India WPI Rises The Most In Over 3 Years


Indian wholesale prices rose 6.55 percent year-on-year in February of 2017, following a 5.25 percent gain in January while markets expected a 5.90 percent rise. It was the eleventh straight month of increase and the highest since November 2013, driven by a surge in prices of food while cost of manufactured products and petrol rose further.

In February, food prices went up 2.69 percent from a year earlier, following a 0.56 percent drop in the preceding month. Among food prices, wheat recorded the largest increase (8.36 percent), followed by fruits (7.14 percent), cereals (6.09 percent), rice (4.40 percent) and milk (3.93 percent) and egg, meat & fish (3.79 percent). In contrast, cost fell for: onions (-18.85 percent), potatoes (-8.84 percent), vegetables (-8.05 percent) and pulses (-0.79 percent). 

Cost of manufactured products increased by 3.66 percent, compared to a 3.99 percent rise in the previous month.

Petrol prices rose 16.72 percent year-on-year, following a 18.14 percent gain in January. Cost of diesel also increased by 33.14 percent,  compared to a 31.10 percent rise in a month earlier.

 On a monthly basis, wholesale prices went up 0.5 percent, compared to a 1.0 percent rise in the prior month.

Office of the Economic Adviser | Rida Husna | rida@tradingeconomics.com
3/14/2017 11:29:58 AM