India’s annual rate of inflation based on wholesale prices Index or WPI eased to 4.64% in November from 5.28% in October, according to official data showed on Friday.
However, on a year-on-year basis, the WPI data compiled by the Ministry of Commerce & Industry was larger than the rise of 4.02% reported for the equivalent period of 2017.
The data further indicate that the Build-up inflation rate in the financial year thus far was 4.73% matched up to a build up rate of 2.83% in the corresponding period of the previous year.
How inflation affects in Stock market?: When inflation enhances, purchasing power falls, and each dollar can buy smaller amount of goods and services. The price of dividend-paying stocks is influenced or impacted by inflation same as the way bonds are affected by interest rates. When inflation rises, income stock prices generally fall.