India’s Wholesale Prices Ease Further In August
India’s wholesale price-based inflation eased for the second straight month as cheaper food items offset surging fuel prices.
The inflation, measured by the Wholesale Price Index, stood at 4.53 percent in August, according to a statement by the Ministry of Commerce and Industry. A Bloomberg poll of economists had estimated it to be around 4.62 percent.
India’s consumer price inflation last month was lower than expected as prices of vegetables and pulses remained in check even as fuel prices rose. The core inflation is running below the Reserve Bank’s monetary policy committee’s forecast of 4.6 percent in the July-September period.
The fall in inflation may complicate the task of the monetary policy committee, which may see the need to hike rates in response to a weaker rupee when it meets next month. The central bank had hiked interest rates for the second time by 25 basis points last month.
Here are the key highlights (Year-On-Year):
- Price of primary articles fell 0.15 percent.
- Price of food articles fell 4.04 percent.
- Fuel and power price rose 17.73 percent.
- Price of manufactured products rose 4.43 percent.
- Onion price fell 26.80 percent.
- Crude petroleum price rose 53.47 percent.