Wholesale prices in India increased 2.59 percent year-on-year in December 2019, compared to a 0.58 percent advance in the previous month and market expectations of a 2.15 percent rise. That was the highest rate since May, as food inflation accelerated to 13.24 percent from 11.08 percent in a month ago, led by a 455.83 percent jump in onion prices. Meanwhile, there were declines in prices of both fuel (-1.46 percent vs -7.32 percent) and manufactured products (-0.25 percent vs -0.84 percent). On a monthly basis, wholesale prices went up by 0.41 percent in December, after a 0.08 percent gain in November. Producer Prices Change in India averaged 6.96 percent from 1969 until 2019, reaching an all time high of 34.68 percent in September of 1974 and a record low of -11.31 percent in May of 1976. source: Office of the Economic Advisor, India
Producer Prices Change in India is expected to be 1.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in India to stand at 3.90 in 12 months time. In the long-term, the India Wholesale Price Index Change is projected to trend around 4.50 percent in 2020, according to our econometric models.