India WPI Rises The Most In 30 Months In January

Indian wholesale prices rose 5.25 percent year-on-year in January of 2017, following a 3.39 percent gain in December while markets expected a 3.89 percent rise. It was the tenth straight month of increase and the highest since July 2014, driven by a faster increase in cost of manufactured product and a surge in cost of petrol while prices of food fell less than in the prior month.

In January, food prices fell 0.56 percent from a year earlier, following a 0.70 percent drop in the preceding month. Among food prices, vegetables recorded the largest drop (-32.32 percent), followed by onions (-28.86 percent) and potatoes (-0.20 percent). In contrast, cost increased for: wheat (+9.49 percent), pulses (6.21 percent), cereals (5.94 percent), milk (4.19 percent); egg, meat & fish (3.59 percent), fruits (3.58 percent) and rice (2.97 percent).

Cost of manufactured products increased by 3.99 percent, compared to a 3.67 percent rise in the previous month.

Petrol prices went up 18.14 percent year-on-year, following a 8.52 percent gain in December. Cost of diesel also increased by 31.10 percent,  compared to a 20.25 percent rise in a month earlier.

On a monthly basis, wholesale prices went up 1.0 percent, compared to a 0.2 percent fall in December.

India WPI Rises The Most In 30 Months In January

Office of the Economic Adviser l Rida Husna |
2/14/2017 6:56:09 AM