India Wholesale Inflation Unchanged at Over 2-Year Low

Wholesale prices in India rose by 1.08 percent year-on-year in August 2019, the same pace as in the previous month while markets had estimated 1.04 percent. It remained the lowest wholesale inflation rate since June 2017.

Cost of manufacturing, accounting for about 64 percent of the index, was flat in August, after a 0.34 percent rise in July. Prices of textiles were unchanged (vs 1.36 percent in July), while cost fell for chemical & chemical products (-0.42 percent vs 0.42 percent). In addition, prices dropped further for rubber and plastics (-1.19 percent vs -0.27 percent), and basic metals (-6.09 percent vs -4.28 percent). Also, cost of wood and products of wood and cork slowed (0.6 percent vs 1.36 percent).

Prices of primary articles advanced 6.43 percent, faster than a 5.03 percent gain in a month earlier, amid a faster rise in cost of food articles (7.67 percent vs 6.15 percent), in particular vegetables (13.67 percent vs 10.67 percent) and milk (1.18 percent vs 0.28 percent). Meantime, potato prices continued to drop (-21.28 percent vs -23.63 percent).

Meanwhile, wholesale prices of fuel products, including petrol, diesel and cooking gas, fell 4 percent, after declining 3.64 percent in the previous month.

On a monthly basis, wholesale prices rose by 0.2 percent in August, the same as in July.

India Wholesale Inflation Unchanged at Over 2-Year Low

Office of the Economic Advisor l Rida Husna |
9/16/2019 8:58:15 AM