India WPI Deflation Deepens in August

Indian wholesale prices fell 4.95 percent year-on-year in August of 2015, following a 4.05 percent drop in the previous month as cost of manufactured products and diesel declined more than in July. The wholesale inflation has been in negative territory since November of 2014.

Year-on-year, petrol prices fell 13.26 percent, following a 13.33 percent decline in the previous month and cost of diesel decreased by 24.54 percent, following a 16.75 percent fall in July.

Food prices declined 1.13 percent, following a  1.16 percent fall in July. Among food prices, vegetables dropped the most (-51.71 percent), fibres (-9.72 percent), rice (-3.48 percent), oil seeds (-2.52 percent), cereals (-1.65 percent), fruits (-1.34 percent). In contrast, onion recorded the highest increase (+65.29 percent), followed by pulses (+36.40 percent); egg, meat & fish (+3.30 percent), milk (+2.08 percent) and wheat (+2.05 percent).

In August, cost of manufactured products declined by 1.92 percent, as compared to a 1.47 percent fall in the previous month.

On a monthly basis, wholesale prices declined 0.5 percent, following a 0.6 percent decline in July.

India WPI Deflation Deepens in August

Office of the Economic Adviser l Rida Husna |
9/14/2015 12:44:40 PM