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May WPI Inflation at 4.7% Versus 4.89% in April
May WPI Inflation at 4.7% Versus 4.89% in April
INFLATION: IIP NUMBERS: May: 4.70% (-) April: 2.0% (-) April: 4.86 % (-) March: 3.40% (+) April: 7.74% (-) March: 5.96% (-) Feb: 0.60% (-) March: 7.95 %(+) Feb. 6.84% (+) Jan. 2.40% (+) Feb. 7.86%(-) Jan. 7.31% (=) Dec. 0.60% (-) Jan. 7.91%(-) Dec. 7.31% Nov. -0.10% Dec. 8.05%
INFLATION DOWN TO OCTOBER 2009 LEVELS Wholesale price index based-inflation eased to 4.70 per cent, the lowest since October 2009, and the rupee strengthened by 40 paise to 57.60 to a dollar. May WPI inflation at 4.7% versus 4.89% in April
WPI-based inflation fell to 4.70% (provisional) for the month of May, 2013 (over May, 2012) as compared to 4.89% (provisional) for the previous month and 7.55% during the corresponding month of the previous year. The index for primary articles rose by 0.6 percent from the previous month. The index for fuel and power declined by 1.3 percent from the previous month. The index for manufacturing group rose by 0.3 percent from the previous Month. The index for Food Products group rose by 0.36 percent from the previous month.
IMPACT ON MARKETS AFTER th INFLATION DATA RELEASE (as on 14 June, 2013) Benchmark G-Sec Yield (%)
Equity (Sensex)
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Our View
The Reserve Bank of India (RBI) primarily looks at WPI inflation while deciding on monetary policy. A fall in WPI inflation thus gives the central bank more space to cut repo rate. However, economists see the sharp slide in the rupee of late pushing inflation up and complicating the chances of further monetary easing. RR Information Research 47, M.M. Road, Rani Jhansi Marg Jhandewalan Extension New Delhi-110055 Phone No-01123636362 Visit: - http://www.rrfinance.com Online Share Trading - Mutual Fund