar New Year holiday, the National Bureau of Statistics (NBS) said.
Sales patterns may have contributed to this, as the proportion of items on sale increased by more between December 2016 and January 2017 than it did a year ago, ONS said.
A gauge of major world markets climbed to a record on Wednesday and U.S. Treasury yields rose as a strengthening economic outlook and recent commentary by Federal Reserve officials increased expectations of an interest rate hike in March.
Industry chamber Ficci said the industrial economy is still weak and there is a need to improve the flow of credit to manufacturing and infrastructure sectors.
Prices started to pick up following the Bank of England's decision to cut interest rates in the aftermath of the UK's vote to leave the European Union, and the fall in the value of the pound.
It seems it would take hard evidence to prove that the global supply of crude oil is dwindling enough to motivate a higher price for the commodity. The core index (excluding food and energy) rose 0.3 percent in January, bringing its rate of increase over the previous year to 2.3 percent.
Food inflation was in the negative zone for the second month running, with index down 0.56% in January from that a year ago.
Economists polled by Reuters expected last month's annual retail inflation to come in at 3.22 percent, compared with 3.41 percent in December.
Food prices showed the smallest annual decrease since July 2014 as the cost of chocolate and candies rose by nearly five per cent on the month. That followed a 0.1 percent gain in December.
While the rate of price rise in sugar was 22.83 percent, for fibres it was 15.18 percent, and 25.44 percent for minerals.
When asked whether he is disappointed with the change in stance of RBI from accommodative to neutral, Jaitley said: "All finance minister have a perpetual desire".