The Entrenched Inflation Numerical Down to 8.84%

Indian weekly Food Inflation Data for the week ended September 10, 2011 was out today. The inflation showed the numerical mop down to 8.75 % of about. This rise in Inflation is on the back of Last Years ' Inflation Explosion' of 16%+, and hence shows only numerical value than any applause   It was in last year when the Government of India's Advisor Mr Basu was supportive the inflation by Saying ' Sometimes it is Essential to Have some degree of Inflation and was hopeful of Inflation to come down soon' Mr. Ahuliwalia seconded it. R.B. I tugged the line with its ' Baby Steps' theory. Readers may well remember the ' Onion Explosion' , followed thereafter. It seems Mr Basu, who is from Foreign University not only is inexperienced to Indian Society, it seems ' Big Talking ' Economist, who did not recognise that, In India Inflation is hardly an answer to the economic progress of the country. Had Some Bold steps been initiated then, the India's sustaining power could have been saved. It seems, all Mr Basu wants to promote the Western + China model into India's economic structure and now with experimenting with changing the Indian distribution System of Farm Products, Namely F.D.I in Indian Retail. The Entrenchment of Inflation and India's Growth Story is not only a Number Crunching Exercise, but it is the on the ground growth of the working Indians. The experimented Budget and playing with Inflation has Put Indian growth Story to a Toss. The presumptions and Complacency along with total mis- management has put the Indian Rupee to the throes of 50 against Dollar. It seem that, the government has yet to awaken to the economic call of the current time. It is expecting sell of Indian Companies to the FII's and garner some hard cash. The Tax projections are Considering the Higher Growth rate and is not envisaging the ' Slow down ' With many sectors like Auto, Air lines, Housing debasing and as Inflation with high Interest rates tightening, unless Indian government cuts it's over bulging expenses or stokes the unaccounted money to source the Cash, the Dream soon may turn into a nightmare.... The Inflation date details are here to see the Number Crunching Exercise ....

Wholesale Price Indices for Primary Articles and Fuel & Power in India (Base: 2004-05 = 100) Review for the week ended 10th September, 2011 (19 Bhadrapada, 1933 Saka)

The WPI for the week ended 10th September, 2011 in respect of ‘Primary Articles’ and ‘Fuel & Power’ is given below: PRIMARY ARTICLES (Weight 20.12%)  The index for this major group declined by 0.1 percent to 201.9 (Provisional) from 202.0 (Provisional) for the previous week. The annual rate of inflation, calculated on point to point basis, stood at 12.17 percent (Provisional) for the week ended 10/09/2011 (over 11/09/2010) as compared to 13.04 percent (Provisional) for the previous week (ended 03/09/2011).  The groups and items for which the index showed variations during the week are as follows:- The index for 'Food Articles' group rose by 0.2 percent to 195.7 (Provisional) from 195.4  (Provisional) for the previous week due to higher prices of poultry chicken (8%), fish-marine (6%), gram and urad (2% each) and egg, tea, barley, fish-inland, arhar and moong (1% each). However, the prices of maize (4%), jowar and fruits & vegetables (2% each) and bajra, ragi and wheat (1% each) declined. The index for 'Non-Food Articles' group rose by 0.1 percent to 185.4 (Provisional) from 185.2  (Provisional) for the previous week due to higher prices of raw cotton (4%), raw jute (2%) and raw silk,      gingelly seed, soyabean, copra (coconut) and groundnut seed (1% each). However, the prices of      flowers (16%), castor seed (5%) and linseed and gaur seed (1% each) declined. The index for 'Minerals' group declined by 1.4 percent to 306.3 (Provisional) from 310.8 (Provisional) for the previous week due to lower prices of crude petroleum (3%). FUEL & POWER (Weight 14.91%) The index for this major group rose by 0.8 percent to 168.2 (Provisional) from 166.8 (Provisional) for the previous week due to higher prices of electricity (industry) (7%), electricity (agricultural) (6%),      electricity (domestic) (4%) and electricity (commercial) and electricity (railway traction) (3% each). The annual rate of inflation, calculated on point to point basis, stood at 13.96 percent (Provisional) for the week ended 10/09/2011 (over 11/09/2010) as compared to 13.01 percent (Provisional) for the previous week (ended 03/09/2011).  Build up inflation over the week, financial year end and over the year is given in Annexure-I for some important items. Trend of rate of inflation during last six weeks is also given for some important items in Annexure II. Next date of press release: 29/09/2011 for the week ending 17/09/2011 This press release is available at our home page http://eaindustry.nic.in

Commodities/Major Groups/Groups/Sub-Groups	Weight	WPI Sep 10, 2011	Latest week over week		Build up from end March		Year on year		52 week Average
			2010-11	2011-12	2010-11	2011-12	2010-11	2011-12
Primary Articles	20.12	201.9	0.73	-0.05	8.04	7.17	17.65	12.17	14.79
Food Articles	14.34	195.7	0.73	0.15	9.37	9.27	16.30	8.84	11.16
Cereals	3.37	176.6	0.18	-0.67	2.29	2.97	7.00	4.13	4.11
Rice	1.79	173.3	0.30	-0.06	2.15	3.90	5.71	4.02	3.72
Wheat	1.12	168.1	0.00	-0.71	0.99	-1.47	9.02	-2.72	-0.40
Pulses	0.72	198.1	-2.50	1.43	-2.50	4.59	3.06	1.49	-6.80
Vegetables	1.74	211.7	4.37	-0.38	45.57	47.63	12.25	12.13	13.56
Potato	0.20	159.4	5.90	-0.56	37.49	48.56	-46.09	13.78	-20.96
Onion	0.18	246.5	8.70	-1.99	21.94	46.12	7.48	28.92	40.59
Fruits	2.11	176.5	1.35	-2.75	3.23	-5.26	11.52	17.67	22.00
Milk	3.24	194.6	-0.17	0.15	3.40	11.84	23.55	10.38	11.82
Egg, Meat & Fish	2.41	216.6	0.20	3.34	13.26	9.73	29.29	9.28	14.03
Non-Food Articles	4.26	185.4	1.02	0.11	4.85	-3.29	18.72	17.42	23.72
Fibres	0.88	228.3	-0.79	3.40	16.39	-20.45	31.84	29.13	54.42
Oil Seeds	1.78	162.2	0.58	0.37	2.50	7.49	4.27	16.44	9.38
Minerals	1.52	306.3	0.00	-1.45	5.09	14.89	25.79	25.84	24.09
Fuel & Power	14.91	168.2	0.00	0.84	5.35	6.52	11.48	13.96	11.99
Liquefied Petroleum Gas	0.91	147.3	0.00	0.00	14.99	14.27	15.30	14.27	14.11
Petrol	1.09	172.4	0.00	0.00	8.62	8.70	15.33	23.23	23.41
High Speed Diesel Oil	4.67	167.8	0.00	0.00	6.15	9.24	14.64	9.32	10.36

Commodities/Major Groups/Groups/Sub-Groups	Weight (%)	Rate of Inflation for the week ending
		10-Sep-11	03-Sep-11	27-Aug-11	20-Aug-11	13-Aug-11	06-Aug-11
Primary Articles	20.12	12.17	13.04	13.34	12.93	12.40	11.64
Food Articles	14.34	8.84	9.47	9.55	10.05	9.80	9.03
Cereals	3.37	4.13	5.02	5.45	4.64	5.22	6.23
Rice	1.79	4.02	4.39	4.65	4.40	6.02	5.58
Wheat	1.12	-2.72	-2.03	-1.04	-2.52	-2.80	0.59
Pulses	0.72	1.49	-2.45	-1.56	-4.16	-5.56	-5.63
Vegetables	1.74	12.13	17.47	22.42	15.78	6.52	2.59
Potato	0.20	13.78	21.16	13.38	13.31	16.39	7.22
Onion	0.18	28.92	42.98	42.03	57.01	44.42	37.62
Fruits	2.11	17.67	22.64	16.57	21.58	27.01	26.46
Milk	3.24	10.38	10.02	9.12	9.22	9.51	9.76
Egg, Meat & Fish	2.41	9.28	5.97	7.26	12.62	13.37	9.93
Non-Food Articles	4.26	17.42	18.49	19.88	17.19	17.80	16.07
Fibres	0.88	29.13	23.91	38.60	37.66	37.18	34.32
Oil Seeds	1.78	16.44	16.68	17.43	15.43	15.91	16.47
Minerals	1.52	25.84	27.69	27.48	24.42	20.69	21.25
Fuel & Power	14.91	13.96	13.01	12.55	12.55	13.13	13.13
Liquefied Petroleum Gas	0.92	14.27	14.27	15.28	14.58	14.58	14.58
Petrol	1.09	23.23	23.23	23.23	23.23	23.23	23.23
High Speed Diesel Oil	4.67	9.32	9.32	9.32	9.32	9.32	9.32