India WPI Rises Less Than Expected in August

India wholesale prices rose 3.74 percent year-on-year in August of 2016, following a 3.55 percent gain in July while markets expected a 4.01 percent rise. It was the fifth straight month of increase and the highest figure since August 2014. While cost of manufactured products rose at a faster pace, prices of food slowed and cost of petrol fell less than in the preceding month.

In August, food prices increased by 8.23 percent from a year earlier, following a 11.82 percent rise in the preceding month. Among food prices, potatoes recorded the highest increase (+66.72 percent), followed by pulses (+34.55 percent), fruits (+13.91 percent); egg, meat & fish (+8.75 percent), cereals (+7.23 percent), wheat (+7.27 percent), rice (+4.76 percent) and vegetables (+0.17 percent). In contrast, prices declined for: onion (-64.19 percent).

Cost of manufactured products increased by 2.42 percent, compared to a 1.82 percent rise in the previous month.

Petrol prices dropped by 8.65 percent year-on-year, following a 10.30 percent decline in July. In contrast, cost of diesel increased by 12.15 percent, as compared to a 6.57 percent rise in a month earlier.

On a monthly basis, wholesale prices decreased by 0.4 percent, following a 1.0 percent increase in a month earlier.

India WPI Rises Less Than Expected in August

Office of the Economic Adviserl Rida Husna |
9/14/2016 7:44:54 AM