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Charts & Analysis

CPI Inflation for Aug 2013 at 9.52%, Food at 11%

Consumer Price Index (CPI) inflation for August 2013 comes in at 9.52% which is a ludicrously high number when you consider that WPI inflation is just 5.79%.

WPI versus CPI

CPI of course has components the WPI does not, like costs of housing, entertainment and other services. That is our life really, and the real cost of living, rather than just potatoes or onions.

Component wise, things remain horrible on the food front at 11% inflation.

CPI Components

Housing remains sticky at 10%+, and Transport costs are now up 8%.

The Rural-Urban divide continues; While rural inflation fell below 9%, urban inflation remained steady around 11.5%.

CPI Urban and Rural

A good monsoon should help rural inflation even more. But nothing seems to be able to bring down urban inflation, and with the dollar at 60+, that will only go up.

We are likely to ignore these numbers, as WPI inflation will come on Monday. CPI is hardly used in India, but it should be, and that’s why I continue to type in these numbers every month. Hope you like them!

  • Paul says:

    Rural inflation will hit new highs(atleast in Kerala) – The villagers have stopped going to work at paddy fields and other agricultural lands – All want to join the NREGA and they believe that it is government job! Some people have misguided them to believe that once they work in NREGA for 3 consecutive years, they will get government pension for rest of their life! Total cultivated area is shrinking for lack of workers and workers are busy digging trenches on both sides of all village roads. They have even formed union for NREGA! As my local shopkeeper says people are now buying oats, axe deodorants, shampoo, lux and pears soap. He is one happy guy – I was startled on seeing his shop – it transformed from a rice-onion-oil shop to a mini super market!

  • Mohit Satyanand says:

    What is important from a market-watcher’s point of view is that the new RBI Governor has clearly indicated he will be focusing on CPI.

  • Anshuk Jain says:

    Please continue typing these numbers. Much appreciated!!!