After averaging g g at 9.6% in FY11, Wholesale Price Index (WPI) inflation till now remains sticky above 9%.... Nov WPI headline inflation at 9.11%
• WPI inflation for November moderated to 9.11% yoy from 9.73% in October driven down by Primary, particularly Food prices. But it came a tad higher than consensus expectation of 8.9% yoy as manufactured products inflation remained sticky. • Inflation remained in line with our expectation. It is the 12th month that inflation has remained above 9% in spite of 13 rate hikes by RBI. • November inflation was driven by Manufactured products. • Sequential rise in manufactured products and core inflation accelerated in November Depreciating rupee did not help. • Food prices are not expected to moderate much even after a good monsoon due d t structural to t t l reasons. But inflation has definitely peaked.
Source : CMIE, RMF Research
macro economic environment