Oil prices rose again overnight to their highest levels since January on supply worries. Rice prices also surged to 15-year highs. Any return of food price inflation would be a headache for central banks.
In our deep dive interview, ANZ’s Chief Economist for Southeast Asia and India, Sanjay Mathur, explains why tomato prices are up 800% in parts of India, and why that’s worrying the Reserve Bank of India.
5 things to know
Brent crude prices jumped 1.6% to US$87.50/bbl as Russia and Saudi Arabia limited oil supplies. Rice prices hit a 15-year high on bad weather.
China fell back into CPI deflation in July for the first time since early 2021.
US CPI inflation data tonight is seen stuck at 0.2% in July vs June.
The RBI is expected to hold its cash rate at 6.5%, but with a hawkish tone.
Italy backtracked on its windfall profits tax on banks after share prices slumped.
Cheers
Bernard
PS: Watch out for Chinese CPI and PPI deflation data today, and the Reserve Bank of India’s decision tomorrow.
