Headline inflation for month of May stood at 9.06%

14 Jun 2011 Evaluate

From last six to seven months WPI inflation in the economy has been around 9% on an average. The WPI inflation numbers for month of May 2011 is disappointing for every segment in the economy. This higher-than-expected increase in inflation without diesel, kerosene and cooking gas prices hike. Oil ministry is trying hard to reduce public sector oil marketing companies’ revenue losses and a price hike in remaining petroleum products is likely to take place. The present economic scenarios in the economy are making obvious for RBI’s 25 basis point hike in its key policy rates.

According to data released by the government today, WPI inflation in March this year has been revised upward to 9.68 % from the provisional 9.04 %. This upward revision is more than the market expectations.

The high headline inflation been above 9 % on an average from last six months, the manufacturing inflation going above 7% is serious concern for the nation’s sustainable development, this increase shows that the inflationary pressures are high despite the central banks aggressive monetary standing. With this elevated inflation, RBI is likely to go for 25 basis point hike.

According to the data released by the ministry of commerce and industry, the WPI inflation in the country stood at 9.06% in May 2011 against 8.66% on the previous month. This increase in inflation was on account of manufacturing inflation which have increased more than 2% from November 2010. On Y-O-Y bases, there is moderation is primary articles, food articles and fuel and power by 11.3%, 8.37% and 12.32% respectively. But the manufacturing sector show record increase of 7.27%, which is going to pinch hard to the industry and economy at large.

Looking at the different segments of WPI inflation, it is clearly visible that the May inflation is driven by higher manufacturing goods price which increased 7.27% (Y-O-Y) as against to 6.18% for last month. The manufacturing sector accounts for around 65% of wholesale price index. The index for manufacturing sector rose by 1% to 137.2 from 135.8 for the last month.

Within the primary articles stood at 11.3% (Y-O-Y) as against 12.05% of last month. On Month-on-Month the index for this segment rose by 0.3% to 192.1 (provisional) from 191.6 (Provisional) for the last month. The index for food articles rose by 1.6% to 186.5 (provisional) from 183.5 (provisional) for the previous month. On Y-o-Y food articles stood to 8.37% as against 8.71% of last month. The index for ‘Non-Food Articles’ declined by 4.4% to 184.5 (provisional) from 192.9 (provisional).

Finally the index for the fuel and power which has weight of almost 15% in the WPI stood at 12.32 % (Y-O-Y). the index of fuel and power rose by 0.3% to 160.4% (provisional) from 159.9 (provisional) for the previous month due to mainly higher prices of lubricants (5%), petrol, light diesel oil and bitumen (4% each), furnace oil and lignite (2% each) and aviation turbine fuel (1%). However, the prices of coke (6%) declined. The petrol which account for almost 1% of the WPI saw almost 27% (Y-O-Y) increase in May. The huge jump in price is mainly because of increase in price of petrol by Public sector Oil marketing companies, in May OMCs had increase petrol prices by 8.6%.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Fiduciary-first advisory model.
As SEBI-registered IAs, we are legally and ethically bound to act in the best interests of our clients. We do not sell or distribute any financial products. This ensures our guidance is 100% unbiased and conflict-free.
Deep fundamental research + robust valuation discipline.
Built on more than 15 years of equity research, our framework combines quality assessment, intrinsic value estimation, and a sensible margin-of-safety approach.
Process—not predictions.
We don’t rely on guesswork or market timing. Instead, we focus on asset allocation, risk management, and long-term compounding.
Technology + Human Intelligence.
We believe a combination of both is essential for investing success. We constantly innovate and upgrade in-house tools, financial X-rays, and portfolio analytics so that our team of analysts and advisors are equipped with the best.
Partner with Clients.
We follow a DIWM (Do-It-With-Me) approach where we partner clients in setting goals, financial planning, educating on our investing process and share decision-enabling resources transparently with our clients who retain control on execution.

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

Investing in stocks, mutual funds, debt, and gold
Quality-at-Reasonable-Price way of investing in stocks
Constructing Direct Stock Portfolios with Core, Booster, and Amplifier stocks
A Mutual Fund Portfolio that delivers consistent out-performance and meaningful diversification (low overlap)
Periodic review and rebalancing
Clear Buy-Sell-Hold, and Position-sizing frameworks

PROPRIETARY FRAMEWORK

Portfolio
Architecture >
Stock Picking.

Stop managing a collection of "tips." Access the ABC Framework to build a portfolio that survives cycles and compounds wealth.

Core for Stability

Booster for Alpha

Amplifier for Exponential Wealth

Build a Stress-Tested Portfolio.

Our Sapphire Advisory uses the ABC Concept to ensure you never have to panic during a market correction.

Core Stocks

STABILITY

Booster Stocks

GROWTH

Amplifier Stocks

ASYMMETRY

● Conflict-Free ● SEBI Registered ● 15Y+ Track Record

Access Sapphire ABC Strategy →

Limited Capacity for New Fiduciary Partners

Headline inflation for month of May stood at 9.06%

MoneyWorks4Me Premium

Follow us at

MoneyWorks4Me

About MoneyWorks4Me

Our Vision

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.