India WPI Rises for 1st Time in 18 Months

Indian wholesale prices unexpectedly rose 0.34 percent year-on-year in April of 2016, following a 0.85 percent drop in March and market consensus of a 0.2 percent fall. It is the first increase since November 2014 as prices rose for food and cost of manufactured products while cost of petrol declined at a slower pace.

In April, food prices increased by 4.23 percent from a year earlier, following a 3.73 percent rise in the preceding month. Among food prices, pulses recorded the highest increase (+36.36 percent), followed by potatoes (+35.45 percent); egg, meat & fish (+3.34 percent), milk (+2.83 percent), cereals (+2.64 percent), wheat (+2.22 percent), vegetables (+2.21 percent) and rice (+0.47 percent). In contrast, prices declined for: onion (-18.18 percent), and fruits (-2.38 percent).

Cost of manufactured products increased by 0.71 percent, as compared to a 0.13 percent fall in the previous month.

Petrol prices dropped by 4.18 percent year-on-year, following a  9.87 percent decline in March and cost of diesel decreased by 3.94 percent, as compared to a 9.79 percent decline in March.

On a monthly basis, wholesale prices rose 1.4 percent after gaining 0.3 percent in the previous month.

India WPI Rises for 1st Time in 18 Months

Office of the Economic Adviserl Rida Husna |
5/16/2016 11:27:06 AM