Essay About Effect Of The Fuel Price Hike And Key Data Items

Indian Economy Update
Essay title: Indian Economy Update
India Econ Flash
Friday Factsheet
Introducing a quick update on key data items that are out each Friday
➤ Inflation now in double-digits – up 11.05%: The government’s worst
nightmare has come true with inflation touching 11.05% for the week ending Jun
7 v/s 8.75% last week and 4.28% a year ago. While this week’s data incorporates
the effect of the fuel price hike (auto-fuels by 10%-15% and cooking fuels by
17%), the headline was expected to be close to ~10% levels. Besides the fuel
price increase, the uptrend seen in basic metals and iron-ore since the last two
months continues up 20.7% and 41.6% respectively.
вћ¤ Key Contributors to Inflation and Index Revisions: Primary articles were up
10.8%; manufactured products were up 9.1% while the fuel price index was up
16.25%. Of the headline 11.05% WPI number, 2.5% is attributed to primary
articles, 5.1% to manufacturing and 3.5% to the fuel index. As seen in the chart
below, upward revisions to the index continue with the April 12 data being
revised up from 7.33% to 7.95%