Chidambaram’s Inflation beat Analyst Expectations

Breaking News: Latest Inflation NumbersIndian Inflation soared to a NEW HIGH for the week ended June-7th to 11.05% Vs 8.75%. More Details will be updated soon.

Update @ 16:00 IST:
While this week’s data incorporates the effect of the fuel price hike (auto-fuels by 10%-15% and cooking fuels by 17%), the headline was expected to be close to ~10% levels. Besides the fuel price increase, the uptrend seen in basic metals and iron-ore since the last two months continues up 20.7% and 41.6% respectively.

Primary articles were up 10.8%; manufactured products were up 9.1% while the fuel price index was up 16.25%. Of the headline 11.05% WPI number, 2.5% is attributed to primary articles, 5.1% to manufacturing and 3.5% to the fuel index.

Most Analysts are of the view that RBI will hike the repo rate ahead of July policy meeting.