Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
Charts & Analysis

WPI Inflation for Apr 2014 at 5.2%, Lesser than 5.7% in March

Wholesale Price Inflation seems to have moderated, compared to the increase in inflation in Consumer Prices, in April 2014. WPI shows 5.2% versus 5.7% last month.


And then, the components show food is getting better, as is fuel:


(The price increase for diesel will only affect us in May)

Revisions are back. After a few months of no big revisions, the inflation numbers for Feb 2014 were revised up from 4.68% to 5.03%.


WPI is less important than CPI for interest rate decisions by the RBI. So we’ll just post the note and not try to believe there is a big impact.

  • Shyam says:

    Hi Deepak,
    You have repeated the first chart twice. Please change the second chart to the index of components. Btw can you please do the first chart for CPI posts too? Thats a fairly intuitive graph which can be used to predict future inflation.
    For example, WPI is fairly stable at around 180 for 7-8 months now. If it retains the stability for a few more months, we may very well see sub 4% levels fairly soon as the base (last year) rapidly ascends from 170 levels from June onwards. If the index is within 185 or 186 by September, the WPI will fall to 3%.
    Since RBI has now shifted to CPI, I am curious what the index looks now and 1 year back.