Situation
On an annual basis -
- Producer Prices rose 2.53% p.a in Feb’07 ( 0.19% p.a in Jan’07).
- Core inflation ( prices excluding energy and food) rose 1.88% in Feb’07 ( 1.77% p.a in Jan’07)
On a monthly basis -
- Prices rose 1.1% in Feb’07 ( - 0.19% in Jan’07)
- Core inflation was at 0.31% ( 0.25% in Jan’07 )
Conclude
( click / double click on pic for a clearer visual)
The price rises were fueled more by energy and food. Energy prices rose 3.5 % in Feb’07 compared with a 4.6 % drop in Jan’07.
Prices can be expected to range at the 0% - 3% p.a area till mid’07 . An Oil price drop towards 50$ - 52$ would perhaps lead to prices at the 0% area.
In any case we could expect some rise in Consumer Prices ( CPI) for the coming months. The rises may not be much.