October Monthly Inflation – the more comprehensive Inflation report – comes in at 9.73%, which seems to be quite high as a headline number.
Component wise, Fuel is up the most:
While Manufactured goods is the seriously large component (65% weight) it seems to have reduced a bit in the index. This might be the RBI measures working, or it may simply be a phase before the rise resumes.
Meanwhile the new 10 year yield went to 8.96%, while the earlier 10 year bonds were around 9.04%: there was no big move. The BankNifty Index opened up nearly 1.5% but ended in the red, down 0.4% at 9256.
