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Economy

Weekly Inflation at 12.11% (PA), Huge Revisions

Primary Articles and Fuel Inflation are going up yet again. Primary articles was up 12.11% from last year and Fuel was up 13.53%.

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And then, Look at the past revisions once again – a whopping 1.9% higher inflation than earlier released!

Originally declared for 26 Feb: 13.96%

Revised today for 26 Feb: 15.86%

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There’s talk of a Rs. 5 hike in Diesel and perhaps just about that much in Petrol. You can imagine what that will do to reported inflation. (Of course, it will bring demand down eventually, but it will in the process make a lot of things more expensive)

  • Anonymous says:

    >What probability would you put on inflation having peaked for the next few months?

    Commodities have been coming down over the last week, dollar might put in some sort of a rally.

    And, if I want to bet that inflation has peaked for this year, what would I buy other than banks? Is FMCG better? Something that is not dependent on growth being high and that can deal with potential shocks in China/Europe. I guess consumer staples part of FMCG may be good?

  • Deepak Shenoy says:

    >Anon: I think Inflation's going higher till maybe October.

    Inflation peaking will be known in retrospect. If you bet inflation has peaked in commodities then the best thing to buy are staples, food, metals and minerals…