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Economy

WPI Inflation for Nov 2012 Falls to 7.24%

Inflation based on the Wholesale Price Index (WPI) fell to a low 7.24% in November. However, remember that these are preliminary figures and subject to revisions later.

Monthly WPI and Inflation

If you look at the past data, nearly all inflation numbers that were reported as low first have been revised upwards recently.

Inflation Revisions

Note that even the September headline number, first announced at a 10 month high of 7.81%, has been further revised to 8.07%. And none of the numbers that were first announced under 7% initially (four months this year) have retained that status after revisions.

Inflation Components

Component wise: The shady thing seems to be manufactured goods, which is nearly 65% of the index. I don’t think this is accurate and we’ll only know after the revisions.

RBI has a intermediate rate check meeting on Tue. I doubt they’ll raise rates. But then, stranger things have happened.

  • mangoman says:

    uddenly manmohan Singh woke up and said inflation is at unacceptable level. I trully amazed at this man’s character. Is he really that intelligent as we think?
    This has been going on in the country for past few years and it took many years for him to realise this thing. What is the answer he has for the savers who are f***ed by the governement policy of rewarding real estate brokers at the cost of Aam Aadmi?
    Is he has any plans to bring the real returns for the common man who puts deposit in banks?
    The reason for his sudden realization is this..
    ” Now we have reached a situation where the inflation goes up automatically by 10+ percentage whereas the salary/wage hike is not happening in the same pace. Most of the money of Indian Inc is stuck in real estate as all the companies think instead of doing their core business investing in real estate would be a good bet. Now that causes strains in the system and Rupee value nosedives. In spite of record FII share investments in this year Rupee has reached 55 levels. The share of P-Notes also at record levels. Now this is scary situation for the people who know basic economics”
    “Import bill is increasing hugely due to gold imports as people lost faith in this bunch of jokers who are mismanaging the country’s economy. India has withered some financial sunami’s only because our high rate of savings. Now since that is not there they are getting jerky”
    ” Cutting half percentage or even one percentage of interest rates will not revive growth of economy or the consumption boom as these jokers are expecting”

  • Prabee says:

    Is this a hypothetical post for 2013?
    Or was i sleeping for one year?
    When did inflation for November 2013 came out?

  • Given the revised inflation numbers over the last year or so, do you see this as the new norm and if so, should we use a number like 8.5% to factor in inflation for future finance goals like children’s education, retirement corpus etc.?

  • statspotting says:

    Can you do a post on what the different types of inflation numbers are, and what is the catch in each of these? (both from a what they communicate perspective, and what investors look for perspective) While google can help with the first part, the second part is difficult.

  • Akash Parmar says:

    This fall reminds me of the sudden dip in unemployment nos. in US before their election. India’s inflation nos. have dropped just around the time FM has hinted RBI(read Subbarao) to cut rates.
    I think “where there is (political) will, there is a way”