India Wholesale Inflation Slows for 3rd Straight Month

In February of 2014, Indian annual wholesale price index decelerated to 4.68 percent, reaching the lowest rate in nine months, as food and fuel prices moderated. A year ago, the inflation was recorded at 7.28 percent.
Ministry of Commerce and Industry | Joana Taborda | 3/14/2014 8:58:58 AM
Year-on-year, food prices slowed to 8.1 percent from 8.8 percent in January mainly due to a deceleration of vegetable prices (3.99 percent from 16.6 percent in the previous month). Cost of onions fell 20 percent on the year, but milk and food prices accelerated to 8.45 percent and 9.92 percent, respectively. 

Cost of non-food articles rose at a fastest 5.13 percent year-on-year; prices of manufactured goods were unchanged at 2.76 percent and cost of fuel and power slowed by 1.28 percentage point to 8.75 percent. 

On a monthly basis, prices were flat. The index for food declined by 0.3 percent due to lower price of poultry chicken, eggs, gram and fruits  and vegetables, maize and barley and ragi, tea, bajra and arhar.

While prices of minerals and fuel and power declined by 0.2 percent and 0.1 percent, respectively, cost of non-food and manufactured products increased 0.6 percent and 0.1 percent, respectively. 

Core WPI inflation, which strips out prices of volatile food and fuel, accelerated to 3.15 percent from 3 percent in January.

India Wholesale Inflation Slows for 3rd Straight Month