India WPI Rises the Most in Nearly 2 Years

India wholesale prices rose 3.55 percent year-on-year in July of 2016, following a 1.62 percent gain in June while markets expected a 2.55 percent rise. It was the 4th straight month of increase and the highest figure since August 2014, mainly due to a faster rise in prices of food and manufactured products.

In July, food prices increased by 11.82 percent from a year earlier, following a 8.18 percent rise in the preceding month. Among food prices, potatoes recorded the highest increase (+58.78 percent), followed by pulses (+35.76 percent), vegetables (+28.05 percent), fruits (+17.30 percent); egg, meat & fish (+7.49 percent), cereals (+7.03 percent), wheat (+6.90 percent) and rice (+4.08 percent). In contrast, prices declined for: onion (-36.29 percent).

Cost of manufactured products increased by 1.82 percent, as compared to a 1.17 percent rise in the previous month.

Petrol prices dropped by 10.30 percent year-on-year in July, following a 8.74 percent decline in June. In contrast, cost of diesel increased by 6.57 percent, as compared to a 1.13 percent rise in a month earlier.

On a monthly basis, wholesale prices grew 1.0 percent in July compared to a 1.4 percent rise in a month earlier.  

Office of the Economic Adviser l Rida Husna |
8/16/2016 8:10:06 AM