Imported inflation hits 58-month high in February
Latest News »
- McDonald’s terminates franchise agreement with CPRL for 169 restaurants
- China expresses ‘strong dissatisfaction’ with US intellectual property probe
- University of Texas removes Confederate statues
- Tata Motors CEO says to invest Rs4,000 crore to boost car, truck sales
- Trai’s discussion paper on spectrum auction likely this week
India’s imported inflation hit a 58-month high of 9.73% in February, says a State Bank of India (SBI) Research report. Imported inflation refers to the spike in general price levels of goods due to an increase in the prices of imported commodities which are used as raw materials. The imported inflation rate has been derived by SBI Research by tracking movement in prices of components of the Wholesale Price Index (WPI) and thus indicates price increase in imported items in the WPI basket only.
Global crude oil prices, which have cooled off a little, were higher in the first two months of the year, pushing imported inflation northwards. Movement in global oil prices will be a key factor to be watched hereon.
Recently, the rupee has begun to appreciate against the US dollar. In this week, the Indian currency has risen by nearly 2%. According to some economists, only if this trend continues can one expect its positive impact to trickle down with a lag, which could tone down imported inflation going ahead.