Views on WPI inflation - February 2014: Angel Broking

Views of Ms. Bhupali Gursale ( Economist - Angel Broking) on WPI inflation:

"The headline WPI inflation during February 2014 has moderated to a nine-month low on account of easing of food as well as fuel inflation. At the same time though core WPI inflation has picked up to 3.2% during the month and the core inflation print for December 2013 has also been revised higher to about 3.3% from 2.8% reported earlier reflecting pass-through of higher input prices. Going ahead too, we believe that this non food, non fuel component is likely to remain above 3% partially impacted by the low base effect setting in. As far as the RBI's policy action is concerned, we believe that it is more likely to be impacted by retail inflation and despite considerable moderation, the CPI inflation still remains over the 8%-level. We continue to expect a status quo on rates in the April 1st policy review."

Source : Equity Bulls

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