Inflation soars to fresh 13-yr high of 12.44%

Showing no sign of reversing its rising graph, inflation soared to a fresh 13-year high of 12.44 per cent for the week ended August 2, on the back of rising food and fuel prices.
While the index for fuel items, for instance, rose by 0.9 per cent, the index for food items was also up by 0.9 per cent. Raw rubber rose by 5 per cent and maize 4 per cent. WPI for all commodities was up by 0.3 per cent.
Earlier during the day a strong wave of selling towards end of session saw the Sensex end at day’s lows. The market was abuzz that inflation numbers would be above 12.4 per cent against media expectations of 12.16 per cent. Traders also squared off positions ahead of an extended weekend.
Annual inflation based on wholesale prices crossed the 12 per cent mark during the week ended July 26, fuelled by costlier manufactured products, fuel and food items other than vegetables. Vegetable prices showed a decline of 8 per cent from the year-ago period. However food products rose by 0.1 per cent, non-food articles 0.4 per cent and textiles by 0.4 per cent. Similarly, primary articles were up 0.1 per cent and chemical and chemical products 0.5 per cent. Fuel and petroleum remained unchanged. For more
Avdhoot Investment

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One Response to Inflation soars to fresh 13-yr high of 12.44%

  1. Rahul says:

    Hii,
    RBI has a long term target to curb inflation at 3% which kind of makes me laugh. The research by Global Insight shows that India at best will be able to do a 7% wonder in the long run.
    As far as the sensex goes, i think if it soars above 15500 with good volumes then it might test sub 18000 levels. But 15500 offers quite a significant resistance for the sensex.

    check by blog at:
    http://investorstreet.blogspot.com/

    Best Regards,
    Rahul.

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