India-First-Global-Insights-Analysis -Sharing-PlatformIndia-First-Global-Insights-Analysis -Sharing-Platform

November WPI inflation at 9.11%

, December 14, 2011, 0 Comments

Mumbai, December 14, 2011 : The wholesale price index (WPI) for the month of November rose 9.11% from a year earlier, slowing from a 9.73% rise in October. Inflation internals reveals that food inflation stood at 8.54% in November from more than 11% in October, while fuel inflation increased to 15.48% from 14.79% and manufacturing inflation increased marginally, to 7.7% from 7.66%. Main improvement is because of food.

Taking cues from this, bond yields edged up after the higher-than-expected inflation figure. The 10-year yield rose 4 basis points to 8.46%, while stocks were down 0.4%. In an attempt to curb inflation  central bank has raised interest rates 13 times since March 2010. Industrial Data published on monday showed negative growth of -5% highlighting slowing economy and tight liquidity situation.

It is yet to be seen that what RBI does in its meeting to be held on December 16, 2011. Though a section of market believe a rate cut will note be possible up to March 2012, Central bank may lower CRR requirement to deal with liquidity situation.


About author
Market Bureau comprises of team of highly skilled Professionals who have expertise in Financial & Business Reporting. It also includes freelancers ,consultants and authors from our content partners who brings in valued and critical insights to this section with their rich experience. ...more