India Wholesale Inflation Rises More than Expected

Wholesale prices in India rose by 2.93 percent year-on-year in February 2019, accelerating from a 2.76 percent rise in the prior month. The latest reading was above market estimates of 2.88 percent, mainly driven by a faster rise in cost of food and fuel.

In February 2019, cost of primary articles rose 4.84 percent, faster than a 3.54 percent in a month earlier, namely cereals (9.76 percent vs 7.95 percent); wheat (12.29 percent vs 9.94 percent) and pulses or grain legumes (10.88 percent vs 7.55 percent). In addition, prices of food articles went up by 4.28 percent in February, after increasing 2.34 percent in January. Also, cost of fuel increased by 2.23 percent, following a 1.85 percent gain in a month earlier.

Meanwhile, cost of manufactured products advanced 2.25 percent, slowing from a 2.61 percent rise in January, as prices rose less for basic metals (1.56 percent vs 3.57 percent), chemical & chemical products (3.82 percent vs 4.47 percent) and textiles (4.57 percent vs 4.85 percent). 

On a monthly basis, wholesale prices went up by 0.25 percent in February, rebounding from a 0.75 percent decrease in the prior month.

India Wholesale Inflation Rises More than Expected

Office of the Economic Advisor l Rida Husna |
3/14/2019 9:14:04 AM