Inflation in single digits, already!
Back in August, I wrote this post: Inflation? No problem (by December 2008)
I predict that by December 31, 2008:
- WPI in India will be below 8% (yes, single digits!)
This was at a time when inflation was in double digits & rising, and when the pundits were projecting 17-18% WPI by now. Well, here is the latest inflation data, via Economic Times: Sharp dip in inflation makes room for rate cuts
India’s wholesale price index, the most widely watched inflation measure, rose 8.98 percent in the 12 months to Nov. 1, well below forecasts for a rise of 10.37 percent.
. . . a decline in global commodity prices, robust domestic agricultural output and a fall in demand in a slowing economy helped bring the rate to single-digits well ahead of earlier expectations.
That’s close to my target of < 8% by December 31st, and we still have 2 months to go. Meanwhile, this is more ammunition for further rate cuts from the RBI.
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