Latest news with #CRISIL
Hans India
3 days ago
- Business
- Hans India
Headline inflation low; core inflation rising
Kolkata: Leading ratings agency CRISIL Limited in its report said that headline inflation based on the CPI fell to 2.8 per cent in May, 2025, which is a good omen for the economy. According to CRISIL, a decline in food inflation is pulling down the headline retail inflation, but core inflation is edging up. The core inflation basket in India includes all items in the CPI basket except for food and fuel. This typically includes items like: clothing and footwear; housing; household goods and services; health; education; transport and communication; personal care; and, recreation and entertainment. Although remaining below the decadal trend, the core inflation has been now above four per cent for four months in a row. CRISIL said a persistent rise in core inflation can put pressure on headline inflation. According to the ratings firm, rising core inflation is indicative of strengthening domestic demand in the economy.
The Print
4 days ago
- Business
- The Print
Decline in headline inflation good news, but core inflation edging up: CRISIL
CRISIL said a persistent rise in core inflation can put pressure on headline inflation. According to CRISIL, a decline in food inflation is pulling down the headline retail inflation, but core inflation (excluding food and fuel) is edging up. Although remaining below the decadal trend, the core inflation has been now above four per cent for four months in a row. Kolkata, Jun 19 (PTI) Leading ratings agency CRISIL Limited in its report said that headline inflation based on the CPI fell to 2.8 per cent in May, 2025, which is a good omen for the economy. According to the ratings firm, rising core inflation is indicative of strengthening domestic demand in the economy. 'But a deep dive into core inflation suggests that most of its recent rise is tied to global economic volatility rather than domestic factors. CRISIL said gold prices react to global and not domestic signals. 'Although gold carries a small weight in the headline CPI (1.1 per cent of the total index), inclusion of it in the core CPI inflation distorts domestic price signals. Gold carries a higher weight in India's core inflation index than it does elsewhere. Other prominent central banks also include gold in their core inflation index, but its weight is significantly lower than in India, limiting its impact on their core inflation measure. In India, a higher weight for gold is possibly due to its higher share in consumption compared to other countries. Keeping out gold prevents misinterpretations of core CPI signals, CRISIL said in the report. PTI dc RG This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
4 days ago
- Business
- Time of India
India's inflation cheer also has a growing ‘core' concern
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel CRISIL has said that while India's headline inflation based on the Consumer Price Index (CPI) fell to 2.8 per cent in May 2025 — a good signal for the economy — a rise in core inflation could present fresh to CRISIL, the decline in food inflation is helping bring down the headline retail inflation figure. However, core inflation, which excludes food and fuel, is edging up. Although still below the average of the past decade, core inflation has now stayed above four per cent for four consecutive said that if this rise in core inflation continues, it could start pushing headline inflation ratings firm said that rising core inflation typically reflects strengthening domestic demand. 'But a deep dive into core inflation suggests that most of its recent rise is tied to global economic volatility rather than domestic factors.'The report also highlighted the role of gold in shaping India's core inflation trends. CRISIL said that gold prices respond to global rather than domestic signals. 'Although gold carries a small weight in the headline CPI (1.1 per cent of the total index), inclusion of it in the core CPI inflation distorts domestic price signals.'Gold carries a higher weight in India's core inflation index than it does in other countries. While other major central banks also include gold in their core inflation calculations, its impact is much smaller because the weight is significantly said India's higher weighting for gold could be due to its larger share in domestic consumption compared to other nations. The agency said that removing gold from core inflation could help avoid misreading price signals.(with PTI inputs)
Economic Times
4 days ago
- Business
- Economic Times
India's inflation cheer also has a growing ‘core' concern
CRISIL has said that while India's headline inflation based on the Consumer Price Index (CPI) fell to 2.8 per cent in May 2025 — a good signal for the economy — a rise in core inflation could present fresh challenges. According to CRISIL, the decline in food inflation is helping bring down the headline retail inflation figure. However, core inflation, which excludes food and fuel, is edging up. Although still below the average of the past decade, core inflation has now stayed above four per cent for four consecutive months. CRISIL said that if this rise in core inflation continues, it could start pushing headline inflation ratings firm said that rising core inflation typically reflects strengthening domestic demand. 'But a deep dive into core inflation suggests that most of its recent rise is tied to global economic volatility rather than domestic factors.' The report also highlighted the role of gold in shaping India's core inflation trends. CRISIL said that gold prices respond to global rather than domestic signals. 'Although gold carries a small weight in the headline CPI (1.1 per cent of the total index), inclusion of it in the core CPI inflation distorts domestic price signals.' Gold carries a higher weight in India's core inflation index than it does in other countries. While other major central banks also include gold in their core inflation calculations, its impact is much smaller because the weight is significantly said India's higher weighting for gold could be due to its larger share in domestic consumption compared to other nations. The agency said that removing gold from core inflation could help avoid misreading price signals. (with PTI inputs)
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Business Standard
11-06-2025
- Business
- Business Standard
Credit rating stocks CRISIL, CARE rally 6% in Wednesday's trade; here's why
Share price movement of credit ratings companies Shares of listed credit ratings companies CRISIL and CARE Ratings rallied 6 per cent on the BSE in Wednesday's intra-day trade on a healthy business outlook. Share price of CARE Ratings hit a record high of ₹1,946, as they surged 6 per cent on the BSE in intra-day trade. CRISIL's share price also soared 6 per cent to ₹5,849.40 in intra-day trade. In the past one month, the stock price of CARE Ratings and CRISIL have zoomed by 51 per cent and 20 per cent, respectively. Meanwhile, ICRA was up 1.5 per cent at ₹6,695.10 in intra-day trade today, and has rallied 17 per cent in the past one month. What's driving the rally in credit ratings stocks? Analysts remains positive on Domestic Ratings business and expects bond issuances to increase over coming quarters aided by monetary easing and softening corporate spreads. Structural growth drivers of strong competitive position and premium pricing stay unaffected. Meanwhile, Banking, Financial Services, and Insurance (BFSI) sector post Reserve Bank of India (RBI) meeting is in limelight, as reversal in interest rate cycle to boost credit off-take, thereby easing of liquidity to aid margin trend which will support return ratios. While prudently balancing fiscal consolidation and growth objectives, the Union Budget for FY26 has announced several measures under four engines of growth – agriculture, MSMEs, investment and exports. The tax cuts on individuals as announced in the Union Budget for FY26 are set to increase disposable income, boosting consumer spending and improving their loan eligibility which is expected to drive demand for credit. In FY25, the Indian economy faced multiple headwinds, including slowing global growth, weakness in external demand, and a volatile global environment. Investment activity was dampened by a slowdown in public capex, resulting in a moderation of gross fixed capital formation growth to 6.1 per cent in FY25 from 8.8 per cent in FY24. Bank credit growth to large industries and the services sector combined, moderated to 10.1 per cent as of March 2025, compared to 16.7 per cent a year earlier. The slowdown in credit to services can largely be attributed to the increased risk weightage for non banking finance companies (NBFCs). The restoration of risk weights on bank exposure to NBFCs is expected to support credit growth going forward, according to CARE Ratings. Looking ahead, GDP growth is projected to moderate further to 6.2 per cent in FY26. Key headwinds for the Indian economy stem from continued uncertainties around global trade policies and their impact on global growth. Nonetheless, moderation in inflation, prospects of a normal monsoon, and lower interest rates are expected to support the Indian economy in the coming year, the rating agency said. Though ongoing global uncertainty could retain pressure on discretionary spends of large global banks in the near term, CRISIL has started witnessing some traction in business discussion with customers. Management revealed that global banks continue to invest in transformation initiatives (across cloud, data & analytics, AI/ML and automation) and there is demand for cost effective solutions from asset managers. CRISIL has pivoted its strategy on growth areas and opportunities in Global research and Risk Solutions (GR&RS) business and has made investments in sales, capabilities, and offerings for building the revenue pipeline. If macro uncertainty recedes and discretionary spends improve, then it should accelerate the growth momentum being built by CRISIL. In Global Benchmarking Analytics (GBA) business, the growth is being driven by regional banks, asset managers and other identified opportunities. Analysts at YES Securities expect a meaningful improvement in revenue growth of CRISIL through CY25/26, aided by gradual growth turnaround in GR&RS and sustained momentum in other businesses. While rising share of Domestic Ratings revenue would be margin accretive, there are margin levers in each business (operating leverage, pricing, efficiency, value addition, etc.) with no significant challenges on cost/people front at this point.
