Feb WPI inflation at 6.84% vs 6.6% in Jan, rate cut seen

Moneycontrol Bureau

The February wholesale price index came in higher-than-expected at 6.84 percent.  A CNBC-TV18 poll had estimated WPI, the main inflation gauge, at  6.5% vs 6.6% in January 2013. Speaking to CNBC-TV 18, chairman of PMEAC said a decline in non- manufacturing group gives room for a rate cut.
Experts say fuel hikes in January and February have compounded the problem, rising to 10.47 percent from 7 percent in the previous month. December inflation has been revised higher at 7.31% Vs 7.18% (Prov). Meanwhile, bond yields have moved up. Here are the key inflation components:

• Primary Articles Inflation at 9.70% Vs 10.31% (MoM)
• Primary Articles Index up 0.6% (MoM)
• Fuel & Power Group Inflation at 10.47% Vs 7.06% (MoM)
  Fuel & Power Group Index ip 3% (MoM)
• Manufactured Products Inflation at 4.51% Vs 4.81% (MoM)
  Manufactured Products Index Down 0.1% (MoM)
• Food Articles Inflation at 11.38% Vs 11.88% (MoM)
  Food Articles Index up 0.2% (MoM)
• Non-food Manufactured Products Inflation at 3.8% Vs 4.1%(MoM)
• Non-food Articles Index up 1.6% (MoM)
• ll Commodities Index up 0.6% (MoM)
• Minerals Group Index up 0.9% (MoM)
• WPI LPG Prices Up 21% (MoM)