Indian Inflation at 11.05% a 13yr high

The figures are out

Fuelled by increase in petroleum product prices, the wholesale price index (WPI)-based inflation rate soared to 11.05 per cent for the week ended 7 June as compared to 8.75 per cent in the previous week. Inflation rate stood at 4.28 per cent for the corresponding week in the previous year. Read BS

That is the highest in 13 years , God save the Pensioners, and the lower middle class and of course the Aam Admi, and WOAH! what a shocker to the system, one that expected it to be a bit above 10% – this could just give the retailer the incentive to inch up prices.

And as this high a figure (even after going through the govt knife) was unexpected the markets , they are a tanking! BSE down a full 500 points today ?

(image rediff money)

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8 thoughts on “Indian Inflation at 11.05% a 13yr high

  1. Interview Request

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    I hope you are fine and carrying on the great work you have been doing for the Internet surfers. I am Ghazala Khan from The Pakistani Spectator (TPS), We at TPS throw a candid look on everything happening in and for Pakistan in the world. We are trying to contribute our humble share in the webosphere. Our aim is to foster peace, progress and harmony with passion.

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  2. Thanks Madhu
    But this looks like a us solution

    Gold Yes im considering gold etfs , infact i just took a look at them , but to invest in gold in an upswing attempting to break 1000$/oz is a bit scary – trading it is ok, fine infact

    utility equities – no culture here – everything is psu and controlled by the govt -infact govt diktats even effect profits of pvt cos ….

  3. Prax,
    I was talking of trading in gold like you guessed. Even if traditional buying, if inflation has shot up 6% in the last year , gold has shot up 35% ; so the appreciation was way ahead of inflation at least last year. Looking at your links to the right, I’m sure you knew it already :-)..

    Utilities was a brain fart from an US investment bank serf ! Sorry . On PSUs and dikats pulling good companies down — totally agree. The 3 big Indian oil cos and India’s oil policy is a prime recent example..

    Back to just India, how’s the real estate market ? If you know people who can evaluate the potential, the returns are staggerring : 200-500% in the last 3-5 years. There is a cloud over the future going fwd, but there’s still great potential if you play the right markets — Bangalore for one..

  4. Doc
    the govt is not short selling the mkts
    it is short selling its good tax paying, working class citizens for the people who dont want to pay it …
    how can the communists and dmks of this world afford to give rice at 2 and 3 rs a kg , by not making the taxpayer suffer ? yes ur true however the markets get sold into – and that includes the rich govt officials and office bearers who protect havala dealers like that pune horse stud farm owners so that their pn investment moneys can be maintained.

  5. Madhu, u have a nice site there…
    on the property mkts , i expect a correction of 15 to 20% in premium properties, especially in tier two and 3 cities were prices have doubled and tripled , because of market corrections and expected elections and price fixing reaching unsustainable levels, something like 25% to 40 % for the mumbai city flats both premium and non premium ones, more in another post, till then read
    https://techntrek.wordpress.com/2008/02/15/are-indian-property-markets-in-a-bubble/

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