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Charts & Analysis

PA Inflation Edges up to 11.75%

Primary Articles Inflation was at 11.75% for the week ended 15 October 2011, up from last week’s 11.18%. This is expected, to a certain extent as the index levelled off here last year. The lower base is in existence till November 5.

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Interestingly, the number for 20 August was revised DOWN by 0.39% from 12.93% down to 12.54%.

This number is still too high. At this rate of move, we’ll still be above 8% in December, and remember that the current level is already 10% higher than March end 2011.  (the index had a local peak in Jan)

  • Shankar says:

    Deepak,
    Thank you for posting such great numbers. One can understand the efforts that go into preparing these charts. The blog’s focus has drastically shifted to inflation. The posts are academic. As a regular reader, may I ask what would be the (real life) repercussions of this? Why this excessive focus on inflation, when it has been around for a long time now? I can remember several articles from my childhood (20 years back) shrinking in size and getting a bigger sticker price. But, aside from being anecdotal why should we care about inflation?
    I think it is not a political issue, since it would be difficult to make people understand economic principles and vote based on that.
    It is not affecting markets much, going by the year long volatile trend we see…Just curious questions from your regular reader. Thanks.

    • Thanks Shankar – yes, I’ve been very worried about inflation recently. The thing is that it affects everything. I am writinga post now about how we have nearly destroyed ourselves with the infaltion – margins have collapsed for the index and for the individual stocks. Plus social unrest is a problem if there continues to be inflation – and it is political in the sense that elections have been won and lost on price rises.
      you’re right that it hasn’t affected markets that much till now, but I think it will.
      Also I take your point that it has occupied too much mindshare on the blog! Will diversify.

  • bemoneyaware says:

    Most of us have adjusted(reluctantly) to high inflation and do not expect it to come down anytime soon. It is boiling down to how to manage as “Mehangai maar rahi hai”