July WPI at 11.16%: Care Ratings says food inflation trajectory depends on Kharif crop, core CPI to increase

Furthermore, he said, “As far as international manufactured goods, as well as fuel products, are concerned, I think that's something which will remain sticky in the upward direction. In terms of fuel, it is quite clear that the government is not willing to reduce the taxes. And even though we have seen international prices of crude oil moving in the downward direction, there is no respite as far as we're concerned, as consumers both at the wholesale as well as the retail level.

”According to him, the inflation numbers for WPI, given the fact that we had a negative base effect last year, are expected to be double-digit."Maybe from the point of view of policy, not very relevant --, people look at the CPI inflation but from the point of view of the industry, the fact that prices of manufactured products are going up, is reflective of regaining of some kind of pricing power, something which we've also seen in terms of the corporate results in the first quarter, which would probably get stretched even in the second quarter," he further explained.

“If we were looking at least from the CPI point of view, as the economy opens up, we have seen that prices of services. And the important thing is that even when things normalise these prices barely come down. I think this is the MRP effect. Once the maximum retail price goes up, it is very unlikely that even in case the costs which lead to this increase in MRP, come down, rarely does the MRP come down,” he said.