Hurricane Phailin serves up a CPI storm

Dec 14 2013, 22:37 IST
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Phailin states like Odisha saw a 3.8% hike in CPI month-on-month Phailin states like Odisha saw a 3.8% hike in CPI month-on-month
SummaryStates that fell in the path of Hurricane Phailin had a higher November inflation

3.8%

West Bengal- 2.3%

Andhra Pradesh-1.2%

National average-1.4%

*The non-Phailin states, by contrast, showed a much lower CPI print. While Maharashtra and Madhya Pradesh saw just a 0.5% month-on-month hike in CPI, the number was 0.6% for Tamil Nadu, 0.9% for Kerala and 1% for Punjab versus the national average of 1.4%.

States affected by Phailin/ M-o-M change in CPI

Maharashtra-0.5%

Madhya Pradesh-0.5%

Tamil Nadu- 0.6%

Gujarat-0.5%

Kerala-0.9%

National average-1.4%

Apart from worrying about whether he wants to be reacting to news that is already old – since CPI is going to be falling soon – RBI Governor Raghuram Rajan needs to decide whether he is going to react to local price jumps or whether he is going to look at the larger national picture. Watch this space.

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