Retail Inflation Trends in Key Economies

Retail inflation fell to 5-year low of 3.54% in July, aided by favorable base effect and moderation in food prices. Food inflation slowed to 5.42%, with vegetable prices at 6.83%. Cereal prices rose 8.14% and pulses 14.77%. Clothing, housing inflation also increased. RBI cited food-price inflation as continuing risk and said policy will remain actively disinflationary. Government collects retail-price data from 1,114 urban markets and 1,181 villages across India. RBI expects further relief in..

[Reuters] - According to the consumer survey released by the Federal Reserve Bank of New York on the 12th, inflation expectations for three years ahead have decreased from 2.9% in June to 2.3% in July, reaching the lowest level since the survey began in 2013. Inflation expectations for one year ahead and five years ahead remained unchanged at 3.0% and 2.8% respectively, from June. It was also revealed that consumers, especially low-income households, anticipate a higher likelihood of falling b..

Grocery price inflation in Great Britain rose to 1.8%, up from 1.6% in July, as prices increased across 182 product categories but dropped for 89 others. Sales of ice-cream, burgers, chilled prepared salad, wine, nuts, crisps, and beer increased compared to last year. Sainsbury's was the fastest-growing traditional supermarket, Ocado continued its six-month run as the fastest-growing grocer overall, and Tesco maintained its streak of winning market share every month since August last year.

Food inflation dropped to 3.1% in July, driven by the decrease in the prices of fruit and olive oil, which now have a 0% VAT. Electricity also became cheaper by 6% in the summer, although wholesale prices remain high.