In more depressing news, India’s Consumer Price Index (CPI) is still in double digit inflation mode, with Jun 2012 going up to 10.02%.
The graph has sloped downwards, and past data have not been revised much, but then this is MOSPI and they could revise everything in a few months, without any explanation. Still, the problem is that CPI Inflation is in double digits.
Let’s look closely at the components, both year on year and month on month:
The big drop has been housing which still continues to grow in double digits, as does Food, Fuel, Clothing and "Others".
From an urban-rural perspective some relief comes into the urban index but the rural index shows signs of going upwards.
I doubt there is a rate cut coming soon. The fear of stagflation is now very real.
