Wholesale Inflation Jumps To Nearly Five-Year High In June
India's wholesale price-based inflation jumped to its highest level in more than four years last month on rising fuel prices, surpassing street estimates.
Inflation, measured by the Wholesale Price Index, stood at 5.77 percent last month, according to a Ministry of Commerce and Industry release. A Bloomberg poll of economists had estimated it to be around 5.23 percent. June’s inflation figure was highest since December 2013 when it stood at 5.88 percent.
Rising prices are already a matter of concern for the Reserve Bank of India’s monetary policy committee which hiked interest rates by 25 basis points in June and said future moves will be determined by incoming data.
India’s retail prices rose at a slower than expected pace in June as food prices rose modestly. Core inflation, however, jumped more than expected suggesting that higher input costs are being passed on due to steady demand conditions.
Here are the key highlights:
- India June primary article prices rose 5.3 percent, year-on-year.
- May fuel, power, lighting prices rose 16.18 percent.
- Manufactured product prices rose 4.17 percent.
- Food articles prices rose 1.8 percent.
- April WPI revised to 3.62 percent from 3.18 percent.
Most economists expect at least another hike in 2018 as the economy shows signs of picking up and a weakening rupee pushes up the cost of imports led by oil.