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241 ArticlesInflation

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Mehengai (Inflation) is Back: WPI Up 5.7% in March 2014

The Wholesale Price Index (WPI) for March 2014 shows an inflation of 5.7%, a sudden jump from February’s (now revised) 4.68%. You will notice that the blue ...

CPI for Jan 2014 at a 3 Year Low of 8.1%

Consumer Price Inflation for Feb 2013 is now at +8.1%. This is the lowest number since December 2011. Both Urban and Rural inflation saw dips, and both are ...

Food Inflation: The Government is Not Just Paying More, It is Buying More

In my last post, I mentioned how, according to RBI’s Rajan, NREGA and MSP have driven up prices of food. There’s another thing: we have been buying more ...

How Do You Calculate “Contribution” of any item to Inflation?

Technical note: How do you see the contribution of any individual element to inflation? Assume we have two items, A and B, which are priced at Rs. 100 each, ...

Why Food Inflation Haunts Us, And What We Can Do To Fix It

RBI’s Raghuram Rajan has described why food inflation continues to haunt our inflation expectations over the last few years. Here’s what he says, distilled ...

Why is Controlling Inflation More Important Than Short-Term Growth Worries? Rajan Answers.

This is going to be a long essay. RBI Governor Raghuram Rajan has a brilliant explanation of why Inflation is more important to worry about than short-term ...

WPI Inflation for Jan 2014 at 5.05%, Lowest in Seven Months

Wholesale Price Inflation in India for Jan 2014 came in at a low 5.05%, making everyone wonder what they are smoking. (Beedi’s perhaps, which has seen ...

CPI Inflation in Charts: Jan 2014 at 8.79%, Lowest in 25 months

CPI Inflation has eased to the lowest rate since Jan 2012, at 8.79%. The trend is definitely down and nearly all of it is due to the huge drop in food prices. ...

Rajan Tilts Towards Curbing Inflation First

Raghuram Rajan seems to have taken the side of inflation in the controlling inflation versus slowing growth debate. In a speech to the Research and Analysis ...

Chart: Inflation Contributions and the Lack of Participation by Manufactured Goods

From the Urijit Committee Report an interesting chart came about – what contributed to WPI inflation over the years. In the 80s, it was manufactured ...