India’s WPI Inflation Rises For The First Time In Five Months
Wholesale inflation rose for the first time since March, led by primary articles and manufactured products.
Wholesale inflation in India inched up for the first time since March as prices of primary articles and manufactured products increased.
Inflation as measured by the wholesale price index rose to 0.16% in August compared with a contraction of 0.58% in July, according to data released by the Ministry of Commerce and Industry on Monday. A Bloomberg poll of economists had pegged the contraction at 0.31%.
Core WPI, too, is now back in inflationary territory after 13 straight months of deflation, according to Rahul Bajoria, chief India economist at Barclays. While the large gap between WPI and CPI persists over the medium term, the moderate rise in wholesale prices bodes well for the outlook for CPI inflation as the gradual reopening of the economy and the restoration of supply chain logistics should ensure that lower input costs are transferred to end-consumers, said Bajoria.
Inflation Internals
Primary articles inflation rose 1.6% in August compared to an increase of 0.63% in July.
Prices of food articles rose 3.84% in August after growing 4.08% last month.
Prices of non-food articles contracted 1.46% after contracting 3.57% in July.
Fuel and power index contracted 9.68% against a fall of 9.84% in July.
Manufactured products inflation rose 1.27% compared to an increase of 0.51% in July.
The data for retail inflation is due later in the evening.