
WPI inflation jumps to 13.11% in February
Inflation for manufactured products, which constitutes 64.23% to the WPI basket, soared to 9.84% year-on-year in February compared with 9.42% in January.
Inflation for manufactured products, which constitutes 64.23% to the WPI basket, soared to 9.84% year-on-year in February compared with 9.42% in January.
Highest increase in wholesale inflation since May; core inflation at an all-time high of 11.9% in October.
It is the time of the year to start chasing dark clouds over the Arabian Sea. Normal rains will offset the demand recession induced by the pandemic and wash away a lot of the country’s woes.
According to a BofA Securities report, the Covid-19 shock could delay India touching the GDP of Japan by three years. In their latest estimates, it will now happen by 2031 if the economy grows at 9%.
While the rating agency downgraded India’s sovereign rating, BofA Securities’ economists see the present downturn as cyclical rather than structural; say fiscal stimulus is critical for recovery.
While hoping for no rate action from RBI, Ind-Ra expects a macroeconomic hotchpotch if these factors sustain beyond a quarter.