Tag: inflation

Wine, spirits importers urge states for inflation-linked pricing policy as margins shrink

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Premium spirits and wine importers’ body ISWAI has urged state governments to implement an inflation-based pricing model, highlighting that industry margins have shrunk due to a rise in raw material costs. As the cost of raw materials used to produce alcohol has gone up substantially and theP of liquor has not been revised in recent years, very little is left for the trade and manufacturers while state governments are taking away as high as 60-80% of the share, according to International Spirits & Wines Association of India (ISWAI) CEO Nita Kapoor.

ISWAI is also pressing for rationalisation of excise duty imposed by some state governments, as they try to maximise the revenue collections, and said it will not help in growing volumes. “The industry and manufacturers are now facing a lot of pressure. It’s like their back against the wall because if in theP, states share is roughly about 60 to 80%, then what is being left on the trail and the sub-manufacturer is to share 20%. The gross margins are diminishing,” Kapoor told PTI.

The liquor industry is the largest income source for state governments after state taxes on petrol and diesel. The state governments are not increasing theP due to the fear of volume loss after a price increase. “The states are saying that if we maximise our collections and do not want the volumes to drop, we will hold theP. So when they would hold theP, how will I give the sub-manufacturers a price increase,” she said.

According to the association, prices of raw materials such as ENA (extra neutral alcohol) have gone up by 53% between 2018 and 2024. Similarly, prices of other materials such as glass, labels and paper packaging have gone up by 79%, 29% and 31% respectively. “The inflation is going up y-o-y. If the manufacturers do not get the price increase, if the manufacturers do not ask if the industry does not have an inflation-based pricing model, where will this industry go,” said Kapoor adding “Let us not kill the golden goose..”

ISWAI is asking for an inflation-based pricing model which is transparent, and based on data that the industry can submit. “The industry has reached the bottom of the margins. you can not kill it. It contributes 2% of the GDP. So you (state governments) need to balance ambitions,” she added.

Over the growth of the alchobev segment, Kapoor said it is witnessing a faster pace of premium products, which is above ₹900 to ₹1,000 for a bottle of 750 ml, where ISWAI members lead with domestic brands and finished products (imported/bottled at origin). Besides, low-value liquor is also selling well.

“As per my estimates by the end of the year, the industry will grow roughly about 2 to 3%… The growth will be primarily polarising- ₹900 and above and the other will be cheap liquor, which will be roughly about ₹500 or ₹600 and below,” she said adding “so we are going to see a polarized growth, a trend that started after COVID and is just picking up.”

“This industry is expected to touch about $63 billion in the next 3 to 4 years. Currently, it is somewhere between $53 billion and $55 billion. So it is going to be a pretty good growth from a value perspective,” Kapoor added. When asked about the competition faced by global brands from Indian manufacturers, which are launching their single malts, she said “the more the merrier” as the segment is very minuscule.

“If I was to include all the brands all imported brands including bottled in India, you need many more brands to come in to be able to grow the top end… There is room for everybody. I would welcome as many domestic brands being developed. Our members are also doing,” she said. ISWAI members include Bacardi, Beam Suntory, Brown Forman, Campari Group, Diageo-United Spirits, Mot Hennessy, Pernod Ricard, and William Grant & Sons, which are global leaders in the spirits and wine industries.

Several ISWAI members such as Diageo India, Pernod Ricard etc have also launched Indian single malts. “It’s good for consumers and industry… It is also good for the government’s exchequer as the taxes on premium products are far higher. So if that grows, the states will be able to have a different strategy for revenue collections,” she said.

Over the ongoing negotiations with India and the UK over the signing of a Free Trade Agreement (FTA), Kapoor said, the industry has given its representation and it is now between the two governments to decide.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

European Central Bank keeps interest rate unchanged at 4.5%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The European Central Bank left interest rates unchanged for a fourth meeting as a softer outlook for inflation and economic growth fed expectations for cuts to begin in June.

The deposit rate was kept at a record 4% — as all economists surveyed by Bloomberg predicted. The Governing Council reiterated that maintaining this level of borrowing costs for “sufficiently long” will make a “substantial contribution” to returning consumer-price growth to the 2% goal.

#NewsFlash | European Central Bank (#ECB) keeps interest rate unchanged at 4.5% pic.twitter.com/USRVNNIKCG

— CNBC-TV18 (@CNBCTV18Live) March 7, 2024

“The Governing Council will continue to follow a data-dependent approach to determining the appropriate level and duration of restriction,” the ECB said Thursday in a statement. “Although most measures of underlying inflation have eased further, domestic price pressures remain high, in part owing to strong growth in wages.”

The euro slipped after the decision, trading down 0.2% at $1.0874. Traders added to bets on monetary easing, seeing 98 basis points of rate reductions in 2024 compared with about 93 basis points previously.

The ECB, like the Federal Reserve and the Bank of England, is contemplating when to sound the all-clear on inflation and begin undoing the unprecedented monetary tightening deployed to subdue it. While price growth in the 20-nation euro zone is nearing the target, policymakers there are wary of cutting too soon and want assurance that wage increases are under control.

Their latest quarterly outlook puts inflation at 2.3% this year — down from 2.7% in December — and revises the 2025 forecast down to 2%. The economy, meanwhile, is seen expanding by 0.6% in 2024 versus 0.8% previously.

President Christine Lagarde will hold a news conference at 2:45 p.m. in Frankfurt, though several officials had to participate in this week’s meeting remotely as strikes in Germany scuppered their travel plans.

Investors will look to Lagarde for signals on whether expectations for a first rate cut in June remain valid. She may also be quizzed about a festering spat with ECB staff over freedom of debate and climate policy.

June is certainly the timeline around which the majority of officials had been converging — even if some would like swifter action as the continent’s economy struggles to exit more than a year of stagnation.

For that reason, many politicians also crave looser financial conditions. “A cut in rates could help boost growth, which is low across Europe,” Italian Finance Minister Giancarlo Giorgetti said last week. “I think I’m not the only one who shares this view.”

While policymakers are more confident that inflation is receding sustainably, most deem it too soon to declare victory and want to see more data backing the retreat before giving the green light for monetary loosening.

February inflation, at 2.6%, came in a touch stronger than expected — supporting those who don’t want to rush into lowering rates. A Nowcast compiled by Bloomberg Economics, however, shows March inflation at 2% — suggesting the ECB is closer to its target than it may think.

Whatever the reality, most policymakers are keen to examine the drip feed of wage data due over the coming months before acting. They even include doves like Greece’s Yannis Stournaras, who said recently that the ECB “won’t have enough information” to decide on cuts before June.

In the US, the Fed “does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%,” Chair Jerome Powell said Wednesday.

The Bank for International Settlements is similarly circumspect, warning this week that the current dominance of services in overall price growth may lead to more stubborn inflation and demand tighter policy.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Turkey’s inflation accelerates closer to 70% with rates at peak

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Turkey’s annual inflation swung to a 15-month high, an acceleration closely watched by a central bank that’s still on alert after ending interest-rate hikes.

Stoked in part by this year’s sharp increase in the minimum wage, price growth in February quickened for a fourth straight month to 67.1% from 64.9% in January. The median forecast in a Bloomberg poll of economists was 66%.

Monthly inflation — a gauge that’s been under particular scrutiny by the central bank — eased back to 4.5% from 6.7% in January, though it remains well above its level in the fourth quarter.

“We are far away from price stability, but that’s our goal” Turkey’s Treasury and Finance Minister Mehmet Simsek said in a TV interview with Bloomberg HT before the data release.

The figures were the final reading before local elections later in March, a ballot in which President Recep Tayyip Erdogan’s ruling party will try to win back opposition-held cities such as Istanbul and Ankara. Looser fiscal policy ahead of the vote has emerged as an obstacle to efforts by the central bank to contain inflation.

Newly installed Governor Fatih Karahan, who took over after a surprise leadership change in early February, has called the minimum wage increase the biggest risk to Turkey’s inflation outlook.

Policymakers expect annual inflation to peak above 70% in May but left rates unchanged last month, after delivering a cumulative 3,650 basis points of tightening in eight steps. For the first time, the central bank mentioned in February that it deems real lira appreciation a key element of disinflation.

The minutes of the last policy meeting also singled out the “strong increase in unprocessed food prices” as a major driver of price growth.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Gold hovers near one-month peak on slowing US inflation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gold prices hovered near a month high on Friday after data suggested easing US price pressures, reassuring investors vouching for a June interest rate cut by the Federal Reserve.

Spot gold edged 0.1% higher to $2,044.60 per ounce, as of 0808 GMT, after hitting $2050.59 on Thursday – its highest level since February 2.

Bullion was headed for a second consecutive weekly gain.

US gold futures were flat at $2,053.00.

”Markets were relieved that there were no nasty surprises in the personal consumption expenditures (PCE) report. Gold traders rejoiced the fact that core-PCE slowed annually,” City Index senior analyst Matt Simpson said.

Data showed on Thursday PCE inflation in January rose 2.4%, the smallest annual increase since February 2021, after a 2.6% advance in December.

Receding inflationary pressures have helped the Fed to set the table for rate cuts likely later this year. Lower rates boost the appeal of non-yielding bullion.

Money market pricing shows traders are pricing in three quarter-point US rate cuts for 2024.

Investors will watch out for remarks from at least six more Fed officials due later on Friday.

The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust’s holdings fell 3.3% in February and 6.4% so far this year.

”Whilst negative ETF flows are capping gold prices, China’s central bank is a key reason that gold prices remain supported, as they were the second highest purchaser of gold reserves in the fourth quarter,” Simpson said.

Spot platinum fell 0.2% to $871.06 per ounce, and palladium dropped 0.3% to $939.12. Both posted a second monthly decline, with palladium touching more than five-year lows of $849.13.

Platinum group metals producer Impala Platinum said it could shut some of its loss-making South African mining operations if metal prices deteriorate further and restructuring efforts fail to improve margins.

Spot silver fell 0.4% to $22.59 per ounce.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Food prices expected to come down soon, says Finance Ministry

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Union Finance Ministry on Tuesday (February 20) expressed optimism regarding India’s inflation outlook in its monthly economic report, forecasting a further moderation in food inflation in the coming months. It also highlighted a positive outlook for headline inflation rates, stating that prospects for the Indian economy appear bright overall.

The RBI has revised the inflation projection for Q4 of FY24 downward to 5% in the Monetary Policy Statement of February 2024, from 5.2% in the previous MPC meeting.

However, the Finance Ministry cautioned against downside risks to trade, which include a potential spike in new commodity prices from geopolitical shocks, continued attacks in the Red Sea, and supply disruptions, all of which could extend tight monetary conditions and negatively affect global demand recovery.

The ministry pointed out that the average crude oil FoB (free on board) price for the Indian basket during FY24 was $82.2/bbl, lower than the average of $93.2/bbl in FY23.

Moreover, core inflation for FY24 (up to January 2024) was reported as the lowest since FY21 (Ministry of Statistics and Programme Implementation), indicating a favourable environment for output growth and overall inflation.

However, given the persisting uncertainties in global output and trade growth, the MoF underscored the urgent need for India to enhance its export competitiveness and attractiveness.

It emphasised that while lower input prices and overall inflation can have a positive influence on output growth, it is crucial to address existing challenges and find ways to boost exports to capitalise on the promising prospects for the Indian economy.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Inflation has impacted entry segment: Shailesh Chandra, Tata Motors

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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…but other counterbalancing factors have been the strong GDP growth. More and more people getting uplifted economically to have discretionary income to buy cars. In a special chat with CNBC TV18, Shailesh Chandra, Managing Director of Tata Motors, Passenger Vehicles and Electric Vehicle Mobility is speaking about expectations from 2024, what challenges lie ahead, bifurcating the ICE and EV business and being the largest electric passenger vehicle manufacturer in the country what are their plans with the EV business. (Edited excerpts)

What are your expectations from 2024 and key focus areas for Tata Motors for this year?

Chandra: There are have been two very strong years 2021-2022 for the auto industry. And the growth rates were upwards of 20%. And then this was moderated in 2023 to about 8 percent. It was quite obvious because generally, that’s the secular growth rate of Indian (Passenger Vehicle) PV industry, which is about 7 to 8%. And it had to moderate because those two years (2021-22) were because of a high pent up demand and disruptions on the supply side because of semiconductor crisis, etc.

2023 also started with a certain level of pent up demand and also very low channel inventory and it was able to grow at 8%. The good thing is that, three years back the market was 2.7 million, and it grew to 4.1 million. And it has been able to sustain at that level. And I believe that this is the level at which it can easily sustain and also grow by another 5% or so. But yes, we are not going to see growth rates of 20-25% that we had seen earlier. That’s what the expectation is in 2024. What I see for all the auto manufacturers is that launch activities in the past have really helped us. I see SUV segment, there were multiple launches in 2023. But, what really drove 2023 was the new powertrains which was CNG and Electric. 25% growth came from CNG and nearly 95% growth came from electric, I think this is one trend that is going to stay in 2024 also going forward.

So, from Tata Motors perspective, I would say that we are in the sweet spot. Because if CNG and EVs are going to grow I think our portfolio has grown very strong and we intend to bring more models this year. Also, SUVs are growing specially the midsize SUV which is the 4.3 meter category and there are products that we are going to launch this year, which is starting with Curve and next calendar year, we are also going to come with Sierra. So, these are in the 4.3 meter segments. So, I think hopefully, therefore, we should be going for an industry beating growth.

Increased input costs, rising commodity prices, and inflation are the issues troubling most of the auto makers, tell us how is it impacting your overall strategy going into the year?

Chandra: Other counterbalancing factors have been the strong GDP growth. More and more people getting uplifted economically to have discretionary income to buy cars that is one big mitigating factor that is playing out. Post COVID the behaviour has changed in favour of cars. I must say people possibly rather than buying a house they are buying, they are buying the cars. Also, because most of the car buyers are less than 35 years age. So they prefer to buy cars they are wanting to go out with their families and friends. So, the trend is very positive for cars, inflation and interest rate has really impacted the entry segment. But it has been counterbalanced, I would say by very moderate price increases taken by the OEMs in this segment, but also you would have seen in 2023 it was also a lot of discounting which happened in the segment to support that segment.

So do we expect a price rise going forward?

Chandra: Price hike will now completely be dependent now on the commodity inflation. The last two quarters we have been seeing that commodity prices have been stable. But you do get hints of increases in certain areas as in when it happens, there will be two pronged strategy one that we go for cost reduction, which is a continuous process within the company through Value Engineering, commercial production, etc. But whatever we are not able to offset will have to pass it on to the customer.

From Tata Motors we see a clear push towards the EV business. But this also puts you in a strange position because you still have to sell your ICE offerings. So how do you strike that balance?

Chandra: We are not compromising anywhere. Frankly, the statistics would also speak a lot about that. We started our journey in 2018. Even if you compare with 2020, our EV business has grown from nothing to not touching 75,000 this year, and hopefully we should be above one lakh next year. On the other hand, the ICE business has grown from about 130,000- 135,000 a year to more than 500,000. So which means that bringing focus by separating the teams and businesses really helps not only from a resource focus, but also it gives clarity to both the businesses because both businesses are going to co-exist for long.

And therefore, we have to thrive on ICE also even more as compared to EVs because this will be still the sizable part of the industry. So, it is now very clear in terms of resource, passenger vehicle business need not subsidise EV business, they have to earn themselves and invest aggressively for their growth. Whereas, for EV business, it needs a period of cash burn because there is an investment which will be done ahead of the revenue realization. So that phase will be taken care of with the external investment that we have got, which is through TPG. So there’s absolute clarity in terms of the two businesses how they will be funded, and what will be the sustainable way of winning in passenger vehicle business and proactively winning in EV business.

What matters most to consumer today, is it design, is it tech?

Chandra: I think first they need the comfort of the brand. And when I say comfort of the brand, it means that the brand is stable. It’s going to stay. A brand that they trust. For example, I would say that Tata has products that are synonymous with safety. The safest cars are associated with Tata. I think that is one space you have to occupy there has to be one very strong differentiation that your brand needs to have. They also look for the network presence across the country, how will be the after sales support beyond these are the factors which you know, play behind the brand creation. I think brand therefore, definitely as is at the top, unlike, you know earlier where cars were only seen as moving from point A to point B. Then it was more around whether this is cheap or not.

‘Sasta Hain ke nahi’ or ‘Kitna Deti Hain’. So, those things have changed, brand becomes important. And also remember that a lot of buyers are young, less than 35 years, majority is less than 35 years. For them, everything that they use is a part of their expression of personality. And therefore, car is also. How they live in home and how they live in a car is now a part of that.

So cars have to be stylish, it should be expressing their personality, they don’t want to be seen in a car, which is not expressing their personality from a styling perspective. So design also is becoming important. Price is becoming less important, I might be giving a very contrarian view here. But the facts show that if you really see 60% of my Nexon buyers, which is a ₹10-11 lakh buyers are first time buyers. But there are cars which are much cheaper than that why a first time buyer is choosing to buy a ₹10 lakh car because they want a car to be an object of experience with their families’ friends. So if they buy a car, they don’t want an experience with their families and friends in a cramped car. They want to have a slightly bigger car, spacious car. They are also going for feature rich cars.

So you are clearly seeing that price is becoming less important because it’s okay to give that extra 1000 rupees or 2000 rupees, EMI, but they would go for a better car which fully expresses their personality brand that they trust in, and which has lots of new tech features.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Inter-bank call rate declines below repo rate, sparks speculation on monetary policy shift

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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On Monday, India witnessed its inter-bank call rate—the rate at which banks borrow from each other for one day—dipping below the long-standing repo rate of 6.5%. The development marks a departure from the trend observed over the past four to five months, where the call rate had been oscillating between 6.75% and 6.8%.

The Reserve Bank of India (RBI) had maintained a policy of tight inter-bank call rate in recent months, a strategy influenced by the government’s cautious spending approach as well as the spike in inflation, which reached 7.8% in July and August, primarily driven by the surge in tomato prices.

However, the economic landscape started shifting in November and December, when inflation fell below the RBI’s forecast. This, coupled with increased government spending on activities such as month-end salary payments, contributed to a noticeable drop in the inter-bank call rate, culminating in the breach of the 6.5% threshold on Monday.

The decline in the inter-bank call rate serves as an indicator that the RBI is now more comfortable with the prevailing economic conditions and that inflation is no longer perceived as a severe concern by the RBI.

Market observers are now speculating that this decline in the call rate could pave the way for a shift in the RBI’s monetary policy stance. There is growing anticipation that the central bank might consider adopting a more dovish approach in the upcoming monetary policy decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Onions bring tears to farmers as export ban leads to financial losses

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The conclusion of 2023 brought distress for onion farmers, and the onset of 2024 hasn’t brought any relief. The government’s measures have thwarted the farmers’ aspirations to fetch better prices for their crops, already scarce due to widespread damage.

In August 2023, a 40% export duty on onions was imposed, followed by a complete ban on onion exports from December 2023 to the end of March 2024. Farmers assert that these actions have inflicted severe financial strain on their already meager resources.

While the government contends that its interventions were motivated by the greater good of maintaining retail prices, farmers argue that political considerations drove the decisions.

According to government data, onion exports from India were valued at $378 million in 2020-2021, $460 million in 2021-2022, and $561 million in 2022-2023. However, the eight-month export restrictions in 2023-2024 are expected to significantly reduce this year’s figure.

The repercussions extend beyond the farmers to traders, who are particularly impacted by the timing of the export ban.

Vikas Singh, an onion exporter, lamented the inability to enter new export contracts due to the ban coinciding with the January renewal period for international contracts.

Furthermore, the export restrictions have led to a surge in onion prices in neighbouring countries such as Nepal, Bangladesh, Sri Lanka, Bhutan, and Malaysia, reliant on India for their onion supply. Traders fear long-term financial and livelihood consequences.

The ban also translates into a loss of market share for Indian exporters as other countries like China and Pakistan gain an advantage in supplying onions to nations that were previously dependent on India.

While experts acknowledge the challenging times for onion farmers and traders, they anticipate the impact to be temporary.

Pushan Sharma, Director of Research at Crisil Market Intelligence & Analytics, believes that, given India’s significant onion production, normalcy next year could see these countries returning to import from India. However, this year they are compelled to seek alternative sources for their onion requirements.

Official quantification of losses is pending, and farmers await the promised compensations scheduled for March, August, and December. In the meantime, experts estimate that the export ban alone could result in revenue losses exceeding ₹10,000 crore for farmers and traders.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

In inflation-hit Pakistan, egg prices soar to PKR 400 per dozen, chicken at PKR 615 per kg

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In inflation-hit Pakistan, the prices of several food items have skyrocketed in the past few days, with eggs being sold for 400 Pakistani Rupees (PKR) per dozen in the country’s provincial capital of Lahore.

The hike in prices comes as the local administration failed to enforce the rate list issued by the Pakistani government, leading to soaring prices for various commodities, ARY News reported.

For instance, onions are being sold between PKR 230-250 per kg, even when the government has fixed the rate at PKR 175 per kg.

Meanwhile, chicken is being sold at PKR 615 per kg.

In December last year, the Economic Coordination Committee (ECC) asked the National Price Monitoring Committee (NPMC) to continue regularly coordinating with the provincial governments for measures to ensure price stability and to check hoarding and profiteering, the report said.

Meanwhile, Pakistan’s total debt burden increased to a whopping PKR 63.39 trillion at the end of November in FY 2023-24, reports said.

Amid the political crisis, the country’s total debt saw an increase of over PKR 12.430 trillion during the tenure of the PDM and the caretaker government.

A World Bank report recently stated that the country’s economic development is limited to the elite, which resulted in Pakistan lagging behind its fellow countries in the wake of the economic crisis.

In the wake of the economic crisis, Najy Benhassine, the World Bank Country Director for Pakistan, noted that the nation’s economic model has become ineffective and that poverty reduction is starting to increase again.

In 2023, the inflation rate skyrocketed to almost 30% in the country, while the real GDP growth rate was -0.5%, according to the International Monetary Fund’s World Economic Outlook Database.

As per the data released by the State Bank of Pakistan, the foreign exchange reserves held by it had declined to $7 billion at the end of November 2023. In July 2023, it was $8.1 billion — the highest.

Besides this, the election commission of Pakistan on Monday rejected a resolution passed by the Senate earlier this month seeking a delay in the general election, slated for February 8.

The election commission stated that all arrangements have been completed and it won’t be ‘advisable’ to put off the planned elections.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Carrefour halts PepsiCo sales in France, citing ‘unacceptable’ price hikes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Carrefour is telling customers it will no longer sell PepsiCo products like Pepsi, Lay’s crisps and 7up because they had become too costly, in the latest tug-of-war over prices between retailers and global food giants.

From Thursday, shelves with PepsiCo products at Carrefour stores in France will be accompanied by a note saying “We are no longer selling this brand due to unacceptable price increases,” a spokesperson for the French retailer said.

PepsiCo did not respond to a request for comment.

The US company said in October it planned “modest” price hikes this year as demand held up despite rises, leading it to hike its 2023 profit forecast for a third straight time.

Also Read: China services sector expands in December, private survey shows

Over the past year, grocery retailers in several countries including Germany and Belgium have announced they stopped orders from consumer goods firms due to price rises, a tactic in price negotiations that have become more fraught due to inflation.

It is unclear whether PepsiCo products already on Carrefour shelves will be withdrawn, the spokesperson said, adding it cannot stop shoppers from buying those on display.

The signs would only be put up in Carrefour’s stores in France, the spokesperson said, confirming local media reports.

Carrefour has been one of the most active retailers to challenge big consumer products and food companies over prices.

Last year, it started a “shrinkflation” campaign of sticking warnings on products that have shrunk in size but cost more. The spokesperson could not immediately confirm on Thursday if this was still the case.

In its efforts to bring down inflation, the French government has asked retailers and suppliers to wrap up annual price negotiations in January, two months sooner than usual.

A preliminary reading from the INSEE statistics office on Thursday showed consumer prices in France rose 4.1% year-on-year in December, with yearly food inflation slowing down to 7.1% from 7.7% the month earlier.

France’s finance minister has previously threatened to claw back what he described as “undue” profits from food companies with special taxes if they did not pass on their own lower costs to consumers already struggling with high energy bills.

Also Read: US, other countries warn Houthis against further attacks in Red Sea

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow