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Charts & Analysis

Oct 2012 Inflation Dips Slightly to 7.45%

Official figures show October 2012 Inflation (based on Wholesale Prices) at 7.45%, slightly lower that September’s 7.81%.

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The problem is that this data is likely to be revised substantially. August data, first announced at 7.55% has now been revised to +8.01% – the first 8% plus figure since November 2011.

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So what seems to be 7.45% today may actually be 8% when revised.

The confidence decreases as we enter into component level checks:

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While fuel inflation remains high, the fact that food inflation is coming down is suspect (especially after it was revised up nearly 1% to over 11% in August). Manufactured goods inflation seems to be stable, however consumer prices are more indicative of real inflation and that is nearly 10%.

  • fubar says:

    Looking at the first chart, inflation graph, it seems so similar to Nifty graph with a few months lag. Nifty dipped to 2500 and touched the peak of 6300 again and then dropped to 4500. As some people opine, inflation and growth go hand in hand. So if we wish for lower inflation, may be we should be prepared for low growth as well.