Inflation Report for Feb'11

"Inflation"

Government estimated 8.6% economic growth but inflation worries. The government confirmed  economic growth of 8.6% for  the current fiscal year ending in march, compared to 8% increase in the previous fiscal year. The higher growth also comes with a sharp rise in current account deficit and a rise in inflation to above 8%. 

Finance Minister Pranab Mukherjee said despite the challenges on trade balance and inflation “8.6% economic growth is quiet encouraging."

India’s economy is running close to overheating and future economic growth is likely to be decreased unless the government shows its ability to improve food supplies and control inflation. 
Stock market is also in  pressure because the situation is really depressing. All sectors of stock market: equity market, futures market, intraday trading and commodity market showing the high level of volatility.

India food inflation declines to 13.07% on Feb 10, 2011:-

As for food inflation, it has remained high during the course of January before declining to a seven-week low of 13.07% towards the end of the month as prices of potatoes and pulses eased.Food inflation, which snapped the three-week rising trend, fell by nearly 4 percentage points from 17.05 per cent in the week ended January 22. It was 22.08 per cent a year-go.  

India's headline annual rate of inflation, based on the monthly Wholesale Price Index (WPI), declined slightly to 8.23 per cent for January this year as compared to 8.43 per cent for December and 8.53 per cent in the  month of November last year.

The statement said the official WPI for all Commodities (base: 2004-05=100) for January 2011 rose by 1.2 per cent to 145.9 from 144.1 for the previous month.

Data from  Government on February 10 had shown that the food inflation rate had eased to 13.07 per cent for the week ended January 29 from 17.05 per cent in the previous week, thanks mainly to lower prices for onions and vegetables.