India Wholesale Inflation At 11-Month Low Of 0.9% In June

Wholesale prices in India rose 0.9 percent year-on-year in June of 2017, compared to a 2.17 percent rise in May and below market estimates of a 1.6 percent rise. It was the lowest wholesale inflation since July of 2016, as cost of manufactured products and fuel went up at a slower pace and food prices fell further.

In June, cost increased at a slower pace for: manufactured products (2.27 percent from 2.55 percent in the prior month) and fuel and power (5.28 percent from 11.7 percent). In addition, prices of primary articles fell 3.86 percent (from -1.79 percent), mainly due to a 3.47 percent drop in cost of food (-2.27 percent in May), namely vegetables (-21.16 percent compared to -18.51 percent). 

On a monthly basis, wholesale prices decreased by 0.1 percent, after falling 0.4 percent in a month earlier.

In May 2017, the government  revised the base year to 2011-12 from 2004-05, aiming to align it with the base year of other indicators like the GDP and the industrial production index.

Office of the Economic Adviser | Rida Husna |
7/14/2017 8:34:09 AM