Inflation based on the Wholesale Price Index (WPI) fell to a low 7.24% in November. However, remember that these are preliminary figures and subject to revisions later.
If you look at the past data, nearly all inflation numbers that were reported as low first have been revised upwards recently.
Note that even the September headline number, first announced at a 10 month high of 7.81%, has been further revised to 8.07%. And none of the numbers that were first announced under 7% initially (four months this year) have retained that status after revisions.
Component wise: The shady thing seems to be manufactured goods, which is nearly 65% of the index. I don’t think this is accurate and we’ll only know after the revisions.
RBI has a intermediate rate check meeting on Tue. I doubt they’ll raise rates. But then, stranger things have happened.
