“Although it is encouraging to note the dip in WPI, a more cautious interpretation is necessary before adjudging it a trend. There seems to be a rising departure between CPI levels reported last week and WPI, with retail food prices remaining sticky while wholesale prices cooling. Also, a decline in wholesale inflation of manufactured goods may be a sign of dwindling demand as IIP data on manufacturing sector also registered a dip in July 2014. It is likely that the market would not react much to today’s WPI data, given the ambiguity in trend.”
By: Debopam Chaudhuri, Chief Economist, ZyFin Research
Also Read: August WPI #inflation declines to 3.74% as compared to 5.19% in July
By: Debopam Chaudhuri, Chief Economist, ZyFin Research
Also Read: August WPI #inflation declines to 3.74% as compared to 5.19% in July
