Inflation faced by Indian consumers shot up to a nearly eight-year high of 7.8% in April from 6.95% in March, with rural inflation accelerating to 8.4% and urban parts of the country experiencing 7.1% inflation, as per data released by the National Statistical Office on Thursday. The Consumer Food Price Index jumped to 8.4% from 7.7% in March, with food prices rising at a faster clip of 8.5% in rural India. This is the fourth month in a row that retail inflation has stayed above the 6% mark, which is the outer limit for inflation tolerance under the monetary policy framework. Food inflation at 8.4% is significant as even cereals inflation is high because of higher wheat prices, said Bank of Baroda chief economist Madan Sabnavis, pointing to the higher diversion for exports as the cause for shortages in the country. Fuel and lighting has a high inflation of 10.8% and there has to be some reduction in taxes and duties from the government to cool off price pressures, he added. Economists said the sharp jump in retail inflation explains the central bank's rush to raise interest rates in an off-cycle meeting last week and is likely to be backed by another rate hike in the coming monetary policy review of June. While the Finance Ministry didn't react to April's inflation numbers, it said in a report that the risk of sustained high inflation is low for India as aggregate demand recovery remains slow. India's inflation experience has not been as bad as several advanced nations and rising prices have had a lesser impact on lower income households in the country than high-income ones, the ministry argued in its monthly economic review for April. Transport and Communication inflation raced to nearly 11% in April from just 8% in March. Food and beverages inflation sped up from 7.47% in March to 8.1% in April, led primarily by a sharp rise in vegetables inflation from 11.6% in March to 15.4%, even as the price rise in oil and fats eased marginally to 17.3% from 18.8% in March. Meat and fish inflation also cooled a bit from 9.63% in the previous month to about 7% in April. Clothing and footwear costs continued to be a bugbear for households, with combined inflation of 9.85% in April up from 9.4% in March, with footwear prices rising at 12.12% and clothing costs by a sharp 9.51%. Sabnavis said that manufactured goods such as personal care, household goods prices are unlikely to come down. ICRA chief economist said April's retail inflation print is the highest in 95 months and overshot its 7.4% estimate significantly. "A sharp but expected spike in food inflation pushed up the headline figure, even as core inflation printed at a rather unpleasant level. The negative surprise was largely on account of miscellaneous items, fuel and light, and clothing and footwear, raising the spectre of a generalisation of inflationary pressures," she noted. Among the States, West Bengal and Madhya Pradesh recorded a much higher inflation rate than the national average, at 9.1%, closely followed by Telangana and Haryana which reported inflation of around 9%. By contrast, Kerala (5.08%) and Tamil Nadu (5.37%) clocked the lowest inflation rates in April. Though ICRA expects May's inflation rate to cool off due to base effects, it will still hover over 6.5%. "The early data for May 2022 revealed a continued sequential uptrend in the average prices of edible oils, atta and wheat, reflecting the fallout of global supply disruptions triggered by the geopolitical conflict, including the palm oil export ban by Indonesia. Moreover, there has been an uptick in the average prices of some vegetables like tomatoes, potatoes, ginger, iodised salt, and fruits like apples and papayas," Nayar said. Gotabaya appoints Ranil as Prime Minister Sri Lankan President Gotabaya Rajapaksa on Thursday appointed former PM Ranil Wickremesinghe as Premier, in a bid to restore stability in the island nation in the midst of a political impasse and stifling economic crisis. This is the sixth time Wickremesinghe, 73, has been appointed to the office — he has never finished a full term — and will have the task of arresting the devastating impact of the island's economic downturn, that too under President Gotabaya Rajapaksa who is fiercely detested by disgruntled citizens demanding his resignation. Gotabaya's older brother Mahinda Rajapaksa resigned as Prime Minister on Monday, hours after his supporters violently attacked anti-government protesters. Wickremesinghe's United National Party (UNP) was decimated in the 2020 general elections, in which the Rajapaksas secured a two-thirds majority. Wickremesinghe is currently the only member of Parliament from his party. Although he lost the 2020 general elections, the UNP nominated him to legislature on the national list, through Sri Lanka's proportional representation system that allocates political parties a certain number of seats based on total votes polled. Just ahead of the 2020 poll, Wickremesinghe's former deputy Sajith Premadasa broke away from the UNP and formed the Samagi Jana Balawegaya (SJB or United People's Force), the main Opposition party now. Wickremesinghe's majority in Parliament is contingent on substantial support from the ruling party. Most of its members have promised to back him, according to political sources. Meanwhile, Opposition Leader Sajith Premadasa too said he was willing to form a new government if the President committed to stepping down within "a minimum time frame". Premadasa made his offer conditional, seeking new laws to strengthen parliament and abolish Executive Presidency. Even before Wickremesinghe was sworn in by the President, some religious leaders objected to the move, contending that it was "not the solution" people want, and that it would further escalate the crisis. Prominent Buddhist monk Omalpe Sobitha Thero said Ranil Wickremesinghe was "not suitable" for the job. His appointment "completely disregarded" the proposal made by their high-ranking monks to appoint an all-party interim government and was aimed at the "sole protection" of the Rajapaksas, he said. Archbishop of Colombo Cardinal Malcolm Ranjith, was quoted by local media as saying, "People want a person with integrity, not someone who has been defeated in politics." The political opposition too expressed strong disapproval at the President's choice. Leader of the leftist Janata Vimukthi Peramuna (JVP) Anura Kumara Dissanayake said: "Ranil protects the Rajapaksas, and the Rajapaksas protect Ranil. No citizen in this country will fall for their conspiracy this time." Tamil National Alliance lawmaker M.A. Sumanthiran said: "The President has completely lost legitimacy, people want him to go home, and the Parliament will soon vote on a motion expressing displeasure over him. Wickremesinghe had no legitimacy in the current Parliament right from the beginning. He did not even win in his constituency." The Parliament stands adjourned till May 17, when the vote on the President is scheduled to be taken up. Wickremesinghe may face a trust vote soon after. In order to continue as Prime Minister, he must show he has the confidence of the House. Allahabad HC rejects plea seeking to open 20 rooms of Taj Mahal The Allahabad High Court on May 12 dismissed a plea seeking a ''fact-finding inquiry'' into the history of the Taj Mahal and the "opening of 22 rooms'' on the monument's premises, saying the petitioner failed to point out which of his legal or constitutional rights were being infringed. The Lucknow bench of justices D.K. Upadhyay and Subhash Vidyarthi pulled up the lawyer of petitioner Rajneesh Singh, who is the media in-charge of the BJP's Ayodhya unit, for filing the PIL in a "casual" manner and said it cannot pass an order under Article 226 of the Constitution in the matter. The article empowers a high court to issue to any person or authority in the area under its jurisdiction orders or writs to enforce the fundamental rights. The bench said that the petitioner could not point out as to which of his legal or constitutional rights were being infringed. The petitioner's lawyer Rudra Vikram Singh urged the court to permit him to withdraw the petition and file a fresh plea, but the bench did not accept his request and dismissed the petition. The writ petition was filed on May 7 in the registry of the Lucknow bench of the High Court by Rajneesh Singh, seeking a fact-finding inquiry into the history of the Taj Mahal. It also sought opening of the doors of its "22 rooms" to see "the truth, whatever it is". Several Hindu right-wing outfits have claimed in the past that the Mughal-era mausoleum was a Lord Shiva temple. The monument is protected by the Archaeological Survey of India (ASI). The petition also sought the setting aside of certain provisions of The Ancient and Historical Monuments and Archaeological Sites and Remains (Declaration of National Importance) Act 1951, and The Ancient Monuments and Archaeological Sites and Remains Act 1958, under which the Taj Mahal, Fatehpur Sikri, Agra Fort, Itimad-ud-Daulah's tomb were declared historical monuments. Gyanvapi mosque: Court rejects plea to change official, survey to be completed by May 17 A district court in Varanasi on May 12 rejected the plea to change the court-appointed advocate commissioner for conducting a video survey of the Gyanvapi-Shringar Gauri complex and appointed two additional advocate commissioners to assist him. The court also directed for the completion of the survey by May 17 and submission of its report, Abhay Nath Yadav, who is representing the Gyanvapi mosque management committee, said. The court of Civil Judge (Senior Division) Ravi Kumar Diwakar, which had also heard the matter relating to the opening of the two basements located inside the mosque complex for videography, delivered the verdict after hearing the arguments of both the sides. The Gyanvapi mosque management committee had filed an application seeking a replacement of court official Ajay Kumar Mishra, who was assigned to do the survey, claiming he was not impartial. Russia strikes Ukraine's east as Finland inches closer to joining NATO Russia pounded areas in Ukraine's east on May 12, including the last pocket of resistance in besieged Mariupol, as the war pushed Finland closer to ending decades of neutrality and seeking NATO membership. The conflict on the ground slogged on even as the globe-shaking repercussions of the invasion spread, with Ukraine's military recapturing some towns and villages in the country's northeast but acknowledging that Russian forces have seen "partial success" farther south in the eastern industrial heartland of the Donbas. Finland's president and prime minister today said that the Nordic country should apply "without delay" for membership in the Western alliance, founded in part to counter the Soviet Union. The announcement means Finland is all but certain to join the military alliance, though a few steps remain before the application process can begin. Neighbouring Sweden is expected to decide on joining NATO within days. Russia said the move would not help stability and security in Europe. Kremlin spokesman Dmitry Peskov said Russia's response would depend on what specific steps NATO took to bring its infrastructure closer to Russian borders. Finland and Russia share a 1,340-kilometer (830-mile) land border. NATO's support of Ukraine — particularly by supplying weapons — has been critical to Kyiv's surprising success in stymieing Russia's invasion, which began on February 24. Many observers thought Moscow's larger and better-armed military would be hard to stop, but the Ukrainians have bogged Russian troops down and thwarted their goal of overrunning the capital. In Brief Astronomers on Thursday unveiled the first image of the supermassive black hole at the centre of our own Milky Way galaxy. The finding, published in The Astrophysical Journal Letters, provides overwhelming evidence that the object is indeed a black hole and yields valuable clues about the workings of such giants, which are thought to reside at the centre of most galaxies. The image was produced by a global research team called the Event Horizon Telescope (EHT) Collaboration, using observations from a worldwide network of radio telescopes. Evening Wrap will return tomorrow

The Evening Wrap

12 MAY 2022


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Inflation soars near 8-year high to 7.8% in April

The Consumer Food Price Index jumped to 8.4% from 7.7% in March, with food prices rising at a faster clip of 8.5% in rural India. This is the fourth month in a row that retail inflation has stayed above the 6% mark, which is the outer limit for inflation tolerance under the monetary policy framework.

Food inflation at 8.4% is significant as even cereals inflation is high because of higher wheat prices, said Bank of Baroda chief economist Madan Sabnavis, pointing to the higher diversion for exports as the cause for shortages in the country. Fuel and lighting has a high inflation of 10.8% and there has to be some reduction in taxes and duties from the government to cool off price pressures, he added.

Economists said the sharp jump in retail inflation explains the central bank's rush to raise interest rates in an off-cycle meeting last week and is likely to be backed by another rate hike in the coming monetary policy review of June.

While the Finance Ministry didn't react to April's inflation numbers, it said in a report that the risk of sustained high inflation is low for India as aggregate demand recovery remains slow. India's inflation experience has not been as bad as several advanced nations and rising prices have had a lesser impact on lower income households in the country than high-income ones, the ministry argued in its monthly economic review for April.

Transport and Communication inflation raced to nearly 11% in April from just 8% in March. Food and beverages inflation sped up from 7.47% in March to 8.1% in April, led primarily by a sharp rise in vegetables inflation from 11.6% in March to 15.4%, even as the price rise in oil and fats eased marginally to 17.3% from 18.8% in March. Meat and fish inflation also cooled a bit from 9.63% in the previous month to about 7% in April.

Clothing and footwear costs continued to be a bugbear for households, with combined inflation of 9.85% in April up from 9.4% in March, with footwear prices rising at 12.12% and clothing costs by a sharp 9.51%. Sabnavis said that manufactured goods such as personal care, household goods prices are unlikely to come down.

ICRA chief economist said April's retail inflation print is the highest in 95 months and overshot its 7.4% estimate significantly. "A sharp but expected spike in food inflation pushed up the headline figure, even as core inflation printed at a rather unpleasant level. The negative surprise was largely on account of miscellaneous items, fuel and light, and clothing and footwear, raising the spectre of a generalisation of inflationary pressures," she noted.

Among the States, West Bengal and Madhya Pradesh recorded a much higher inflation rate than the national average, at 9.1%, closely followed by Telangana and Haryana which reported inflation of around 9%. By contrast, Kerala (5.08%) and Tamil Nadu (5.37%) clocked the lowest inflation rates in April. Though ICRA expects May's inflation rate to cool off due to base effects, it will still hover over 6.5%.

"The early data for May 2022 revealed a continued sequential uptrend in the average prices of edible oils, atta and wheat, reflecting the fallout of global supply disruptions triggered by the geopolitical conflict, including the palm oil export ban by Indonesia. Moreover, there has been an uptick in the average prices of some vegetables like tomatoes, potatoes, ginger, iodised salt, and fruits like apples and papayas," Nayar said.

Gotabaya appoints Ranil as Prime Minister

Sri Lankan President Gotabaya Rajapaksa on Thursday appointed former PM Ranil Wickremesinghe as Premier, in a bid to restore stability in the island nation in the midst of a political impasse and stifling economic crisis.

This is the sixth time Wickremesinghe, 73, has been appointed to the office — he has never finished a full term — and will have the task of arresting the devastating impact of the island's economic downturn, that too under President Gotabaya Rajapaksa who is fiercely detested by disgruntled citizens demanding his resignation.

Gotabaya's older brother Mahinda Rajapaksa resigned as Prime Minister on Monday, hours after his supporters violently attacked anti-government protesters. Wickremesinghe's United National Party (UNP) was decimated in the 2020 general elections, in which the Rajapaksas secured a two-thirds majority. Wickremesinghe is currently the only member of Parliament from his party. Although he lost the 2020 general elections, the UNP nominated him to legislature on the national list, through Sri Lanka's proportional representation system that allocates political parties a certain number of seats based on total votes polled.

Just ahead of the 2020 poll, Wickremesinghe's former deputy Sajith Premadasa broke away from the UNP and formed the Samagi Jana Balawegaya (SJB or United People's Force), the main Opposition party now.

Wickremesinghe's majority in Parliament is contingent on substantial support from the ruling party. Most of its members have promised to back him, according to political sources.

Meanwhile, Opposition Leader Sajith Premadasa too said he was willing to form a new government if the President committed to stepping down within "a minimum time frame". Premadasa made his offer conditional, seeking new laws to strengthen parliament and abolish Executive Presidency.

Even before Wickremesinghe was sworn in by the President, some religious leaders objected to the move, contending that it was "not the solution" people want, and that it would further escalate the crisis.

Prominent Buddhist monk Omalpe Sobitha Thero said Ranil Wickremesinghe was "not suitable" for the job. His appointment "completely disregarded" the proposal made by their high-ranking monks to appoint an all-party interim government and was aimed at the "sole protection" of the Rajapaksas, he said.

Archbishop of Colombo Cardinal Malcolm Ranjith, was quoted by local media as saying, "People want a person with integrity, not someone who has been defeated in politics."

The political opposition too expressed strong disapproval at the President's choice. Leader of the leftist Janata Vimukthi Peramuna (JVP) Anura Kumara Dissanayake said: "Ranil protects the Rajapaksas, and the Rajapaksas protect Ranil. No citizen in this country will fall for their conspiracy this time."

Tamil National Alliance lawmaker M.A. Sumanthiran said: "The President has completely lost legitimacy, people want him to go home, and the Parliament will soon vote on a motion expressing displeasure over him. Wickremesinghe had no legitimacy in the current Parliament right from the beginning. He did not even win in his constituency."

The Parliament stands adjourned till May 17, when the vote on the President is scheduled to be taken up. Wickremesinghe may face a trust vote soon after. In order to continue as Prime Minister, he must show he has the confidence of the House.

Allahabad HC rejects plea seeking to open 20 rooms of Taj Mahal

The Allahabad High Court on May 12 dismissed a plea seeking a ''fact-finding inquiry'' into the history of the Taj Mahal and the "opening of 22 rooms'' on the monument's premises, saying the petitioner failed to point out which of his legal or constitutional rights were being infringed.

The Lucknow bench of justices D.K. Upadhyay and Subhash Vidyarthi pulled up the lawyer of petitioner Rajneesh Singh, who is the media in-charge of the BJP's Ayodhya unit, for filing the PIL in a "casual" manner and said it cannot pass an order under Article 226 of the Constitution in the matter.

The article empowers a high court to issue to any person or authority in the area under its jurisdiction orders or writs to enforce the fundamental rights. The bench said that the petitioner could not point out as to which of his legal or constitutional rights were being infringed.

The petitioner's lawyer Rudra Vikram Singh urged the court to permit him to withdraw the petition and file a fresh plea, but the bench did not accept his request and dismissed the petition. The writ petition was filed on May 7 in the registry of the Lucknow bench of the High Court by Rajneesh Singh, seeking a fact-finding inquiry into the history of the Taj Mahal. It also sought opening of the doors of its "22 rooms" to see "the truth, whatever it is".

Several Hindu right-wing outfits have claimed in the past that the Mughal-era mausoleum was a Lord Shiva temple. The monument is protected by the Archaeological Survey of India (ASI). The petition also sought the setting aside of certain provisions of The Ancient and Historical Monuments and Archaeological Sites and Remains (Declaration of National Importance) Act 1951, and The Ancient Monuments and Archaeological Sites and Remains Act 1958, under which the Taj Mahal, Fatehpur Sikri, Agra Fort, Itimad-ud-Daulah's tomb were declared historical monuments.

Gyanvapi mosque: Court rejects plea to change official, survey to be completed by May 17

A district court in Varanasi on May 12 rejected the plea to change the court-appointed advocate commissioner for conducting a video survey of the Gyanvapi-Shringar Gauri complex and appointed two additional advocate commissioners to assist him. The court also directed for the completion of the survey by May 17 and submission of its report, Abhay Nath Yadav, who is representing the Gyanvapi mosque management committee, said.

The court of Civil Judge (Senior Division) Ravi Kumar Diwakar, which had also heard the matter relating to the opening of the two basements located inside the mosque complex for videography, delivered the verdict after hearing the arguments of both the sides.

The Gyanvapi mosque management committee had filed an application seeking a replacement of court official Ajay Kumar Mishra, who was assigned to do the survey, claiming he was not impartial.

Russia strikes Ukraine's east as Finland inches closer to joining NATO

Russia pounded areas in Ukraine's east on May 12, including the last pocket of resistance in besieged Mariupol, as the war pushed Finland closer to ending decades of neutrality and seeking NATO membership.

The conflict on the ground slogged on even as the globe-shaking repercussions of the invasion spread, with Ukraine's military recapturing some towns and villages in the country's northeast but acknowledging that Russian forces have seen "partial success" farther south in the eastern industrial heartland of the Donbas.

Finland's president and prime minister today said that the Nordic country should apply "without delay" for membership in the Western alliance, founded in part to counter the Soviet Union. The announcement means Finland is all but certain to join the military alliance, though a few steps remain before the application process can begin. Neighbouring Sweden is expected to decide on joining NATO within days.

Russia said the move would not help stability and security in Europe. Kremlin spokesman Dmitry Peskov said Russia's response would depend on what specific steps NATO took to bring its infrastructure closer to Russian borders. Finland and Russia share a 1,340-kilometer (830-mile) land border.

NATO's support of Ukraine — particularly by supplying weapons — has been critical to Kyiv's surprising success in stymieing Russia's invasion, which began on February 24. Many observers thought Moscow's larger and better-armed military would be hard to stop, but the Ukrainians have bogged Russian troops down and thwarted their goal of overrunning the capital.

In Brief

Astronomers on Thursday unveiled the first image of the supermassive black hole at the centre of our own Milky Way galaxy. The finding, published in The Astrophysical Journal Letters, provides overwhelming evidence that the object is indeed a black hole and yields valuable clues about the workings of such giants, which are thought to reside at the centre of most galaxies. The image was produced by a global research team called the Event Horizon Telescope (EHT) Collaboration, using observations from a worldwide network of radio telescopes.

Evening Wrap will return tomorrow