Economy watch
The gradual decline in the WPI is good news, but rising international crude prices can still spoil the party.
Inflation status: 2.97 per cent as on November 7, 2007.
Impact: The gradual decline in the WPI is good news, but rising international crude prices can still spoil the party.
Oil prices status: $96 (3,840) per barrel as on November 7, 2007.
Impact: Rising crude oil prices should be the trigger to raise domestic oil prices, but the impending elections in Gujarat and Himachal Pradesh have tied the government’s hands. If the government does raise prices, the consequent inflationary pressure will lead to a hardening of interest rates.
Compiled by Anand Adhikari
