India WPI Drops for 16th Straight Month


Indian wholesale prices fell by 0.91 percent year-on-year in February of 2016, as compared to a 0.90 percent drop in January and missing market consensus of a 0.27 percent fall. Prices of food eased further while cost of petrol and manufactured declined at a slower pace.

Year-on-year, petrol prices dropped by 1.03 percent, following a 5.32 percent fall in the previous month and cost of diesel decreased by 7.75 percent, as compared to a 12.76 percent, decline in January.

Food prices increased by 3.35 percent, following a 6.02 percent rise in a month earlier. Among food prices, pulses recorded the highest increase (+38.84 percent), followed by fibres (+9.54 percent); egg, meat & fish (+3.47 percent), wheat (+2.78 percent); milk (+1.74 percent) and cereals (+1.11 percent). In contrast, prices declined for potatoes (-6.28 percent), vegetables (-3.34 percent),  fruits (-1.95 percent) and and rice (-1.63 percent).

In February, cost of manufactured products declined by 0.58 percent, as compared to a 1.17 percent fall in the previous month.

The wholesale inflation has been in a negative territory since November of 2014.

On a monthly basis, wholesale prices decreased by 1.0 percent, the same as in the previous month.

Office of the Economic Adviser l Rida Husna | rida@tradingeconomics.com
3/14/2016 7:19:33 AM