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LATEST NEWS UPDATES | Sticky to the core

Sticky to the core

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published Published on Dec 14, 2021   modified Modified on Dec 15, 2021

-The Hindu Business Line

Besides global factors, structural inflation, which is sticky, might be setting in. The RBI should be ready

November readings for wholesale and consumer price index, the first at a three decade high and the second at a more modest three-month high, are a cause for concern. They raise questions over whether the Monetary Policy Committee’s projections for retail inflation will hold. A 14.2 per cent spike in WPI last month was marked by a 39.8 per cent rise in fuel and power prices and an 11.9 per cent rise in manufactured products. Meanwhile, November’s retail inflation of 4.9 per cent is marked by just a 2.6 per cent rise in the food and beverages basket (contrary to popular perception), which accounts for 54 per cent of the CPI weightage. 

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The Hindu Business Line, 14 December, 2021, https://www.thehindubusinessline.com/opinion/sticky-to-the-core/article37954906.ece?homepage=true


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