India WPI Deflation Deepens in March

Indian wholesale prices fell 2.33 percent year-on-year in March of 2015, following a 2.06 percent drop in the previous month, as petrol prices declined while food cost slowed. The figure came far below market forecasts and is the deepest decline since November of 1976.

Year-on-year, petrol prices fell 17.70 percent, following a 21.35 percent drop in the previous month and cost of diesel decreased by 12.11 percent, following a 16.62 percent fall in February.

Food prices rose 6.31 percent, slowing from a 7.74 percent increase in February. Among food prices, onion recorded the highest increase (36.49 percent), followed by pulses (+13.22 percent), fruits (12.60 percent), vegetables (+9.68 percent), milk (+7.48 percent) and food articles (+6.31 percent). In contrast, prices fell for potato (-20.66 percent), fibres (-19.29 percent), non-food articles (-7.12 percent) and oil seeds (-1.35 percent).

In March, cost of manufactured products declined by 0.19 percent from a 0.33 percent increase in the previous month.

India WPI Deflation Deepens in March

Office of the Economic Adviser l Rida Husna l
4/15/2015 9:59:00 AM