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Sentiment of WPI data released Today 14 August 2023

 

The sentiment of the India WPI data released today is mixed. On the one hand, the data shows that inflation is still declining, which is good news for consumers. The WPI inflation rate for June 2023 was 4.12%, down from 3.48% in May. This is the third consecutive month of decline in the WPI inflation rate.

On the other hand, the decline in inflation is being driven by a fall in prices of fuel and food, which are two essential commodities for most Indians. The prices of fuel fell by 12.63% in June, while the prices of food fell by 1.24%. This is likely to put a strain on the budgets of households, especially those in the lower income brackets.

Overall, the sentiment of the India WPI data released today is mixed. The decline in inflation is good news for consumers, but the fall in prices of essential commodities is likely to put a strain on household budgets. It remains to be seen how the Reserve Bank of India will respond to the latest WPI data.

Here are some additional reactions to the India WPI data released today:

  • Sujan Hajra, Chief Economist at Anand Rathi Financial Services: "The moderation in WPI inflation is a welcome relief, but the decline in fuel and food prices is a concern. This could put a strain on household budgets and dampen demand. The RBI will need to keep a close eye on inflation and take appropriate measures to support growth."
  • Dhruv Gupta, Economist at IndusInd Bank: "The decline in WPI inflation is largely due to base effects and the fall in prices of fuel and food. The underlying trend in inflation remains elevated and the RBI will need to continue with its monetary tightening measures to bring inflation under control."
  • Abhishek Upadhyay, Economist at ICICI Securities: "The decline in WPI inflation is a positive development, but it is important to note that the fall in prices of fuel and food is temporary. The RBI will need to continue with its monetary tightening measures to bring inflation under control in the medium term."

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