India Wholesale Inflation Rises to 3-Month High

India's annual wholesale price inflation accelerated to 3.18 percent year-on-year in March 2019 from 2.93 percent in the previous month and in line with market expectations. It was the highest wholesale inflation rate since December, as prices rose faster for food and fuel products.

Wholesale food prices increased 3.89 percent year-on-year in March, faster than 3.29 percent a month earlier, boosted by vegetables (28.13 percent vs 6.82 percent); cereals (8.92 percent vs 9.76 percent); wheat (10.13 percent vs 12.29 percent); pulses (10.63 percent vs 10.88 percent); and milk (1.78 percent vs 1.64 percent). Potato inflation, however, slowed sharply to 1.30 percent from 23.40 percent in February.

Fuel & power costs went up 5.41 percent in March, much faster than 2.23 percent in February.

Meanwhile, manufactured products inflation eased to 2.16 percent from 2.25 percent, as prices rose less for basic metals (1.28 percent vs 1.56 percent), chemical & chemical products (3.64 percent vs 3.82 percent) and textiles (3.94 percent vs 4.57 percent). 

On a monthly basis, wholesale prices increased 0.42 percent in March, following a 0.25 percent gain in February.

India Wholesale Inflation Rises to 3-Month High

Office of the Economic Adviser | Rida Husna |
4/15/2019 9:34:45 AM