Chart of the day | Divergent trends in inflation
Chart of the day | Divergent trends in inflation
The chart shows the divergent trends in inflation in primary articles and manufactured products. While prices of primary articles have fallen by 2.8% in the last couple of months, the prices of manufactured goods continue to increase and they’re up 0.6% in December over the previous month. That shows companies still have pricing power, which is also seen from the increase in output prices in the HSBC Purchasing Managers’ index. The chart shows that manufactured goods’ prices moved up more in December than in November—in November, they rose a mere 0.1% month-on-month. That’s probably an indication of the continuing strength of consumption, also evident from the November data on industrial production, although the rupee depreciation must also have had a hand.
Also See | Chart of the day (PDF)
PDF by Yogesh Kumar/Mint
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