India Wholesale Inflation Slows to 10-Month Low

Wholesale prices in India rose by 2.76 percent year-on-year in January 2019, slowing from a 3.80 percent rise in the prior month and well below market estimates of 3.65 percent. It was the lowest wholesale inflation since March 2018, mainly due to a noticeable slowdown in cost of fuel and manufactured products.

In January 2019, cost of fuel increased by 1.85 percent, far slower than a 8.38 percent rise in December. Also, cost of manufactured products rose 2.61 percent, slowing from a 3.59 percent gain in a month earlier, as prices went up less for: basic metals (3.57 percent vs 9.33 percent), chemical & chemical products (4.47 percent vs 6.01 percent) and textiles (4.85 percent vs 5.30 percent). 

Meanwhile, cost of primary articles rose 3.54 percent, faster than a 2.28 percent in a month earlier, namely for cereals (7.95 percent vs 7.59 percent); wheat (9.94 percent vs 9.61 percent), pulses or grain legumes (7.55 percent vs 2.11 percent) and minerals (26.48 percent vs 14.89 percent). In addition, prices rebounded for food articles (2.34 percent vs -0.07 percent).

On a monthly basis, wholesale prices went down by 0.70 percent, following a 1.40 percent decrease in December.

India Wholesale Inflation Slows to 10-Month Low

Office of the Economic Advisor l Rida Husna |
2/14/2019 11:39:58 AM