Wholesale Price Index (WPI) based inflation for August 2013 was at +6.1%, an increase over the previous month’s 5.79%, the highest since Feb 2013.
This is now a 1.5% increase in inflation over the May number of 4.58%.
WPI Inflation for June 2013, which was first announced at 4.86%, is now up to 5.16%. This is a large revision, and the first upward one since February.
Primary articles (mainly food) is now over 11.7% over last year, a massive increase. Fuel inflation remains at 11.34%. Both must be up big because of rupee depreciation, but also because these prices fluctuate often due to supply etc.
Manufactured goods is a story that is difficult to believe, because everything else shows prices going only up. A 1.90% print sounds like they have decided not to update prices at all.
The red line is what you and I are seeing.
The blue line is what the government and RBI *think* we are seeing.
Which apparently, is not eye-to-eye.
We are in HORRIBLE shape as an economy. We really need to fix inflation and bring it down to 3% or lesser, and that needs to be our only priority, growth be damned. Even if we induce a recession by doing so. My question for Friday: Will Rajan Do A Volcker?