India WPI Drops for 17th Straight Month

Indian wholesale prices fell by 0.85 percent year-on-year in March of 2016, as compared to a 0.91 percent drop in February and missing market consensus of a 0.77 percent fall. Prices of food rose at a faster pace while cost of petrol declined further and cost of manufactured dropped at a slower pace.
Office of the Economic Adviser l Rida Husna | 4/18/2016 11:15:59 AM
Year-on-year, petrol prices dropped by 9.87 percent, following a 1.03 percent fall in the previous month and cost of diesel decreased by 9.79 percent, as compared to a 7.75 percent decline in February.

Food prices increased by 3.73 percent, following a 3.35 percent rise in a month earlier. Among food prices, pulses recorded the highest increase (+34.45 percent), followed by fibres (+6.67 percent); egg, meat & fish (+3.69 percent), wheat (+3.02 percent); milk (+2.67 percent), cereals (+2.47 percent) and rice (+0.6 percent). In contrast, prices declined for potatoes (-17.65 percent), vegetables (-2.26 percent) and fruits (-2.13 percent).

In March, cost of manufactured products declined by 0.13 percent, as compared to a 0.58 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 rose 0.3 percent after declining 1.0 percent in the previous month.

India WPI Drops for 17th Straight Month