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Charts & Analysis

Primary Articles Inflation Down To 13.96% for Feb 26, 2011

Primary Articles Inflation for Feb 26, 2011 has mellowed down to 13.96%. This is the lowest figure since November 2009, which is a good sign.
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Yet, the problem is the past revisions. Jan 1, 2001 figures were first announced at 17.58%, but they have been revised to 19.76%, higher by 2.18%.

The trend on primary articles inflation is downwards, but it still remains quite high. Importantly,though, the index last year was benign till March, and then started to rise – which means if the current trend continues this year, we should see lower headline numbers. But the huge upward revisions are a concern.

Tell me if this is not of interest. I’ve been posting such charts for around a year now, but I don’t know if enough of you care. Perhaps we should visualize these in a different way. Do let me know your thoughts.

  • Ajay says:

    >This primary article inflation doesn't affect middle-class and rich class (in short, all of your readers). I am not able to visualize its impact (other than repo-rate and reverse-repo-rate).
    How it will matter to us, other than increase in interest rate? I understand it slows down bubble formation in real estate. Any other effect of it?
    In short, why should I be bother about it?

  • abhikush says:

    >Yes please continue to post these.

    On an unrelated note, the comments don't seem to work with Firefox 4 RC.

  • Pi says:

    >the graphs are helpful, maybe not on an individual basis.. but overall as a collective tool..

    regardless of that, i think this particular weeks number is quite important. i looked at the graph before looking at your comments, and the first thing to jump out to me was that inflation was lowest in around 16-17 months.. i had not realized earlier that inflation had been consistently so high for so long, and most of us had not, cause market had not realized it as a problem.. frm nov-09 to nov-10 it wasn't a problem, and then one fine day in nov-10 it suddenly became a problem.. quite interesting uh

    anyways, i looked at the number carefully this time round cause i was looking for exactly this moderation. in fact we should see a slide in inflation numbers in coming 2-3 months.

    we are in a long term bull market, and we have believe in the simple fact that stock prices will keep moving higher, at times in fits and starts, at times smoothly. we've now seen a sideways market for nearly 6months, earnings will grow by another 15-20% in another year, and its time we began a fresh uptrend. i was expecting this the other way round in oct.. first a move to 7k, then a crash to 5k.. then a base for 3-4 months, then the bull continues, like in 04 & 06. but we've seen a different kind, large cap index 15%, mid caps 20-50%. so midcaps have seen the equivalent of crash level correction

    wt is awaited are a couple of triggers for the uptrend to resume. first is the moderation in inflation numbers. if things just cool off a little on middle east front, we should be on our way to fresh uptrend, to see new highs later in the year..