The heavily flawed [manipulated to have outdated articles to keep the number Low] Inflation Number is back in Positive indicating aggressive price rise by even Industrial commodity while the Government is a mere spectator.
For the week ending 5 Sep ’09, headline inflation (the wholesale price index, WPI) stood at 0.12%. Inflation for the week ending 11 Jul ’09 was revised to -0.63% (from -1.17%).
The rise in food prices since Mar-09 is the main reason for the return of inflation. All the major food articles, such as cereals, pulses, fruits, vegetables, milk, non-vegetarian articles, condiments and spices, continued to move up. Food products (components of manufactured products) moved up due to the rise in prices of grain mill products and sugar.
As expected, the wholesale price index returned to inflation due to the continuous rise in food prices. Looking forward, we expect food prices to move up due to the start of the festive season in October. WPI inflation could cross 7% by end March 2010.