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Tuesday 17 May 2011

Impact of fuel price hike

Cooking gas has a weight in WPI 0.9% means 10% increase in prices increases inflation to 0.09%
Kerosene has weight in WPI 0.7 means 10% hike results in increase in inflation to 0.07%
similarly Diesel has weight in WPI 4.7% and Petrol has weight in WPI 1.1%
Thus diesel prices has a huge impact on inflation

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