If P. Chidambaram stakes claim for India’s growth story and record tax collection, he should not hesitate to paint himself in black for the co-lateral damage he has caused to 80%+ of India’s population by doubling the Inflation during his tenure and making it reach a new 13 year high of 11.42% [Higher than the highest rate of Interest offered by Bank’s Certificate / Fixed Deposits]
Rising global oil prices with record Inflation has put the Indian markets into PANIC selling mode by Institutional Investors. Until yesterday, Net FIIs selling in the Indian market for the month of June is Rs 9,500 crore [$2 bn].
Looking at the components, primary articles were up 10.96%; manufactured products were up 9.74% while the fuel price index was up 16.37%. Similar to trends seen since March this year, the uptrend is due to edible oils classified under non-food articles, fuel (with market determined fuels up 30%-50%), basic metals up 21.3% and iron-ore up 42.6%.
Upward revisions to the index continue with the April 19 data being revised up from 7.57% to 8.23%. Of the headline 11.42% WPI number, 2.49% is attributed to primary articles, 5.42% to manufacturing and 3.54% to the fuel index.