India WPI Drops for 14th Straight Month in December


Indian wholesale prices fell by 0.73 percent year-on-year in December of 2015, as compared to a 1.99 percent drop in November and above market consensus. Prices of food rose higher than in the previous month while cost of petrol and manufactured declined at a slower pace.

Year-on-year, petrol prices dropped by 7.90 percent, following a 9.30 percent fall in the previous month and cost of diesel decreased by 13.8 percent, as compared to a 16.83 percent, decline in November.

Food prices increased by 8.17 percent, following a 5.20 percent rise in a month earlier. Among food prices, pulses recorded the highest increase (+55.64 percent), followed by onion (+25.98 percent); vegetables (+20.56 percent), oil seeds (+8.03 percent); egg, meat & fish (+5.03 percent), wheat (+4.53 percent), fibres (+2.36 percent), milk (+1.78 percent), cereals (+1.63 percent) and fruits (+0.76 percent). In contrast, prices declined for potatoes (-34.99 percent) and rice (-1.25 percent).

In December, cost of manufactured products declined by 1.36 percent, as compared to a 1.42 percent fall in the previous month.

The wholesale inflation has been in negative territory since November of 2014.

On a monthly basis, wholesale prices increased by 0.1 percent, slowing from a 0.5 percent rise in November.

India WPI Drops for 14th Straight Month in December


Office of the Economic Adviser l Rida Husna | rida@tradingeconomics.com
1/14/2016 6:49:29 AM