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Title: EU-Harmonized French Inflation Slows to 6.2% in September - Insee

September 30, 2022 02:59 AM ET

By: AnalysisWatch

French inflation rose at its slowest pace in four months in September as prices for energy and services eased, according to new data from the French Institute for Statistics and Economic Studies.

The preliminary reading of annualized EU-harmonized consumer price inflation in France was 6.2%, down from 6.6% in August. Economists had expected 6.7%.

This is the lowest growth rate since May, when prices rose 5.8%.

Month-on-month, prices fell 0.5%, the first such decline since September 2021.

Title: India’s RBI Hikes Rates by 50 Bps, Trims GDP Forecast

Sep 30, 2022 01:03AM ET

By: AnalysisWatch

 

The Reserve Bank of India raised interest rates as expected on Friday and signaled the need for more policy tightening, but cut its annual GDP forecast, citing increased inflationary pressures and headwinds from global economic weakness.

The bank raised interest rates by 50 basis points (bps) to 5.90%, the highest level since April 2019, with five of the six members of the Monetary Policy Committee agreeing to the hike. The hike comes amid growing weakness in the rupee, which sank to a record low in September amid increasing pressure from rising interest rates in the US.

India's consumer inflation has been stiffer than expected this year due to high fuel prices and a scattered monsoon that has pushed up food prices. Inflation remains at a two-year high of 7%, exceeding the central bank's target range of 2% to 6%.

However, RBI Governor Shaktikanta Das said in a live broadcast that the bank now expects real gross domestic product to grow by 7% in fiscal year 2022–2023, down from the bank's previous forecast of 7.2%.

India's economy grew by 13.5% in the three months through June. However, the figure was below market expectations for 15.2% growth.

Das said that while India's economy remains resilient, it faces greater challenges from geopolitical tensions and tightening monetary conditions around the world.

Das also reiterated the country's retail inflation forecast of 6.7% for the current fiscal year. He said the bank will continue to focus on withdrawing accommodative monetary policy to counter inflation, which tends to be at "alarmingly high levels."

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