CRISIL revises WPI-inflation forecast for 2012-13 to 8%
CRISIL Research has come out with its report July 2012 inflation data. According to the research firm, if diesel, LPG and kerosene prices are fully aligned to the global prices in a single revision, WPI Inflation will shoot up by 3.4 percentage points over and above the current level.
August 14, 2012 / 18:29 IST
CRISIL Research has come out with its report July 2012 inflation data. According to the research firm, if diesel, LPG and kerosene prices are fully aligned to the global prices in a single revision, WPI Inflation will shoot up by 3.4 percentage points over and above the current level.
WPI-based inflation has declined sharply in July to 6.9%, compared to 7.3% in June. This is mainly due to non-revision of diesel, LPG and kerosene prices for a year rather than decline in prices within the fuel category. The impact of last year’s revision in these prices on inflation - measured as a year-on-year change in prices - has dropped off this July. As and when administered fuel prices are revised upwards during this year, fuel inflation would once again pick-up. There remains significant suppressed inflation in the economy at present. Our calculation suggests that if diesel, LPG and kerosene prices are fully aligned to the global prices in a single revision, WPI Inflation will shoot up by 3.4 percentage points over and above the current level.In addition to suppressed fuel inflation, the upside risk to WPI-inflation arises from the adverse impact of deficient rainfall. As a result of higher-than-anticipated food inflation, CRISIL Research has revised the WPI-inflation forecast for 2012-13 up to 8% from 7% estimated earlier.Disclaimer: CRISIL Limited has taken due care and caution in preparing this Report. Information has been obtained by CRISIL from sources, which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. CRISIL Limited has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this Report. The Centre for Economic Research, CRISIL (C-CER) operates independently of and does not have access to information obtained by CRISIL's Ratings Division, which may in its regular operations obtain information of a confidential nature that is
not available to C-CER. No part of this Report may be published / reproduced in any form without CRISIL's prior written approval.To read the full report click on the attachment 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
