India WPI Rises at Faster Pace in December

Indian wholesale prices rose 3.39 percent year-on-year in December of 2016, following a 3.15 percent gain in November while markets expected a 3.50 percent rise. It was the ninth straight month of increase, mainly due to rising cost of manufactured products and petrol while prices of food fell for the first time since August 2015.

In December, food prices fell 0.70 percent from a year earlier, following a 1.54 percent  rise in the preceding month. Among food prices, onion recorded the largest drop (-37.20 percent), followed by vegetables (-33.11 percent). In contrast, prices went up for: potatoes (+26.42 percent), pulses (+18.12 percent), wheat (+12.82 percent), cereals (+7.49 percent), rice (+4.38 percent), milk (+4.11 percent); egg, meat & fish (+2.73 percent) and  fruits (+0.04 percent).

Cost of manufactured products increased by 3.67 percent, compared to a 3.20 percent rise in the previous month.

Petrol prices went up 8.52 percent year-on-year, following a 5.54 percent gain in November. Cost of diesel also increased by 20.25 percent,  compared to a 19.36 percent rise in a month earlier.

On a monthly basis, wholesale prices declined by 0.2 percent, compared to a 0.1 percent increase in November.

India WPI Rises at Faster Pace in December

Office of the Economic Adviser | Rida Husna |
1/16/2017 11:05:57 AM