Friday, September 12, 2008

how do u interpret inflation figure ......

yesterdays inflation figure is 12.1 % ..... is it good ..... is it telling u the whole truth .....
pl look at week on week inflation figure .... and it has gone up by 5 ticks or 0.5 points or nearly 0.2 % .....
then why do u see reduction in inflation number put out by govt ...... it is because of the base effect ..... govt does not compare week on week .... they compare yr on yr on 52 week basis ..... so if 52 weeks ago jump was 7 or 8 ticks, and now it is 5 ticks, u wl find that govt will say that inflation is coming down .....
5 ticks week on week is simply unacceptable and it will reflect on the market today ....
so dont be sanguine with 12.1 % figure and try to look little beyond that .....

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