The CPI for urban workers at 127 has grown by 6.7% p.a for the month ending January 2007.
The Index numbers for the past 4 months looks like this :
|
Month |
Index |
| October 2006 | 127 |
| November 2006 | 127 |
| December 2006 | 127 |
| January 2007 | 127 |
An absolutely brilliant constant !! We do live in wonderful times.
( click on chart for the bigger picture. NOTE : the WPI data for Dec’06 and Jan’07 is represented by the end of the month weekly index data)
The Situation
Last weeks release of the WPI numbers created scares of a runaway inflation.
My spouse who indulges in ground level reality economics - declared how she had made a smart investment ( “on an anuallised basis” ) - by buying ( hoarding??) onions,tomatoes and chicken in Mid Jan’07. ( chicken prices had doubled by mid Feb’07 , and she claims the same return for the onions and tomatoes)
Things did get a little out of hand when she claimed that her investment instincts were far superior to my hours of poring over economic numbers, fundamental and technical analysis and then ……. started giving me tips. ( “Sell” stock market - “Buy” a goat/chicken )
Fearing a coup ( her taking over our fund investments) I did threaten to expose her “hoarding” practice to the Government (as a blackmarketeer). She calmly told me - that she had already gotten me to eat the evidence.
She also pointed out an article on the Wholesale Price Index ( WPI) ( India releases inflation numbers - The devil is in the detail ) as to why the matter would not be bothered about - post 2-3 months. ( i.e post the elections in India)
She now claims that her instincts tell her that the CPI and WPI will show a “dip” in March’07.
Conclusion
As I speak the stock market (India and the rest of the world) has been falling - woe upon me.