India WPI Falls for 15th Straight Month

Indian wholesale prices fell by 0.90 percent year-on-year in January of 2016, as compared to a 0.73 percent drop in December and above market consensus. Prices of food eased while cost of petrol and manufactured declined at a slower pace.

Year-on-year, petrol prices dropped by 5.32 percent, following a 7.90 percent fall in the previous month and cost of diesel decreased by 12.76 percent, as compared to a 13.8 percent, decline in December.

Food prices increased by 6.02 percent, following a 8.17 percent rise in a month earlier. Among food prices, pulses recorded the highest increase (+44.91 percent), followed by vegetables (+12.52 percent); fibres (+7.77 percent); egg, meat & fish (+5.69 percent), onion (+5.51 percent); wheat (+3.19 percent); milk (+1.42 percent) and cereals (+1.24 percent). In contrast, prices declined for potatoes (-17.08 percent). fruits (-2.32 percent) and and rice (-1.38 percent).

In January, cost of manufactured products declined by 1.17 percent, as compared to a 1.36 percent fall in the previous month.

The wholesale inflation has been in a negative territory since November of 2014.
On a monthly basis, wholesale prices decreased by 1.0 percent, following a 0.1 percent rise in December.

India WPI Falls for 15th Straight Month

Office of the Economic Adviser l Rida Husna |
2/15/2016 7:55:45 AM