For Quick Alerts
For Daily Alerts

Feb WPI inflation at 6.84%; increases challenge for RBI

 Feb WPI inflation at 6.84%; increases challenge for RBI
The Wholesale Price Index inflation for the month of Feb 2013 has come in at 6.84 per cent, higher then consensus estimates, increasing the challenge for the RBI when it meets on March 19 to decide on interest rate cuts.

Non foods manufactured inflation has fallen to 3.8 per cent from 4.1 per cent month on month. Feb manufactured inflation has come in at 4.51 per cent, vs 4.81 per cent month on month.

The index for Beverages, Tobacco & Tobacco Products group rose by 1.0 percent to 178.8 (Provisional) from 177.0 (Provisional) for the previous month due to higher prices of dried tobacco (11%) and rectified spirit, soft drinks & carbonated water and imfl - blended (1% each).

The index for Textiles group declined by 0.2 percent to 133.1 (Provisional) from 133.4 (Provisional) for the previous month due to lower prices of woollen textiles (2 per cent) and man made fabric (1%). However, the prices of cotton yarn, jute sacking bag, gunny and hessian cloth, jute yarn, man made fibre and tyre cord fabric (1 per cent each) moved up.

The index for Paper & Paper Products group rose by 0.4 percent to 138.3 (Provisional) from 137.8 (Provisional) for the previous month due to higher prices of paper rolls, cream laid woven paper, paper cartons / boxes, paper for printing / poster, maplitho paper and laminated paper (1 per cent per cent each). However, the prices of paper pulp (8%) declined.

Today's inflation data makes the probability of interest cuts even dimmer, given that the consumer price index level for February was also at an uncomfortable level.

However, analysts are betting on the RBI to cut rates by 0.25 per cent, despite the high inflation given that growth in the economy has deteriorated. The Reserve Bank of India last cut policy rates in January by 25 basis points.

Read more about: wpi inflation
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more