Primary Articles Inflation has fallen to 7.74% for the week ended 19 Nov 2011. This is the lowest since July 2009.
There is both a high base effect and a lowering of prices that’s working in favour of bringing down inflation.
But of course:
- Coal prices – Coking, non-Coking etc. – have not been updated since Feb 11. Prices have gone up substantially since; this is not part of primary articles,though.
- According to the index, tomato prices are up 71% in the last year. I don’t think they are as popular as onions, otherwise some TV channel would have thrown a fit by now.
- It’s winter, and with a great monsoon, expect prices to come down substantially. For the next three months, there shouldn’t be more than 7% headline inflation in the WPI. We’ll probably resume with inflation in Feb next year.
