India WPI Rises More than Expected in July

Wholesale prices in India rose 1.88 percent year-on-year in July of 2017, compared to a 0.9 percent rise in the prior month while market estimated a 1.3 percent rise. A surge in food prices offset a slowdown in cost of manufactured products and fuel.

In July, cost of primary articles increased by 0.46 percent (from -3.86 percent in June), mainly due to a 2.15 percent rise in cost of food (from -3.48 percent in a month earlier), namely vegetables (21.95 percent compared to -21.16 percent). Meantime, cost went up less for: manufactured products (2.18 percent from 2.27 percent) and fuel and power (4.37 percent from  5.28 percent).

On a monthly basis, wholesale prices increased by 1.1 percent, after declining 0.1 percent in a month earlier.

In May 2017, the government  revised the base year to 2011-12 from 2004-05, aiming to align it with the base year of other indicators like the GDP and the industrial production index.

India WPI Rises More than Expected in July

Office of the Economic Adviser l Rida Husna |
8/14/2017 7:00:38 AM