India WPI Rises More than Expected in July

Wholesale prices in India rose 1.88 percent year-on-year in July of 2017, compared to a 0.9 percent rise in the prior month while market estimated a 1.3 percent rise. A surge in food prices offset a slowdown in cost of manufactured products and fuel.

In July, cost of primary articles increased by 0.46 percent (from -3.86 percent in June), mainly due to a 2.15 percent rise in cost of food (from -3.48 percent in a month earlier), namely vegetables (21.95 percent compared to -21.16 percent). Meantime, cost went up less for: manufactured products (2.18 percent from 2.27 percent) and fuel and power (4.37 percent from  5.28 percent).

On a monthly basis, wholesale prices increased by 1.1 percent, after declining 0.1 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 l Rida Husna |
8/14/2017 7:00:38 AM