Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
31 October, 2014 15:02 IST
News
WPI inflation to moderate to 7% in 2013-14: CRISIL
Source: IRIS | 15 Jan, 2013, 11.49AM
Comments  |  Post Comment

India's headline inflation, based on monthly WPI, declined 7.18% in December 2012 as compared to 7.24% for the previous month. It was slightly below with market expectations of 7.3%.

CRISIL Research believes that continued moderation in core inflation created downward pressure on overall inflation, offsetting the impact of a sharp rise in primary food inflation to 11.2% in December. Core inflation as measured by non-food manufacturing inflation declined for a fourth consecutive month and stood at 4.2% in December, down from a peak of 5.8% in August 2012.

CRISIL Core Inflation Indicator (CCII) also declined to 5.5% in December from 5.7% in November. Despite rising input costs due to a weak rupee and fuel price revisions, core inflation has continued to moderate. This is indicative of the limited pricing power of corporates due to slowing demand in the economy.

In 2013-14, CRISIL Research expects average WPI inflation to moderate to 7% from 7.7% forecast for 2012-13. Easing of inflationary pressures is premised on the expectation of higher agricultural output (assuming normal monsoons), a stronger rupee and lower international crude oil prices.

''Moreover, demand-side pressures are expected to remain weak due to the lagged impact of a sharp slowdown in GDP growth this fiscal year. In view of a sustained moderation in core inflation over the last 4 months and anticipation of a lower core going ahead, we expect the RBI to cut policy rates by 25 bps in its monetary policy review on Jan. 29, 2013,'' it said.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.


News
IDBI Bank Q2 profit plunges 38.5% - 31-Oct-2014 14:49
Advanta consolidated quarterly earnings zoom 10.80 times - 31-Oct-2014 14:30
Sri Lakshmi Saraswathi Textiles (Arni) swings to loss in Jul-Sep quarter - 31-Oct-2014 14:21
Indo National standalone quarterly net soars 2.18 times - 31-Oct-2014 14:18
Kirloskar Brothers turns to loss in Jul-Sep quarter - 31-Oct-2014 14:14
M&M Q2 in-line; profit falls 4.3% - 31-Oct-2014 14:06
NTPC standalone quarterly profit declines 16.9% - 31-Oct-2014 13:45
PVR consolidated quarterly net zooms 13.28 times - 31-Oct-2014 13:39
Toyama Electric standalone quarterly net soars 2.59 times - 31-Oct-2014 13:32
V X L Instruments swings to profit in Jul-Sep quarter - 31-Oct-2014 13:29
Shetron swings to consolidated profit in Jul-Sep quarter - 31-Oct-2014 13:25
more...
* Q - Quote , N - News , C - Chart , F - Financials
Comments Post comment 
 Post Comment
Name Email
Comment
Security Code type   b6szkg into this box
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer