India Wholesale Inflation Slows to Near 2-Year Low of 2.45%

Wholesale prices in India rose by 2.45 percent year-on-year in May 2019, easing from a 3.07 percent gain in the previous month and below market expectations of 3.1 percent. It was the lowest wholesale inflation rate since July 2017, amid a slowdown in cost of food, fuel and manufactured products.

In May, cost of primary articles rose by 6.16 percent, slower than a 6.5 percent increase in April, mainly due to prices of food articles (6.99 percent vs 7.37 percent in April), namely vegetables (33.15 percent vs 40.65 percent), cereals (7.9 percent vs 8.43 percent), wheat (6.35 percent vs 7.52 percent), and milk (1.13 percent vs 1.49 percent). In addition, prices fell for potato (-23.36 percent vs 17.15 percent), and fruits (-3.51 percent vs -6.88 percent).

Also, cost of fuel & power increased much softer (0.98 percent vs 3.84 percent). Additionally, prices of manufactured products eased to 1.28 percent from 1.72 percent, of which chemical & chemical products (1.96 percent vs 2.92 percent), textiles (3.46 percent vs 3.92 percent), rubber and plastics (0.65 percent vs 1.66 percent), and wood and of products of wood and cork (0.67 percent vs 1.21 percent); while fell for basic metals (-2.23 percent vs 0.18 percent). 

On a monthly basis, wholesale prices increased by 0.2 percent in May, after a 0.8 percent gain in April.

India Wholesale Inflation Slows to Near 2-Year Low of 2.45%

Office of the Economic Advisor l Rida Husna |
6/14/2019 10:24:33 AM