Inflation Graph: Keeping above zero, but how long?

1 Comment » Written on June 1st, 2009 by
Categories: Inflation
Inflation's holding (or "being held") just above the zero line, over the last few weeks. So much for my prediction of negative rates! Interesting to see how the graph looks.

The "bulge" was from rising commodity prices last year, and while they're not quite that much this year, the wholesale price index has gone up neatly (some of it is food prices, and crude has also shot to $60+, but I suspect we will follow prices up all that much).

The next few weeks should reveal more. Will we see a drop? Will the lack of demand show up in this or other indices? (Unfortunately none of them have real estate prices or rentals, otherwise we'd have seen deflation already)

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About the Author: Deepak Shenoy
http://www.capitalmind.in
The man behind Capital Mind. Deepak has co-founded MarketVision, a financial knowledge startup. He has traded the Indian Markets for nearly a decade. Deepak lives in Gurgaon and fears using long words.

One Response to “Inflation Graph: Keeping above zero, but how long?”

>Thanks for the posts. :)
You have done some analysis on the WPI some time back.

What you have stated in the first sentence “Inflation’s holding (or “being held”) just above the zero line”

Pardon my naivity of the topic, but as a consumer I should see WPI following the inflation, i.e. coming down.which is not the case here. So if all the data compiled is accurate then there seems to be basic flaws (you have pointed those someitme back) in the WPI.
way to go here.

on the other note RBI seems to tightening the leashes on the other govt psu’s by saying not to offer guarantee to corporate bonds anymore.

2019 bond yield at 6.68% right now. way to go there also.(hopefully down.)

btw you are lucky to have a gem mechanic. service at your door. very rare community to find these days.
Good luck.


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