India WPI Rises More Than Expected in June

Indian wholesale prices rose 1.62 percent year-on-year in June of 2016, following a 0.79 percent gain in May and higher than market consensus of a 1.19 percent increase. It was the 3rd straight month of gain as prices of food and manufactured products went up at a faster pace while cost of petrol fell less than in the preceding month.

In June, food prices increased by 8.18 percent from a year earlier, following a 7.88 percent rise in the preceding month. Among food prices, potatoes recorded the highest increase (+64.48 percent), followed by pulses (+26.61 percent), vegetables (+16.91 percent); egg, meat & fish (+6.67 percent), wheat (+6.83 percent) cereals (+6.32 percent), fruits (+5.97 percent) and rice (+3.37 percent). In contrast, prices declined for: onion (-28.60 percent).

Cost of manufactured products increased by 1.17 percent, as compared to a 0.91 percent rise in the previous month.

Petrol prices dropped by 8.74 percent year-on-year in June, following a 10.86 percent decline in May. In contrast, cost of diesel increased by 1.13 percent, as compared to a 5.01 percent decline in a month earlier.

On a monthly basis, wholesale prices rose 1.4 percent in June, the same pace as in the previous two months.

India WPI Rises More Than Expected in June

Office of the Economic Adviser l Rida Husna |
7/14/2016 12:54:42 PM