ECONOMIC UPDATE

 

Retail Inflation Rises

o  Retail inflation came to 6.26 %

o  Second consecutive month where the CPI inflation has been above 6 %

o  This compares to CPI inflation of 6.30 percent for May, which was the highest in six months. June is the second consecutive month when headline retail inflation is above the Monetary Policy Committee's inflation targeting range of 4 (+/-2) percent.

IIP rises 29.3% YoY due to low base effect

o  IIP has come to 29.3 % positive figure

o  It is due to low base effect

o  A low base effect has led to industrial production in India expanding by nearly 30 percent year-on-year in May, against a massive 134 percent rise in April and a 22.4 percent rise in March.

o  When compared with May 2019, however, the industrial output showed a contraction of 13.4 percent.

G20 approves minimum Global corporate tax

o  The G20 Finance Ministers on July 10 approved a global corporate tax of at least 15 percent to be imposed on multinational companies (MNCs) with an aim to end tax havens.

o  The 15 percent minimum rate comes from endorsement of 132 countries and territories, who want to “end global competition to offer lowest corporate taxes”,

o  The G20 mainly consists of members of the Organization for Economic Cooperation and Development (OECD) – Argentina, Australia, Brazil, Canada, China, France, Germany, Japan, India, Indonesia, Italy, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, the UK, the US, and the EU. Spain is a permanent guest.