India WPI Deflation Eases in May

Indian wholesale prices fell 2.36 percent year-on-year in May of 2015, following a 2.65 percent drop in the previous month, as a decline in petrol prices eased while food cost slowed. The index has been in the negative territory since November 2014.

Year-on-year, petrol prices fell 11.29 percent, following a 18.44 percent drop in the previous month and cost of diesel decreased by 11.62 percent, following a 14.39 percent fall in April.

Food prices rose 3.80 percent, slowing from a 5.73 percent increase in April. Among food prices, pulses recorded the highest increase (+22.84 percent), followed by onion (+20.41 percent), fruits (+8.65 percent); milk (+6.85 percent); egg, meat & fish (+0.86 percent); wheat (+1.79 percent) and wheat (+2.79 percent). In contrast, prices fell for potato (-51.95 percent), minerals (-28.41 percent), fibres (-11.91 percent), vegetables (-5.54 percent),  non-food articles (-2.24 percent), oil seeds (-1.01 percent), rice (-1.77 percent) and cereals (-0.13 percent).

In May, cost of manufactured products declined by 0.64 percent from a 0.52 percent drop in the previous month.

On a monthly basis, wholesale prices increased 1 percent, following a  0.1 percent drop in April.

India WPI Deflation Eases in May

Office of the Economic Adviser | Rida Husna |
6/15/2015 9:08:18 AM