Food inflation, as measured by Wholesale Price Index, stood at 9.13 per cent in the previous week.
The industry department had planned to get 10,000 price quotations from producers in order to have a new-look WPI, which incorporates a better snapshot of the economy. Out of this, 8,000 products are manufactured items. However, it now emerges that the DIPP may get price quotations from only 6,400 industrial units and factories.
With the average WPI-based inflation at 7.5% and CPI-based one above 10%, a bit of aggression is required to beat inflation. Four experts give their views.
Food inflation inched up to 17.40 per cent for the week ended January 16 on account of high prices of potato and pulses. The wholesale price-based food inflation was 16.81 per cent in the previous week. Potato prices rose as much as 57.56 per cent over the last year, followed by prices of pulses which jumped by 46.87 per cent.
Bajaj Finserv was the top loser in the Sensex pack, shedding around 3 per cent, followed by Bajaj Auto, Bajaj Finance, L&T, Asian Paints, Dr Reddy's, ICICI Bank, HDFC Bank and RIL. NSE Nifty finished 101.45 points down at 14,929.50.
Richard Illey, chief economist, (Asia, ex-Japan) at BNP Paribas, talks to Business Standard on inflation and related issues ahead of the Reserve Bank's annual review of monetary policy.
Industrial production was seen growing 1.8 per cent from a year earlier in July, slower than June's 3.4 per cent increase, according to the median consensus in a poll of 31 economists.
An appropriate policy response always warrants a correct diagnosis of the problem. That is why the recent trend in inflation and its causes, and the inflation outlook take on exceptional importance ahead of the RBI's policy review on January 25.
Inflation shot up to 8.43 per cent in December, from 7.48 per cent in the previous month, as prices of certain food and non-food items continued to show an upward trend.
Inflation declined to 3.03 per cent for the week ended February 21 mainly on account of lower prices of food items such as fruits and vegetables and tea, and some manufactured items.
The services sector contributes the highest of around 54 per cent to the country's gross domestic product. At present, the WPI, which is released every week, contains prices of primary articles, fuel and manufactured products. Data from banking and transport services would be the first sectors to be covered on an experimental basis. The plan is to initially build a separate services index, which would be integrated into the WPI later.
The wholesale price-based food inflation rose for the fourth consecutive week. In the previous week it stood at 17.94 per cent.
The wholesale price index, coming below four per cent, may prompt the Reserve Bank of India to cut key policy rates. An indication was made by the RBI Governor D Subbarao in Tokyo on Wednesday. During the week, prices of manufactured items such as sugar, imported edible oil and textile items such as cotton yarn got cheaper.
Interestingly, it is the long products that have witnessed the steepest price increase (between 50 per cent and 62 per cent), clearly reflecting the booming demand from construction activities. However, the flat products, by comparison, have seen a price increase of 17-24 per cent, almost half compared with the long products. Driven by demand, the share of the long products in the total steel production has been steadily increasing.
On an annual basis, prices of food articles went up by 8.19 per cent in July, which is lower than the 8.38 per cent inflation recorded in June.
Food inflation softened to 18.22 per cent as of the week ended December 26, although potato and pulses continued to cost high. The wholesale price based inflation was 19.83 per cent in the previous week.
The government's response to the price hike needs to be less panicky. The imposition of export duties, reduction in import duties, increasing the minimum export prices, restricting exports and raising the cash reserve ratio for banks have been among the measures that have resulted from this concern over inflation.
RBI targets to keep inflation at 4 per cent, (+/- 2 per cent), and its rise beyond this comfort zone will put pressure on the central bank to hike rates.
Inflation measured by the Wholesale Price Index had declined to 6.62 per cent in January. It was 7.18 per cent in December and 7.24 per cent in November.
The common man's main grouse is high inflation numbers. But there are other anomalies as well that need to be addressed.
Headline inflation rose to 9.44 per cent in June on the back of rising prices of fuel and manufactured products, which may prompt the Reserve Bank to raise key rates again in its quarterly policy review later this month.
As per data released by the government on Thursday, pulses became over 9 per cent cheaper year-on-year during the period under review.
The latest numbers are the highest level of food inflation since the week ended March 26 when it had stood at 9.18 per cent.
Inflation declines to 3.65 per cent for the week ended December 8, compared to 3.75 per cent in the previous week, mainly due to fall in prices of food articles and some manufactured items. The wholesale price index-based inflation stood at 5.63 per cent in the corresponding week a year ago.
This is the lowest rate of price rise in food items in the last 18 months, when separate data for food inflation first started coming in.
The consumer price index has been in double digits for much of the past year, and was 9.8 per cent in September.
The Street's optimism on India's largest listed automotive maker by market capitalisation is not misplaced, given the robust wholesale performance in recent months and the strong 2023-24 (FY24) October-December (Q3) results.
Inflation has moved into positive territory for the first time since May 30. The inflation has gone up to 0.12 per cent for the week ended September 5.
The rise in overall inflation for the second month in a row may prompt the central bank to go for another round of policy rate hikes in its policy review meeting, scheduled for May 3.
The wholesale price index-based inflation remained negative for the 12th consecutive week primarily on high base. Inflation turned negative for the first time in the week ending June 6.
Stories are legion about the Karatmeter's use at that time. Hundreds of people standing in queue for testing, customers breaking down after discovering the actual purity of their jewellery and then becoming irate about the jeweller who had gypped them, the local jewellery industry leaning heavily on the Tanishq franchisees to desist from using it, some jewellers even threatening violent action.
The wholesale price index during the corresponding week a year ago was as high as 12.91 per cent, while in the previous week, it stood at (-) 1.58 per cent. During the week, prices of barley, jowar and gram rose by two per cent and condiments and spices, arhar and fruits and vegetables by one per cent each.
Overall inflation rose marginally to 8.31 per cent in February, 2011, from 8.23 per cent in the previous month.
With the start of rabi crop arrivals, the prices of agri commodities have declined in the past two months, raising hope that food prices will moderate in the weeks ahead.
Inflation increased to 4.13 per cent for the week ended June 23 compared to 4.03 per cent in the previous week mainly due to rising prices of food articles and manufactured products.
While the wholesale price index stood at 0.48 per cent in the previous week, the rate of price rise was 9.32 per cent during the corresponding week a year ago. During the week, the prices of eggs went up by 11 per cent, mutton 3 per cent, and fruit and vegetables and spices 2 per cent each.
In the previous week inflation was (-) 1.54 per cent. Wholesale price index-based inflation was 12.53 per cent during the corresponding week a year ago.
Wholesale price-based inflation stood at 8.90 per cent in the corresponding week a year ago. During the week, the prices of the maize, arhar, spices and fruit went up while ragi and barley declined.
During the week, prices of steel, condiments and spices, marine fish and fruits and vegetables escalated. Among the manufactured items, prices of aluminium, locomotives and railway wagons increased while the prices of iron and steel declined.
Inflation declined to 5.06 per cent for the week ended May 19 as compared to 5.27 per cent in the previous week due to lower prices of food articles including moong and wheat, and manufactured products.
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