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Economy

Primary Articles Inflation down at 18.05%

Primary Articles Inflation is down from 18.54% last week to 18.05% this week. 14th August data was revised up from 15.5% to 15.88%. The index last year steepened after October, so unless we see another inflationary hike right now, the headline number should come down – still, 18% down to what, 10%? That’s still too high – and means negative real rates.

Primary Articles Inflation at 18.05%

Posts on Inflation:

  • neel says:

    >Well it should down further so that people should get relief. The Food inflation is bit down but the demand force may led this to up, as festivals are round the corner.

  • Anonymous says:

    >Initial read of G20 summit indicates at least on the face that Asian Competitors have agreed not to devalue their currencies. This will mean stronger Asian Currencies against USD.(Especially Yuan, Won). INR could be on the fence but appears will strengthen. This means more liquidity flows?? Means more WPI inflation in future?? First indications will be in currency markets, Gold Markets when they open on Monday. Expect USD down and Gold up.

    MK

  • Deepak Shenoy says:

    >If rupee strengthens won't it mean less liquidity flows? (i.e. dollar buys less rupees, so it's relatively expensive etc.)

    WPI inflation as related to commodities might not change, if the dollar value of the commodities drop. Earlier the dollar value of food was about the same, and the exchange rate determined how much it used to cost us. Now even staple food items are getting more expensive, dollar wise, so the rupee needs to appreciate just to stay in the same place relatively 🙂

  • Anonymous says:

    >I think it will be other way around. As we have seen in the last 2 months, FIIs want appreciating currencies and growth prospects and higher yield which INR offers. Hence the trend of last 2 months will continue. May be I am reading it wrong.

    MK