RISING FOOD PRICES
RBI finally gets uppity, takes a hike
In a proactive move to tackle soaring inflation, the RBI has raised the interest rates by 25 basis points to 5.5%. Despite facing obstacles like fluctuating energy prices, India's economy is projected to show resilience. The central bank's strategy is now one of calibrated tightening, allowing adjustments based on fresh economic insights.
Pakistan's staple turns scarce: Peshawar pays Rs 3,300 for 20kg flour as subsidised supply dries up
Flour prices in Peshawar have sharply increased, leading to significant rises in roti prices as well. Bakers have reportedly raised the price of a 50-gram roti by 50%, exacerbating public anger. The government claims to be supplying subsidized flour, yet it remains scarce in the open market. Authorities are monitoring dealers amidst accusations of an artificial shortage in the region.
A new rate game begins. What’s inside the RBI’s new playbook?
RBI rate hike in October monetary policy marks a sharp shift to calibrated tightening, raising the repo rate to 5.5%. RBI Governor Sanjay Malhotra is prioritising inflation risks as crude oil, food prices and inflation expectations rise. Strong FY27 GDP growth at 7.1%, rapid credit growth and tighter liquidity give RBI room to act before supply shocks spread across markets.
PepsiCo's fizz fades as GLP-1 drugs and activist investor Elliott's targets test its snack business
PepsiCo faces challenges in achieving its growth and margin targets due to rising competition and increased input costs. The company has seen a decline in its North American business, impacting sales volumes and market share. Healthier product offerings have been introduced in response to market changes and consumer preferences. Analysts predict modest revenue growth but express concerns about long-term recovery.
Canadians are paying more for their daily protein shake as whey prices soar amid trade war with US, but is there any relief in sight?
In Canada, the surge in whey protein prices can be attributed to a spike in global demand alongside decreasing availability. The situation is worsened by import tariffs from the U.S. that challenge consumers and businesses alike to adapt. A growing number of individuals are turning to whole foods or plant-based alternatives, prompting manufacturers to revise their pricing tactics. Analysts predict that elevated prices will persist over time.
RBI may hike interest rate further in December policy: Experts
The Reserve Bank of India has shifted its policy stance to calibrated tightening amid rising inflation concerns. A rate hike of up to 50 basis points is anticipated in December, increasing the current benchmark rate. Various economists emphasize the likelihood of cumulative rate increases over the next months. Rising commodity prices and global market volatility are influencing these monetary policy decisions.
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Could a global food crisis take a big bite out of your plate? What the warnings mean for Americans
International leaders are warning of a possible global food crisis. Could American households feel the impact at the grocery store? May, 2026 JP Morgan report quotes, 'Fertilizer shortages can hurt harvests because the timing is unforgiving. A brewing El Niño could layer on additional seasonal climate and weather stress, shifting rainfall and temperature patterns, and bringing weather extremes.'
RBI Repo Rate 2026: Malhotra & Co hike repo rate by 25 bps to 5.50% for first time in nearly 4 years as inflation pressures build
Repo Rate Hike: The RBI raised the repo rate by 25 basis points to 5.50%, its first hike in nearly four years, as rising oil prices, a weak monsoon and a weaker rupee threaten to push inflation higher. The move was widely expected by economists.
RBI MPC Key Takeaways 2026: Repo rate hiked to 5.50%, FY27 GDP growth forecast raised to 7.1%
RBI Monetary Policy 2026 Takeaways: The Reserve Bank of India raised the repo rate by 25 basis points to 5.50%, the first increase since February 2023. The GDP growth forecast for FY27 was raised from 6.7% to 7.1%, highlighting resilient economic activity. Meanwhile, CPI inflation projection was revised up to 5.2% due to rising food and fuel prices. The Monetary Policy Committee shifted its stance to calibrated tightening, emphasizing inflation containment.
RBI Inflation FY2026-27: Malhotra & Co raises inflation forecast to 5.2% for FY27
RBI Inflation 2026-27 Forecast: The Reserve Bank of India has updated its inflation forecast for FY27 to 5.2% from 5.0% previously. This revision comes as retail inflation exceeds the RBI's target for three consecutive months. The rise in crude oil prices and food costs is a significant contributing factor. Additionally, a weaker rupee adds to imported commodity expenses and inflationary pressures. El Niño is also expected to impact food supply, further influencing inflation.
RBI hikes rate, but analysts see shift to ‘calibrated tightening’ as bigger takeaway. How can this impact markets?
RBI’s 25-bps repo rate hike to 5.50% was largely expected, but its shift to ‘calibrated tightening’ surprised markets and signals that near-term rate cuts are unlikely. Analysts expect selective pressure on rate-sensitive sectors, while banks with stronger balance sheets may remain relatively better placed amid rising inflation and crude prices.
PepsiCo, Monster, Reliance Consumer Product win reprieve on 'energy drink' label ban in India
The regulator in June ordered makers of high-caffeine beverages sold as "energy drinks" to stop using the description, rejecting the industry's efforts to stall the move in a market expected to be worth $1.6 billion by 2028.
RBI MPC Meeting at a Glance: Your one step guide for all decisions
RBI Monetary Policy Meeting Highlights: The Monetary Policy Committee has raised the policy repo rate by 25 basis points to 5.50%. RBI Governor Sanjay Malhotra indicated that inflation pressures are increasing and rate cuts are not expected soon. The Indian economy continues to show resilience, with GDP growth projected at 7.1% for the year. Inflation is forecasted at 5.2%, with core inflation expected to be around 4.4%.
Pulses prices surge: Will cheaper imports bring relief to consumers? Stakeholders divided
India currently imposes a 10% import duty on red lentils and chickpeas, while yellow peas attract a 30% duty.
Last line of defence! How 7 Nifty stocks survived the market’s two-month bloodbath
In an unprecedented downturn, the Nifty has faced its longest losing streak in 25 years, sliding for over eight weeks as foreign investors withdrew significant funds from Indian equities. Despite this market decline in September, seven stocks, led by Kotak Mahindra Bank and Dr Reddy's Laboratories, demonstrated resilience. Particularly, Kotak Mahindra Bank's performance is linked to robust analyst endorsements and optimism surrounding the banking sector's recovery.
Diwali gifting gets pricier as pistachio, almond rates surge on US-Iran war, higher freight and weak rupee
Prices for nuts and dry fruits have increased significantly this festive season due to supply issues. Sourcing challenges from key suppliers like Iran and Afghanistan have caused price surges. Additionally, rising freight costs and a weaker rupee have further impacted import charges for these products. Festive demand is expected to maintain upward pressure on prices in the coming weeks.
Double trouble at the dinner table: When will food prices normalise for Indians?
India’s food inflation: Food prices are rising unevenly, impacting household budgets, while inflation is projected to persist in upcoming months. Economists expect food inflation to reach up to 7% in the near future due to various factors. Weather risks, particularly from El Niño, could significantly affect crop yields and consequently food prices. Additionally, global events in West Asia contribute to higher energy and logistic costs.
Global Market | High energy costs threaten eurozone inflation outlook: ECB's Nagel
Eurozone inflation stands at 3.8%, with Bundesbank President Joachim Nagel warning of upside risks from energy, food and refining costs. However, wage and price-setting remain contained, while long-term inflation expectations stay aligned with the ECB’s 2% target. Markets increasingly expect further ECB rate hikes, though Nagel urged flexibility.
RBI policy confronts a world with long tails
The RBI is likely to begin raising rates in October, with another hike possible in Q4 2026, as inflation risks broaden. Higher oil prices, weather shocks, weaker currency and geopolitical risks are fuelling imported pressures.
Industry body urges cooking oil firms to pass on import duty cut to consumers as festive season nears
Indian Vegetable Oil Producers’ Association calls on companies to reduce retail prices following recent government duty cuts. The duty reductions aim to provide consumers relief during the approaching festive season when demand rises. Companies are expected to submit their retail pricing weekly to ensure transparency in the market. Global price volatility has affected domestic edible oil prices, contributing to inflation pressures on consumers.
Charting the global economy: US employment growth moderates
The labor market in the US revealed sluggish growth in September, with only 29,000 jobs added, alongside a significant deceleration in wage increases. In Europe, inflation hit a three-year peak, triggering conversations around possible interest rate hikes. In contrast, China reported the weakest growth in industrial profits since November, hindered by rising expenses.
Pakistan's inflation remains in double digits as fuel, power costs bite
Pakistan's inflation eased to 10.3 per cent in September 2026, down from 11.1 per cent in August, but remained above the government's projections as rising electricity and fuel costs continued to offset the relief from lower food inflation. The figures released by the Pakistan Bureau of Statistics showed that consumer prices rose 1.3 per cent month-on-month in September.
Fuel subsidies may top $1 trillion: UN
The UNDP analysis - which looked at data from the World Bank, the International Monetary Fund and the International Energy Agency - found the number of countries deploying different relief measures nearly doubled between April and September as the war's impact continued.
Developing countries hit by overlapping crises, UNDP chief warns
Rising energy costs and El Nino conditions are challenging developing countries facing financial distress. Governments are struggling to manage high fuel prices and increasing debt levels. Recent UNDP surveys indicate that the crisis is affecting approximately 100 countries and worsening food insecurity. Many nations anticipate that conditions will deteriorate, prioritizing economic health. There is an urgent need for global discussions to address these mounting challenges.
UK 30-year gilt yields top 6% for the first time since 1998
British 30-year government bond yields have surged to their highest level since early 1998. This surge follows a significant increase in U.S. Treasury yields despite steadied oil prices. Short-dated gilt yields also rose sharply, reflecting concerns about the UK's fiscal vulnerabilities. Investors anticipate possible interest rate hikes by the Central Bank in November or December. The financial market is reacting to ongoing economic pressures like rising food and energy prices.
New data points to a sharper divide in consumption trends in rural, urban India
Indian households in urban areas are showing a decline in quarterly expenditure while rural spending is increasing. A study indicates urban households’ spending decreased by 4% year-on-year, contrasting with rural households’ 15% growth. Increasing costs are making consumers prioritize essential spending over discretionary purchases, and household perceptions of financial stability have worsened.
India steps up palm oil buying as tax cut spurs restocking
India is increasing its palm oil imports after reducing import duties, prompting refiners to restock. More than 200,000 tons of crude palm oil have been bought recently as inventories run low. The government cut taxes on edible oil imports, adding urgency to the purchases. This buying activity is crucial ahead of the Diwali festival and the wedding season.
India factory activity rebounds sharply in September as demand revives, PMI hits 7-month high
India's manufacturing sector rebounded in September after a three-month slowdown, driven by strong demand for various products. The HSBC India Manufacturing Purchasing Managers' Index rose to 55.1, indicating notable growth in factory activity. New orders increased significantly, with manufacturers reporting higher export demand from multiple international clients. Employment in the sector also expanded, recovering from a previous decline in August.
RBI’s wait and watch phase is over as inflation demands a rate hike
RBI has maintained its policy rate at 5.25% but is facing significant inflation pressures. Retail inflation has risen above the target of 4%, indicating the need for action. Food and fuel inflation are increasing, contributing to overall economic effects. Additionally, external factors, including global interest rates, add to the urgency for a rate hike. Thus, effective monetary policy adjustments are crucial in the current economic context.
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