India WPI Inflation Turns Negative

Indian wholesale prices dropped 0.39 percent year-on-year in January of 2015, following a 0.11 percent increase in the previous month, as petrol prices declined. It is the first negative figure since June of 2009.

Year-on-year, petrol prices fell 17.08 percent, following a 11.96 percent drop in the previous month and cost of diesel decreased by 10.41 percent, following a 6.31 percent fall in December.

Food prices rose 8.0 percent, accelerating from a 5.2 percent increase in December. Among food prices, vegetables recorded the highest increase (19.74 percent), followed by fruits (17.19 percent) and milk (+9.13 percent). In contrast, prices fell for minerals (-13.75 percent), non-food articles (-4.07 percent), onion (-1.90 percent)  and wheat (-1.63 percent).

In January, cost of manufactured products increased 1.05 percent, down from 1.57 percent in the previous month.

On a monthly basis, wholesale prices declined 0.8 percent, following a 0.94 percent drop in December.

India WPI Inflation Turns Negative

Office of Economic Adviser l Rida Husna l
2/16/2015 2:46:57 PM