RBI Cautions On Food Price Volatility Despite Sub-Target Inflation In August
Officials from the Reserve Bank of India (RBI), led by Deputy Governor Michael D. Patra, issued a warning regarding potential risks from food price volatility despite two consecutive months of Consumer Price Index (CPI) inflation remaining below the central bank’s target as of August.
Key points from the RBI’s September Bulletin, in the article titled "State of the Economy":
- Food Inflation: Food inflation (year-on-year) rose slightly to 5.3% in August, up from 5.1% in July. This increase was largely due to a base effect (52 basis points) that outweighed negative momentum (30 basis points).
- Commodity Prices: In September, high-frequency data suggested a moderation in cereal prices, especially rice and most pulses (except gram). Among vegetables, potato and tomato prices dropped, while onion prices rose. Edible oil prices remained stable.
- Other Subgroups: Inflation increased in eggs, fruits, vegetables, and non-alcoholic beverages in August, while easing for cereals, meat, fish, pulses, and sugar. Deflation in edible oils lessened, and spice deflation deepened. Milk inflation remained at 3% for the third straight month.
- Fuel & Light: This category saw a deflation of 5.3% in August, driven mainly by a 24.6% year-on-year decline in LPG prices. Other fuel items recorded positive inflation.
- Overall Inflation: Headline inflation increased marginally to 3.7% in August (from 3.6% in July), due to an unfavorable base effect of 5 basis points, with the index unchanged from the prior month.
- Core Inflation: Excluding food and fuel, core inflation moderated to 3.3% in August, down from 3.4% in July. Categories such as transport, communication, education, and recreation saw increased inflation, while inflation in clothing, footwear, housing, and health remained stable.
- Regional Distribution: Rural inflation was higher at 4.2%, compared to 3.1% in urban areas. Most states recorded inflation rates below 6%.
Question: Which of the following can not be directly related to an increase in food price index?
- Change in monsoon
- Change in repo rate
- Change in energy costs
- Change in govt. regulations
PM Modi embarks on US visit for Quad Summit: Here's what he's doing in this 3-day trip
Prime Minister Narendra Modi embarked on a significant three-day visit to the United States starting September 21, 2024. The visit aims to strengthen diplomatic ties and includes several key engagements, including a meeting with US President Joe Biden.
Key Highlights:
- Quad Leaders' Summit:
- PM Modi is participating in the Fourth Quad Leaders' Summit hosted by President Biden in Wilmington, Delaware. The discussions will focus on peace and prosperity in the Indo-Pacific region, with key topics including health security, climate change, emerging technologies, maritime security, and counter-terrorism. A notable initiative, the Cancer Moonshot, will be launched, focusing on combating cancer in the Indo-Pacific region.
- Bilateral Meeting with President Biden:
- Modi and Biden will review and explore new avenues to deepen the India-US Comprehensive Global Strategic Partnership. Discussions are expected to cover key agreements, including the Indo-Pacific Economic Framework (IPEF) and a Memorandum of Understanding (MoU) related to drug regulations.
- Engagement with Indian Diaspora:
- PM Modi will address the Indian community in New York on September 22. He will also meet with US-based CEOs to foster collaborations in critical areas like artificial intelligence, quantum computing, semiconductors, and biotechnology.
- Summit of the Future at the UN General Assembly:
- On September 23, PM Modi will participate in the "Summit of the Future" at the UNGA in New York. He is expected to address global leaders on the theme "Multilateral Solutions for a Better Tomorrow."
Question: Which country is not part of Quad Summit?
- India
- Japan
- USA
- Mexico
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