9/17/2014 August WPI inflation shrinks to 5-year low of 3.74% - The Economic Times

http://economictimes.indiatimes.com/news/economy/indicators/august-wpi-inflation-shrinks-to-5-year-low-of-3-74/articleshow/42517776.cms 1/7

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Wholesale Price Index (WPI) for the month of August shrunk toa five-year low of 3.74% versus 5.19% in July.

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August WPI inflation shrinks to 5-yearlow of 3.74%

READ MORE ON » Wholesale price index | reserve bank of india | manufactured products | Inflation | consumer priceindex

NEW DELHI: Wholesale Price Index (WPI)for the month of August shrunk to a five-year low of 3.74% versus 5.19% in July.This is much below an ET Now poll of4.4%.

The August WPI inflation is the lowestsince October 2009 when it stood at 1.8 percent. The WPI for June has been revised to5.6% versus 5.43% earlier.

The primary articles inflation dipped to3.89% in August versus 6.78% in July. Themanufactured products inflation came in at3.45% versus 3.67% in July. The food priceindex dipped substantially to 5.15% versus8.43% in July. The fuel & power inflationwas reported at 4.54% versus 7.40% inJuly.

Vegetable prices contracted 4.88 per cent,the third continuous month of decline.Maintaining a downward trend, the onionprices contracted by 44.7 per cent duringthe month under review.

However, potato prices were on the rise asinflation in the kitchen essential jumped to61.61 per cent from 46.41 per cent in July.

Inflation in the fruits basket eased to 20.31per cent in August.

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August WPI inflation shrinks to 5-year low of 3.74%

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9/17/2014 August WPI inflation shrinks to 5-year low of 3.74% - The Economic Times

http://economictimes.indiatimes.com/news/economy/indicators/august-wpi-inflation-shrinks-to-5-year-low-of-3-74/articleshow/42517776.cms 2/7

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While prices of protein rich items like egg,meat and fish contracted during the month,inflation in milk and pulses inched up to12.18 per cent and 7.81 per cent,respectively, as compared to July.

While the news was greeted with cheer, most analysts are of the opinion that the ReserveBank of India's (RBI) tough stand on inflation will continue, since it is the Consumer PriceIndex (CPI) that the central bank tracks.

CPI inflation slowed to 7.8 per cent in August from nearly 8 per cent in the previousmonth. Consumer food inflation went up 9.42 per cent from 9.36 per cent in the previousmonth but with the monsoon improving dramatically in September, a further spike isunlikely.

Declining crude and vegetables prices will provide further relief with a cut in diesel priceson the cards. However, most experts still expect the RBI to hold interest rates when itreviews monetary policy on September 30. Retail inflation is still close to RBI's March2015 target of 8 per cent.

"We do not expect RBI to change its stance in the upcoming credit policy announcementlater this month and thereby the repo rate is likely to remain unchanged," Care Ratingssaid in a statement last week. The possibility of a rise in interest rates in the US couldalso keep pressure on the central bank to maintain status quo.

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9/17/2014 August WPI inflation shrinks to 5-year low of 3.74% - The Economic Times

http://economictimes.indiatimes.com/news/economy/indicators/august-wpi-inflation-shrinks-to-5-year-low-of-3-74/articleshow/42517776.cms 3/7

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Why is interest rate thre times the inflation rate of three per cent per annum googlegroup30 org the cartel for usury cronies bankers worldwide who are its members find outand educate yourself it's like OPEC cartel for fixing oil prices at thre times wot they costbasis price will be

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The opposition will be the most disappointed herd Agree (0)Disagree (0)Recommend (0)Offensive

This was expected after the NDA Govt took over. i am sure we will soon touch the lowestWPI ever.

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This is good. Investors were anxiously waiting to hear from quite some time. Agree (0)Disagree (0)Recommend (0)Offensive

SOUNDS GOOD AND HOPE THE DOWNWARD TREND CONTINUES AND THESUSTAINABILITY IS MAINTAINED.

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It is the new government effort. Agree (2)Disagree (0)

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9/17/2014 August WPI inflation shrinks to 5-year low of 3.74% - The Economic Times

http://economictimes.indiatimes.com/news/economy/indicators/august-wpi-inflation-shrinks-to-5-year-low-of-3-74/articleshow/42517776.cms 4/7

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Very good numbers Agree (1)Disagree (0)Recommend (0)Offensive

Although the WPI is low. But still the prices of most of the essential commodities are inhigh.

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still a long way to go for the RBI to start reducing interest rates. Agree (0)Disagree (0)Recommend (0)Offensive

If team Modi delivers well with populism it would become bulwark, a rock-solid fortressaround the NDA coalition. Writing on the wall for the smaller, regional parties i.e.SP,BSP,JDU,RJD… is clear…VANISH."

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If team Modi delivers well with populism it would become bulwark, a rock-solid fortressaround the NDA coalition. Writing on the wall for the smaller, regional parties i.e.SP,BSP,JDU,RJD… is clear…VANISH.

Agree (1)Disagree (0)Recommend (0)Offensive

Inflation in the fruits basket eased to 20.31 per cent in August. Agree (2)Disagree (0)Recommend (1)Offensive

but that is still high by any stretch of imagination. Agree (0)Disagree (0)Recommend (0)Offensive

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9/17/2014 August WPI inflation shrinks to 5-year low of 3.74% - The Economic Times

http://economictimes.indiatimes.com/news/economy/indicators/august-wpi-inflation-shrinks-to-5-year-low-of-3-74/articleshow/42517776.cms 5/7

I wonder whether this will persist for months to come but figures tells us about ache din. iwill not be surprised if Chidu comes & takes the credit.

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he will, because these WPI numbers easing are a result of efforts takensome 6 months back. the NDA govt efforts to rein in pricing will seeresults only by the next quarter.

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Situation and circumstances improving. New govt seems to be on right track. Agree (2)Disagree (0)Recommend (0)Offensive

"However, potato prices were on the rise as inflation in the kitchen essential jumped to61.61 per cent from 46.41 per cent in July" What does this mean ? What is kitchenessentials ? WPI is low, protein content are low, vegetables and fruits are low and evenonion prices are low ? Only what i get is potato.milk and pulses prises are rising. Pulses iget it. but potato is called kitchen essential ? From where i see, the changes aresignificant. WPI fell for the third month, which isn't a coincident. Looks like what govt. didseems to be working. Only problem that i see here is alot of this inflation is createdartificially with bad and crony market practises. Govt. can't sit idle even if inflation isbrought down because these people can increase the prices again by controlling supply.We need a special task force with a market regulator for this.

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Wholesale Price Index (WPI) for the month of August shrunk to a five-year low of 3.74%versus 5.19% in July. This is much below an ET Now poll of 4.4%. The August WPIinflation is the lowest since October 2009 when it stood at 1.8 per cent. The WPI for Junehas been revised to 5.6% versus 5.43% earlier.

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CPI RISE IS 7.8% WHEREAS WPI RISE IS 3.74% THAT MEANS MIDDLEMAN MADEMORE MONEY THAN PRODUCERS. THIS REFLECT BAD ON GOVERNORS. WHYFALL IN WPI NOT TRANSMITTED TO COMMON MAN IN TERMS OF CPI. GOVT MUSTPUNISH THE GUILTY. A GOOD GOVT MUST ENSURE THIS TRANSMISSION.

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Prime Minister Narendra Modi, elected in May amid anger over persistently high inflation,particularly food inflation, has made cooling prices a top priority for his administration.Hehas ordered a crackdown on hoarding, and set limits on the export of staples, such asonions and potatoes. But analysts say these measures, at best, can provide brief relief,and cannot fix a dilapidated supply system controlled by middlemen.India is the world'ssecond-biggest producer of fruit and vegetables after China, but it battles chronic

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9/17/2014 August WPI inflation shrinks to 5-year low of 3.74% - The Economic Times

http://economictimes.indiatimes.com/news/economy/indicators/august-wpi-inflation-shrinks-to-5-year-low-of-3-74/articleshow/42517776.cms 6/7

shortages as an estimated 18 percent of the crop goes to waste every year due toinadequate cold storage and refrigerated transport facilities.New Delhi estimates it needsto invest $9 billion in the cold supply chain by March 2016 to handle growing output of fruitand vegetables. That is more than 10 times the $822 million allocated in Modi's maidenbudget last month, and far more than the government can afford.

Appears good, hope prices on ground too will reflect? Agree (3)Disagree (0)Recommend (1)Offensive

WHAT A MOCKERY OF STATISTICS. Now a days these figures are misleading &confusing.

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WPI figures and its calculation itself is an aberration. Agree (0)Disagree (0)Recommend (0)Offensive

very good news................. Agree (1)Disagree (1)Recommend (0)Offensive

Seems like inflation is based on goods which no common man consumes. While commonpeople are reeling under high price, Govt claims inflation has come down. It can onlymean prices are rising at a slower pace although they remain skyhigh are are movinghigher. What a paradox!

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Happy that I voted right person to get economy on track..!!! Agree (12)Disagree (4)Recommend (5)Offensive

The RBI wants to reduce retail inflation to 6 percent by 2016. Thecentral bank left the repo interest rate steady at 8.0 percent last monthand is widely expected to do the same at its upcoming policy review toensure sustained disinflation next year.Retail inflation is the mainbarometer for policy decisions and unless that tapers off towards the

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9/17/2014 August WPI inflation shrinks to 5-year low of 3.74% - The Economic Times

http://economictimes.indiatimes.com/news/economy/indicators/august-wpi-inflation-shrinks-to-5-year-low-of-3-74/articleshow/42517776.cms 7/7

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January 2016 target at 6 percent, rate cuts are unlikely to be in thepicture. I maintain that the repo rate will be held unchanged for rest ofthe year to ensure recovery in growth does not disrupt thedisinflationary trend. Improved rainfall in recent weeks should help tomoderate food price pressures, lower global oil prices and thefavourable statistical base should help lower inflation, but there werecounter-forces to consider.

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WHAT A MOCKERY OF STATISTICS. ALL GOODS ARE COSTLY AND OUTSIDE THEREACH OF COMMON MAN AND INFLATION FALLEN. IT REQUIRES RELOOK.

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