HOME         WEBSITE         SUBSCRIBE           E-GREETINGS   
                               

Thursday, July 02, 2009

Inflation at -1.30%

Food inflation is on elevated level

The WPI based inflation inflation recorded negative growth rate in third consecutive week. The official Wholesale Price Index for 'All Commodities' for the week ended 20th June 2009 rose by 0.2 percent to 234.6 from 234.2 last week. Headline inflation rate recorded 1.30% fall for the week ended 20 June 2009 compared with 1.14% fall last week and 11.91% growth during the week ended 21 June 2008.

The index for primary articles rose by 0.5 percent to 257.6 from 256.3 last week. The index for 'Food Articles' group rose by 0.6 percent to 252.8 from 251.2 for the previous week due to higher prices of fruits & vegetables (4%) and arhar (1%). However, the prices of fish-marine and tea (4% each) and jowar (3%) declined.

The index for 'Non-Food Articles' group rose by 0.3% to 236.8 from 236.0 for the previous week due to higher prices of fodder (4%) and groundnut seed (2%). However, the prices of raw wool (4%), raw silk and raw rubber (2% each) and copra and linseed (1% each) declined.

The index for fuel and power rose by 0.1% to 327.9 from 327.5 for the previous week due to higher prices of naphtha (2%).

The index of manufactured products rose by 0.05% to 205.9 from 205.8 last week. In this group, food products grew marginally to 233.3 from 233.2 from last week due to higher prices of cakes & sweet roles (9%) and sugar (1%). However, the prices of rice bran oil (4%) and imported edible oil and cotton seed oil (2% each) declined.

The index for 'Textiles' group rose by 0.3% to 143.1 from 142.7 for the previous week due to higher prices of hessian cloth (6%) and hessian & sacking bags (2%).

The index for 'Chemicals & Chemical Products' group rose marginally to 228.3 from 228.2 for the previous week due to higher prices of phenol (15%) and p.v.c. resins (5%).

On 1 July 2009 government hiked petrol and diesel prices by Rs 4 and Rs 2 per litre respectively. However Kerosene and LPG prices were left untouched. Recently we have seen surge in oil prices globally which added pressure on fuel sale losses for oil companies domestically (specially the public sector oil companies). In this regard government decided to pass the burden on to the end users. However there is no change in Kerosene and LPG prices, which has given relief to Aam admi. This rise in prices may be reflected in rising inflation figures. Ironically higher food inflation is already adding pressure on individual as they are paying higher price to purchase daily consumer goods.

The Economic Survey 2008-09 said the government should decontrol petrol and diesel prices as long as the domestic prices remain below the cost of import, demand would continue to grow accentuating the negative impact. The decontrolling of petrol and diesel prices may add further stress on common man's pocket.

Posted by

Blog Archive

____________________________________________________________________________________________

Disclaimer - All investments in Mutual Funds and securities are subject to market risks and uncertainty of dividend distributions and the NAV of schemes may go up or down depending upon factors and forces affecting securities markets generally. The past performance of the schemes is not necessarily indicative of the future performance and may not necessarily provide a basis for comparison with other investments. Investors are advised to go through the respective offer documents before making any investment decisions. Prospective client(s) are advised to go through all comparable products in offer before taking any investment decisions. Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the fund will be achieved. Information gathered & material used in this document is believed to be from reliable sources. Decisions based on the information provided on this newsletter/document are for your own account and risk.


In the preparation of the material contained in this document, Varun Vaid has used information that is publicly available, including information developed in-house. Some of the material used in the document may have been obtained from members/persons other than the Varun Vaid and which may have been made available to Varun Vaid. Information gathered & material used in this document is believed to be from reliable sources. Varun Vaid however does not warrant the accuracy, reasonableness and/or completeness of any information. For data reference to any third party in this material no such party will assume any liability for the same. Varun Vaid does not in any way through this material solicit any offer for purchase, sale or any financial transaction/commodities/products of any financial instrument dealt in this material. All recipients of this material should before dealing and or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice.


Varun Vaid, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any decision taken on the basis of this material. All recipients of this material should before dealing and/or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice. The investments discussed in this material may not be suitable for all investors. Any person subscribing to or investigating in any product/financial instruments should do soon the basis of and after verifying the terms attached to such product/financial instrument. Financial products and instruments are subject to market risks and yields may fluctuate depending on various factors affecting capital/debt markets. Please note that past performance of the financial products and instruments does not necessarily indicate the future prospects and performance there of. Such past performance may or may not be sustained in future. Varun Vaid, including persons involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation in the financial instruments/products/commodities discussed here in or act as advisor or lender / borrower in respect of such securities/financial instruments/products/commodities or have other potential conflict of interest with respect to any recommendation and related information and opinions. The said person may have acted upon and/or in a manner contradictory with the information contained here. No part of this material may be duplicated in whole or in part in any form and or redistributed without the prior written consent of Varun Vaid. This material is strictly confidential to the recipient and should not be reproduced or disseminated to anyone else.


Varun Vaid also does not take any responsibility for the contents of the advertisements published. Readers are advised to verify the contents on their own before acting there upon.


Published Credits goes to following sources & all the mentioned sources as footer below the published material- Bloomberg, Valueresearch Online, Capital Market, Navindia, Franklin Templeton, Kitco, SBI AMC, LIC AMC, JM Financial AMC, HDFC AMC, The Hindu, Business Line, Personal FN, Economic Times, Reuters, Outlook Money, Business Standard, Times of India etc.