Primary Articles Inflation as of 27 Nov 2010 is now at 12.66%, down from the 12.72% reported last week. This is because of a large base impact – last year had seen a big rise at this time. The issue is that going forward, the index flattened out last year – and it needs to do the same thing this year as well.
Bigger issue? Past revisions. the 2 october data was revised to 19.65%, a much higher figure than the 18.54% earlier reported. Look at the revisions (since the base year of the index was moved from 93-94 to 04-05)
I wonder if that spooked markets today? Oh, we’ll know soon enough.
Previous Inflation Posts:
- Dec 02 2010: Inflation: Primary Articles at 12.72%, and a HUGE past revision
- Nov 16, 2010: October Monthly Inflation down to 8.58%
- Oct 29. 2010: Primary Articles Inflation Down to 16.62%
- Oct 22, 2010: Primary Articles Inflation down at 18.05%
- Oct 18, 2010: Inflation: September at 8.62%, Marginally Up
