Primary Articles (Food mostly) has shown an inflation of 18.31% with the new index going up substantially last week to cross 180.
There is a lag between inflation appearing in food to manufactured products (which is about 65% of total WPI); food price increases will trigger higher wages but only after a while when people realize they can’t live with current wages. Only then does it reflect in manufactured product prices. We have had high inflation for around 10 months now.
Posts on Inflation:
- Sep 24, 2010: Primary Articles Inflation at 16.8%
- Sep 18, 2010: New WPI Shows Much Higher Inflation: 16.22%
- Sep 14, 2010: Monthly Inflation for Aug 2010 at 8.5%
- Sep 9, 2010: Food Inflation 15.4%, Revisions Still Scary!
- Aug 27, 2010: Food Inflation at 14.75%, Scary Revisions of 2%+
- Aug 16, 2010: July Monthly WPI at 262.5, Inflation at 9.97%
- Aug 3, 2010: Deflation is Really Bad: Or, What Is Krugman On?
- (More on Inflation)
