Fairval

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CPI shows a steady rising trend

Posted by fairval on February 25, 2010

Persistently high CPI

Hadn’t quite looked at the CPI data over a longer term period, but just look at the 6 year CPI data. It is clear that CPI hasn’t suddenly risen in the past 1-2 years. It has been rising for last many years. In fact, it is almost one straight raise from FY05.

For 4 years in a row, inflation is above 6%. That isn’t healthy at all. No idea why it is so strong though

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3 Responses to “CPI shows a steady rising trend”

  1. Aditya said

    well – may be you need to break this up into components – a) energy b) food c) non food – and that will perhaps give some sense if the agri revolution has hit a outout barrier, this is a weak rupee thing (energy) or whether it isindia growing too quick for its own good (non food). I dont have an answer…but just a thought

  2. Munish Hingorani said

    “Weak rupee thing” probably. By preventing appreciation of our currency we are importing inflation to subside exports.

  3. fairval said

    yes, Adi, will see if i can get that data.
    Weak rupee could be an explanation. That will depend also on how much of the consumption basket is linked to imports.

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