Indian Wholesale Inflation at 4-Month High of 3.24% in August

Wholesale prices in India rose 3.24 percent year-on-year in August of 2017, following a 1.88 percent increase in the prior month and above market estimates a 3.0 percent gain. It was the highest wholesale inflation since April, due to a surge in prices of food and fuel.

In August, cost of primary articles jumped 2.66 percent (from 0.46 percent in July), mainly due to a 5.75 percent rise in cost of food (from 2.15 percent in a month earlier), namely vegetables (44.91 percent compared to 21.95 percent). In addition, cost increased more for: manufactured products (2.45 percent from 2.18 percent) and fuel and power (9.99 percent from 4.37 percent).

On a monthly basis, wholesale prices increased by 0.8 percent, after a 1.1 percent gain 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 |
9/14/2017 10:08:58 AM