Thursday, August 14, 2014

Marginal improvements in monthly Inflation numbers

The wholesale price index (WPI) in July eased to a five-month low of 5.19 per cent, helped mainly by a moderation in fuel costs, decline in prices of some food articles, vegetables and protein rich items.
In June, wholesale prices rose 5.43 percent year-on-year, their slowest pace in four months.
The Reserve Bank in its monetary policy review last week had cautioned that continued uncertainty over monsoon could stoke food inflation, but expressed the hope that government policies will improve supplies in the coming months. Retail inflation data for July, released earlier this week, showed a marginal inch up to 7.96 per cent.
Inflation in vegetables declined 1.27 per cent, and for onion it was (-)8.13 per cent on an annual basis in July, as per the WPI data released today.
However, potato prices shot up 46.41 per cent and fruits 31.71 per cent during the month. Rate of price rise in milk was at 10.46 per cent.