WPI inflation continued on a downward trajectory Says Mohit Ralhan, TIW Capital
Below Perspective on WPI inflation data for January By Mohit Ralhan - Chief Executive Officer, TIW Capital
“WPI inflation continued on a downward trajectory. It came in at -0.92% YoY, the lowest since July 2020. Fall came mainly on account of 2.42% YoY deflation in manufactured products. Sequentially, the wholesale price index remained unchanged as an increase in prices of primary articles was more than offset by a 2.68% decline in fuel and power prices. Prices had stayed the same in March as well. A decline in WPI inflation indicates that producers are facing lower input costs. This should bode well for consumer inflation, as some benefits get passed along to the end consumers. A lower reading on both CPI and PPI will support RBI’s stance to keep rates on hold.”
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