DEMONETIZATION: Wholesale Price Inflation falls to 3.15% in November

The annual rate of inflation, based on monthly WPI, stood at 3.15% for the month of November, 2016 as compared to 3.39% for the previous month and -2.04% during the corresponding month of the previous year.

The fall is largely expected due to the impact of the withdrawal of high-denomination currencies during the month.

Build up inflation rate in the financial year so far was 4.45% compared to a build up rate of 0.80% in the corresponding period of the previous year.

It was widely expected that the prices of key commodities, particularly, food items, would decline in the aftermath of the currency demonetization.

PRIMARY ARTICLES (Weight 20.12%)

The index for this major group declined by 0.9 percent to 259.4 from 261.8 for the previous month. The groups and items which showed variations during the month are as follows:-

The index for ‘Food Articles’ group declined by 1.0 percent to 276.1 (provisional) from 278.8 (provisional) for the previous month due to lower price of fruits & vegetables (7%), moong and masur (4% each), urad (3%), maize (2%) and arhar and condiments & spices (1% each).

This essentially means that food items became cheaper in November compared to October.

However, the price of ragi (20%), gram (10%), coffee (10%), wheat (5%), poultry chicken and barley (4% each) and bajra, fish-inland, tea, fish-marine, egg and jowar (1% each) moved up.

The index for ‘Non-Food Articles’ group declined by 0.8 percent to 221.4 (provisional) from 223.2 (provisional) for the previous month due to lower price of sunflower (11%), groundnut seed and guar seed (5% each), soyabean and flowers (4% each), linseed, raw cotton and mesta (3% each), coir fibre (2%) and raw wool, fodder, gingelly seed (1% each). However, the price of raw rubber (5%), sugarcane (4%), raw silk (3%), raw jute and castor seed (2% each) and copra (coconut), safflower (kardi seed) and rape & mustard seed (1% each) moved up.

The index for ‘Minerals’ group declined by 1.7 percent to 207.4 (provisional) from 210.9 (provisional) for the previous month due to lower price of magnesite (20%), copper ore (17%), chromite (5%) and phosphorite (2%). However, the price of manganese ore (10%), limestone (6%), iron ore (4%) and zinc concentrate (1%) moved up.


Mining baron Sekhar Reddy arrested after Income Tax raids Sand miner Shekar Reddy has been arrested, two weeks after the seizure of crores of rupees and gold in an income tax raid. The arrest has come hours after Income Tax officials conducted a raid on Tamil Nadu's top bureaucrat chief secretary P Rama Mohana Rao at his home.It was...
Demonetization: RBI removes ‘explanation’ requirement for KYC accounts The Reserve Bank of India has responded to widespread criticism of its directive to collect 'explanations' from those depositing more than Rs 5000 by clarifying that this directive will not apply to bank accounts with proper documentation."On a review of the above, we advise ...
Demonetization: Modi announces bumper prizes; 15 lakh users to get 1,000 rupees Narendra Modi announced several 'prize schemes' to promote cashless transactions.Under the schemes announced today, there will be two sets of prizes for consumers and another for small merchants.Under the first scheme, any customer who uses any electronic form of payment,...
Demonetizaton: Govt places limits on last minute deposits The Reserve Bank of India said that any person who continues to hold old notes of 500 and 1000 rupees in bulk will get only one more chance to deposit them into bank accounts and will also have to provide an explanation for the delayed deposit."Tenders of SBNs in excess of ₹ ...
Demonetization: Swaraj India says political parties could become money laundering centers Swaraj India party today said the Income Tax department's decision to continue to provide immunity to political parties from having to reveal their sources could turn them into money laundering centers.According to Section 13(A) of the Income Tax Act, 1961, if you have regist...
Domino’s Pizza starts cashless facility for phone orders Domino's Pizza has started cashless payment facility for those who order by phone as well."Post demonetization, we have seen many customers choosing to order online. Consumers coming to our restaurants to dine in or carry out are able to pay With Credit caras or Wassets. Howe...
After pumps, Bata stores to provide cash withdrawal The story has been withdrawn by the company.
Modi says people who deposited others’ money may get to keep it all Opening a new front in the fight against black money, Prime Minister Narendra Modi today said people who were forced or tricked into depositing other people's money into their bank accounts may be allowed to keep the entire sum for themselves."Do not touch that money," Modi s...
Petrol Pumps, Airlines Will Not Take Old Notes From Saturday | DEMONETIZATION Old notes will no longer be accepted at petrol pumps and airline ticket counters starting from Saturday, according to sources.So far, petrol pumps and airlines had been given an exemption from demonetization of 500 and 1000 rupee notes.However, in an effort to control...
Fitch revises US growth estimates on Trump election, says protectionism to rise The surge in populism and anti-establishment sentiment witnessed in the Brexit vote and Donald Trump's victory in the US presidential election seem likely to push structural policies in the direction of economic nationalism, said Fitch Ratings in its latest global economic outloo...
BJP asks all MPs, MLAs to submit bank statement to party As part of the ongoing crackdown on tax evasion and illicit funds, the Bharatiya Janata Party has asked all its MPs and MLAs to submit the full details of their banking transactions from Nov 8 onwards.The central leadership of the party will examine the bank statements of the...
7 ILLOGICAL REASONS to oppose DEMONETIZATION The current demonetization move by the Narendra Modi government has seen a lot of accusations and counter-accusations being levelled by both the supporters and opponents of the move.While the government has tried to deal head on with the official accusations levelled by opp...
DEMONETIZATION: How some earned lakhs standing in queues The government has banned over-the-counter exchange of old 500- and 1000-rupee notes due to suspected gaming of the system by those with black money. According to banking industry sources, the over-the-counter exchange system was being massively misused by hawala operators and ot...
Despite Demonetization, India will beat China in GDP growth: Fitch Ratings Despite a moderation in India's GDP growth rate in the short term due to cash crunch, the Indian economy will still grow faster than that of China, global ratings agency Fitch said."We still expect India’s GDP growth to trend higher than China’s in the medium term," said the ...
FULL TEXT: Ratan Tata’s statement on Demonetization Ratan Tata courtsey:tata.comRatan Tata, one of the most respected business figures in India and the chairman of Tata Trusts, has drawn attention to the practical difficulties faced by ordinary citizens in dealing with the ongoing currency exchange program.Tata, who was o...
FULL TEXT: Ratan Tata’s statement on Demonetization Ratan Tata courtsey:tata.comRatan Tata, one of the most respected business figures in India and the chairman of Tata Trusts, has drawn attention to the practical difficulties faced by ordinary citizens in dealing with the ongoing currency exchange program.Tata, who was o...
Rahul Gandhi seeks Parliamentary probe into ‘leak of information’ ahead of demonetizatio... Congress Vice President Rahul Gandhi dismissed charges that the opposition was not speaking in one voice on demonetization and said the entire opposition is united in their demands.Asked whether the opposition parties wanted a roll-back, Gandhi said there were only two demand...
82,000 ATMs recalibrated out of nearly 2 lakh so far Banks have recalibrated 82,000 out of a little over 2 lakh ATMs in the country, economic affairs secretary Shaktikanta Das."It will be only a matter of a few days (more) till all the ATMs are recalibrated," Das said.To ease cash supply to the agricultural sector, a total ...
Fitch says demonetization gains may not last Fitch Ratings said the positive effects are unlikely to be strong and sufficiently enduring "to support credit profiles" and will impact GDP growth in the current quarter.Though the gains will be substantial in the short-term, they may not last as people may still go back...
Hiring slows in October due to festival effect – Naukri.com Hiring activity fell 8% October this year compared to the same month a year ago, according to Naukri.com's Job Speak Index.This dip was primarily caused by the festive season which saw Dussehra, Durga Pooja and Diwali fall in October, the company said. "Hiring activity ge...
Modi Govt to give ‘cashback’ on black money destroyed? He may not be able to deliver the Rs 15 lakhs, but according to a media report, Narendra Modi's government is thinking of transferring at least part of the black money destroyed through demonetization to Jan Dhan account holders.Jan Dhan accounts were opened in 2014 by econom...
No Note Exchange, only Account Withdrawals Tomorrow as banks take a breather There will no over the counter exchange of currency tomorrow (Saturday) as banks have requested for a one-day break from the heavy workload.The only exception will be for senior citizens.Deposits and withdrawals will continue."The entire staff of the banks have been d...
RBI chests have enough cash – ICICI Bank CEO ICICI Bank Chief Executive Officer Chanda Kocchar today said the Reserve Bank of India's currency chests have enough cash and there is no situation of scarcity for banks in securing notes.Kocchar also said that all banks including hers are bringing more and more ATMs into wo...
Praful Patel says Modi has made it difficult to fight elections Nationalist Congress Party leader Praful Patel said political parties are facing a lot of problems in fighting elections due to the ongoing crack-down on cash by Narendra Modi government."You know what is going on with fighting elections.. you have also been a treasurer," Pat...
CA explains why Modi banned 1000 note & issued 2000 rupee note It's a question that has plagued the best minds of the country and no one has yet been able to figure out why the government came up with a 2,000-rupee note when it had got rid of the Rs 1000 note to control black money.However, Mehul Shah, a chartered accountant from Surat h...