India WPI Rises for 2nd Month in May

Indian wholesale prices rose 0.79 percent year-on-year in May of 2016, following a 0.34 percent gain in April and higher than market consensus of a 0.42 percent increase. It was the 2nd straight month of rise as prices of food and manufactured products went up at a faster pace while cost of petrol dropped further.

In May, food prices increased by 7.88 percent from a year earlier, following a 4.23 percent rise in the preceding month. Among food prices, potatoes recorded the highest increase (+60.01 percent), followed by pulses (+35.56 percent), vegetables (+12.94 percent); egg, meat & fish (+9.75 percent), cereals (+4.60 percent), wheat (+3.85 percent), fruits (+3.80 percent) and rice (+2.22 percent). In contrast, prices declined for: onion (-21.70 percent).

Cost of manufactured products increased by 0.91 percent, as compared to a 0.71 percent rise in the previous month.

Petrol prices dropped by 10.86 percent year-on-year in May, following a 4.18 percent decline in April and cost of diesel decreased by 5.01 percent, as compared to a 3.94 percent decline in a month earlier.

On a monthly basis, wholesale prices rose 1.4 percent in May, the same pace as in April. 

India WPI Rises for 2nd Month in May

Office of the Economic Adviser l Rida Husna |
6/14/2016 8:18:58 AM