India Wholesale Inflation Slows to 8-Month Low

In January of 2014, Indian annual WPI eased for the second straight month to 5.05 percent, the lowest rate since May of 2013, as food prices slowed and mineral cost fell.
Ministry of Commerce and Industry | Joana Taborda | 2/14/2014 11:13:36 AM
Year-on-year, food prices rose 8.8 percent, down from 13.7 percent recorded in December of 2013. Although prices of potatoes, vegetables and rice recorded the highest growth rates (21.73 percent, 16.6 percent and 13.72 percent, respectively), they rose at a slower pace when compared with December (21.7 percent, 57 percent and 13.6 percent, respectively).

Mineral prices fell 0.2 percent and cost of liquefied petroleum gas dropped 1.42 percent. Cost of manufactured products rose slightly in January to an annual 2.7 percent (2.6 percent in the previous month). 

On a monthly basis, prices fell 0.17 percent. The index for food declined by 2.7 percent due to lower price of fruits and vegetables (11 percent), maize (3 percent), ragi (2 percent) and gram, coffee, arhar and tea (1 percent each). 

The index for non-food articles rose by 0.1 percent due to higher price of guar seed (8 percent), raw cotton (6 percent), copra (coconut) (4 percent), mesta (3 percent), castor seed (2 percent) and fodder, linseed and raw jute (1 percent each). 

Mineral prices declined by 0.4 percent due to lower cost of barytes (3 percent) and crude petroleum (1 percent). However, the price of copper ore (5 percent), steatite (4 percent), zinc concentrate (3 percent) and chromite (2 percent) moved up.  

Fuel prices rose 0.7 percent and cost of manufactured goods increased 0.5 percent.

India Wholesale Inflation Slows to 8-Month Low