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Below is Statement on WPI data By Dr. Vikas Gupta, CEO & Chief Investment Strategist, OmniScience Capital

“WPI inflation was primarily driven higher by the fuel prices with the Fuel & Power Index growing at nearly 39%. There are two factors here, the crude oil prices as well as the exchange rates. The crude oil prices are currently reflecting the geo-political turmoil. The exchange rates are partly reflecting the geo-political turmoil but the primary drivers are the FII flows driven by the Fed rate increases and US economic data. The rest of the WPI is getting impacted due to the global supply chain issues. None of these factors seem like those which can entrench inflation for the next 3-4 years. It is likely that inflation should be sorted out within next few quarters to a year”

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