CPI Inflation at all time high

The retail price (CPI) index-based inflation jumped to an all-time high of 11.24%, driven primarily by high vegetable prices. The inflation stood at 10.09% in October, entering double digits for the first time  in six months. The biggest culprit was vegetables where the inflation zoomed to 61.60% in November against 45.67% in October. Overall, food and beverages  inflation rose to 14.72% from 12.56%  over  the period.

High retail as well as wholesale inflation could spoil the rally going on in equities as further rise in interest rate is inevitable. Economists think  that RBI would  tighten monetary policy further at  its review  next week.

Indian WPI Inflation for Feb - 2012 at 6.95 Percent

Wholesale Price Index (WPI) went up by 6.95% in February against 6.55% in January because of sharp increase in food prices, especially vegetables and protein-based items.

WPI Inflation in February 2011 was at 9.54%.

Food inflation was 6.07% in February against - 0.52% in January. Food articles have 14.3% share in the WPI basket.

Prices of manufactured items, which has around 65% weight in the WPI index, went up by 5.75% YoY in February, as against 6.49% in the previous month.

Food Inflation in India back to single digit

Food inflation is down to 9.55% for the week ended August 27 after breaching 10% in the previous week.

Prices of pulses fell by 1.56% year-on-year, while wheat became cheaper by 1.04% during the week ended August 27.

Food prices stubbornly high, RBI might pause on 16 Sep

The food price index rose to six month high level at 10.05% and the fuel price index climbed 12.55% in the year to Aug. 20. In the previous week, annual food and fuel inflation stood at 9.80% and 13.13% respectively.

The primary reason for such high food inflation numbers could be uneven rainfall in some parts of the country which created temporary shortfall in supply of food items. In west Bengal some of the vegetables were being sold at 400% higher prices than their average selling prices.