Consumers Are Feeling Unfulfilled
Puffed up packaging is prompting a spate of class-action lawsuits from consumers questioning why there is empty space where their food or beverages should be. Here are seven products that have faced challenges from consumers who allege that there should not be less to eat or drink than meets the eye.
What does this all boil down too? Size matters.


India: WPI exits deflation

India's wholesale price index (WPI)-based inflation rose 0.3% in April from 0.9% a month ago, returning to a positive territory after remaining in deflation for 17 months. However, Nomura feels that owing to rising costs amid still-subdued domestic demand, profit margins could come under pressure.


"Indeed, a breakdown of the WPI into input and output prices shows that the majority of the pick-up was driven by higher input costs (food, fuel and commodities), which accelerated to -0.5% from -2.1% in March. Output price inflation also rose, but marginally to 1.7% from 1.3%, indicating that producers in select segments also passed on higher input costs to consumers," it said in a research note.


According to Religare Capital Markets Ltd the turnaround was on due to a surge in food product inflation (led by sugar) – core WPI stayed in the negative zone, at -0.8%. "Given that the deflation in global commodity prices is moderating, we expect the WPI to continue to edge up – this is positive for a recovery in nominal growth," it added.




WPI food price inflation (primary plus manufactured) rose 5.4% in April from 4.0% in March, while core WPI (WPI manufactured ex-food) deflation eased to -0.8% from -1.1%.




The uptick in April was driven by three factors, food prices, higher global commodity prices and better domestic demand, Nomura says.


1. Food prices sequentially rose sharply led by a pick-up in the prices of pulses (4% m-o-m), vegetables (4.7%) and manufactured food such as sugar (8.4%) and tea and coffee (12.9%). Although fruit and vegetable prices typically rise during the summer months, the pick-up in the case of vegetables was stronger than a year ago, driving up y-o-y food price inflation.

2. Higher global commodity prices pushed up the prices of fuel (aviation turbine fuel, bitumen, petrol), primary non-food articles (oilseeds and fibres) and select manufactured products (basic metals and chemicals).

3. Better domestic demand pushed up the prices of cement, beverages & tobacco and wood products. However, we do not view demand-side pressures as broad-based, as segments such as paper and leather products witnessed sequential price declines.


According to Religare, the deflationary spell in the Indian economy was largely driven by a sharp fall in global crude oil and metal prices. Ex-crude oil, mineral oils and metals, WPI stood at 2.4% in April 2016 and has remained positive in 15 of the last 18 months. "Given moderating deflation in international commodities, we expect WPI to continue to rise in the near term – positive for nominal GDP growth," the report concluded.



B. Yerram Raju

1 year ago

Deflation in India if at all believed to have existed, it was in statistician's books. Retail inflation still rules roost. Food inflation is likely to touch the alarming territory with 10 states reporting drought for a consecutive second year.

Nifty, Sensex put in a counter-trend rally: Monday closing report
We had mentioned in Friday’s closing report that Nifty, Sensex were struggling to rally. The major indices of the Indian stock markets rallied, a little, on Monday to close with small gains of less than 1% over Friday’s close. Also, the trading volumes on NSE were lower. The trends of the major indices in the course of Monday’s trading are given in the table below:
Disappointing macro-economic data subdued the Indian equity markets on Monday. Consequently, key indices traded flat -- marginally in the green during the mid-afternoon session, as heavy selling pressure was witnessed in banking, capital goods and oil and gas stocks. Initially, the key indices opened on a positive note on Monday, in sync with their Asian peers. However, investors were disappointed after a key macro-economic data showed a faster rise in annual wholesale inflation. 
India's annual wholesale price index (WPI) moved up into the positive zone at 0.34% for April, from (-)0.85% in March and (-)2.43% during the corresponding month of the previous year. The WPI moved up after staying in negative zone for 17 straight months, mainly on the back of a rise in global commodity prices. The rise comes after the Consumer Price Index (CPI) for last month also showed an upward movement in annual retail inflation. The rise in both the inflation indices has reduced the chances of the Reserve Bank of India (RBI) to further ease its key lending rates during the monetary policy review scheduled in June.
Apart from the WPI, investors' sentiments were subdued after data released on May 13 showed that India's merchandise exports in April fell for the 17th straight month. Last month's exports were valued at $20.57 billion -- down 6.74% against $22.05 billion in the like month of last year.
Besides, selling pressure was witnessed in the banking sector after the Bank of Baroda (BoB) reported its second consecutive quarter of losses. The BoB's quarterly results were released after the market hours last Friday. 
China's central bank on Monday pumped 25 billion yuan ($3 billion) into the market to preserve liquidity. The People's Bank of China (PBOC) put 45 billion yuan into seven-day reverse repo, a process by which central banks purchase securities from banks with an agreement to sell them back in the future. The reverse repo was priced to yield 2.25%, according to a PBOC statement. 
The Indian Meteorological Department (IMD) on Sunday said the southwest monsoon may hit Kerala by June 7 due to a slight delay. "The statistical model forecast suggests that the monsoon onset over Kerala is likely to be slightly delayed. The southwest monsoon is likely to set over Kerala on June 7 with a model error of four days," an IMD statement said. Normally, the monsoon rains begin in Kerala on June 1. But the "slight delay" would not affect the overall cumulative rainfall in the country, IMD officials said. "We continue without prediction of 106% rainfall this year. The delay predicted in Kerala is not much. A standard deviation of four to five days expected," an IMD official told IANS. IMD also said that conditions were becoming favourable for the onset of southwest monsoon over Nicobar Island, south Andaman Sea and parts of Bay of Bengal around May 17.  Some experts had predicted that monsoon would reach Kerala by May 28 in the Andaman and Nicobar Islands by May 15. The delayed monsoon could keep the stock market bulls also waiting.
India's manufacturing sector growth may slow down during the first quarter of 2016-17 ending June owing to factors like bleak export outlook, poor demand and high cost of borrowing, industry chamber Ficci said on Sunday on the basis of its latest survey. "While the bleak export outlook is responsible for this less optimistic outlook for manufacturing production in first quarter of the current financial year, there have been several other factors that have contributed like poor demand conditions, unstable roadmap for various sectors leading to uncertainty, high interest cost, among others," it added.
The top gainers and top losers of the major indices are given in the table below:

The closing values of the major Asian indices are given in the table below:


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)