WPI Inflation for Apr 2014 at 5.2%, Lesser than 5.7% in March

2 comments Written on May 15th, 2014 by
Categories: Inflation

Wholesale Price Inflation seems to have moderated, compared to the increase in inflation in Consumer Prices, in April 2014. WPI shows 5.2% versus 5.7% last month.

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And then, the components show food is getting better, as is fuel:

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(The price increase for diesel will only affect us in May)

Revisions are back. After a few months of no big revisions, the inflation numbers for Feb 2014 were revised up from 4.68% to 5.03%.

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WPI is less important than CPI for interest rate decisions by the RBI. So we’ll just post the note and not try to believe there is a big impact.

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http://www.capitalmind.in
The man behind Capital Mind. Deepak is a co-founder at MarketVision, a financial knowledge company. Deepak also provides data research and consulting services, and now lives in Bangalore. Connect with him at deepakshenoy@capitalmind.in.

2 comments “WPI Inflation for Apr 2014 at 5.2%, Lesser than 5.7% in March”

Hi Deepak,

You have repeated the first chart twice. Please change the second chart to the index of components. Btw can you please do the first chart for CPI posts too? Thats a fairly intuitive graph which can be used to predict future inflation.

For example, WPI is fairly stable at around 180 for 7-8 months now. If it retains the stability for a few more months, we may very well see sub 4% levels fairly soon as the base (last year) rapidly ascends from 170 levels from June onwards. If the index is within 185 or 186 by September, the WPI will fall to 3%.

Since RBI has now shifted to CPI, I am curious what the index looks now and 1 year back.

Great idea. I’ll post one up immediately.