The markets fell another 100 points as the WPI inflation came in higher at 6.10 percent against expectations of 5.8 percent, led by higher food prices.
Inflation rose to 6.1 percent in August as compared to 5.79 in July, with the food articles index up 5.3 percent month-on-month. Of the vegetables, onion price are up 51 percent year-on year.
While the Sensex was trading up 125 points at 19960, the Nifty was up just 28 points at 5880. The food inflation rose to 18.9 percent against 11.1 percent ( month-month month) Fuel and power also rose 1.3 percent to 11.34 percent.
The minerals group index is up 0.7 percent, while the non food articles index is down 0.5 percent month on month. July WPI was also revised to 5.16 percent from 4.8 percent.
Dr C Rangarajan, chairman of the Prime Minister’s Economic Advisory Council said inflation data indicates that the increase has been caused by a spike in primary articles, particularly vegetables, while manufacturing inflation has actually come down.
Inflation rose to 6.1 percent in August as compared to 5.79 in July, with the food articles index up 5.3 percent month-on-month. Of the vegetables, onion price are up 51 percent year-on year.
While the Sensex was trading up 125 points at 19960, the Nifty was up just 28 points at 5880. The food inflation rose to 18.9 percent against 11.1 percent ( month-month month) Fuel and power also rose 1.3 percent to 11.34 percent.
The minerals group index is up 0.7 percent, while the non food articles index is down 0.5 percent month on month. July WPI was also revised to 5.16 percent from 4.8 percent.
Dr C Rangarajan, chairman of the Prime Minister’s Economic Advisory Council said inflation data indicates that the increase has been caused by a spike in primary articles, particularly vegetables, while manufacturing inflation has actually come down.
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