[Anonymous]

NINJA Question –

Which of these is a reliable early predictor of future inflation?

The answer is: Wholesale Price Index

Now my question regarding this, is i understand the logic of if wholesale prices index increases, then the passed on costs will increase consumer prices….

However, wouldn’t this still be a lagging indicator since the wholesale prices rose, as a result of something, in this case inflation? I mean, had the inflation, not already occurred, then the wholesale price index wouldn’t have risen, and therefore it could not be an early (leading) indicator????

[Anonymous]

bump???

[Author]

Replies