Article;
http://economictimes.indiatimes.com/news/economy/indicators/inflation-hits-10-month-low-but-rate-cut-unlikely/articleshow/17620360.cms
Comment;
I disagree that the main gauge of inflation is WPI, and, it
is neither CPI nor core-inflation (manufactured products). If I had to choose
an indicator of inflation I would go for food-and-fuel-inflation because the
argument is that we need to protect the value of money poor people are getting
because their income/wages are more or less indefinite, and, depends upon a
variety of factors like season and availability of work. Poor people do not
consume all the products WPI, CPI and core-inflation take into account. Ninety
percent of their consumption basket includes food-and-fuel. Food inflation at
9.4% and fuel-inflation at 10% makes me, too, expect that key interest rate won’t
come down in the next 4-5 months…
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