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Costlier food shoots inflation figure for March
Apr 16, 2014

India's high inflation problem simply doesn't seem to end. As per an article in Economic Times, both wholesale price index (WPI) and consumer price index (CPI) increased more than expected in March 2014. As you can see in today's chart of the day, both the inflation indicators showed signs of abating in recent months. But the data for March has proved to be a wet blanket. What was the reason for the increase in the inflation level? The answer is increasing food prices. While the wholesale food inflation rose up to 9.9% in March, retail food inflation increased to 9.1%. Unseasonal rains in several parts of the country have disrupted food production. Moreover, the rising threat of El Nino on monsoon rainfall this year further increases inflation worries. Given these facts, the chances of a rate cut, seem to be dim, at least in the short to medium term.

Data Source: Economic Times

This Chart Of The Day was published in The 5 Minute WrapUp - Things you should know before taking cue from FII activity!

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