Every category in food items, barring milk, saw moderation in inflation or continued price fall
Annual wholesale price inflation last month slowed to 2.84 per cent from a year earlier, from a provisional 3.58 per cent rise in December
While vegetable prices continue to soar, 56.46 per cent in December, pulse prices continued to contract
Wholesale price index (WPI)-based inflation was at a six-month high of 3.59 per cent in October, from 2.6 per cent the previous month. As consumer price index (CPI) inflation rose similarly (to 3.58 per cent, a seven-month high) in the month, this is likely to be a factor if the Reserve Bank of India decides not to cut its policy rate at next month's review to spur economic growth. Food inflation, led by onions and tomatoes and in fuels, pushed the WPI inflation; that in manufactured products showed a decline. This led to core inflation (manufactured items sans food products) remaining stable at 2.8 per cent. Inflation was higher than October's only in April (3.85 per cent) in the financial year so far. Food inflation more than doubled to 4.3 per cent in October. For vegetables, at 36.61 per cent last month as against 15.48 per cent in September.In the case of onions, inflation surged to 127.04 per cent, while tomatoes saw it jumping to 97 per cent. However, pulses continued to see .
A moderation in WPI inflation in the coming months is likely owing to falling vegetable prices and favourable base effects
Wholesale food prices in July rose 2.12% on year, compared with a 1.25% fall a month earlier
June WPI at 0.90%, down from 2.17 % in May, fuel inflation continues to decline for 5th month
As food prices eased, WPI decelerated from 2.17% in May to 0.90% in June
The wholesale price index (WPI) based inflation was 3.85 per cent in the previous month
May WPI at 2.17 %, down from 3.85 % in May; fuel inflation continues to decline for 4th month
WPI inflation for April is at 3.9%, which is 144 (bps) lower than the March inflation rate
The fall in WPI inflation in March was led by a bigger slowdown in fuel inflation
Govt revised the base year for calculating macroeconomic indicators to 2011-12
The wholesale price index (WPI)-based inflation declined by 0.85 percentage points to 5.7 per cent in March over 6.5 per cent in the previous month, even as food part of it rose during the period. Going forward, particularly from July, the inflation trajectory will be decided by the behaviour of monsoon and expectations built on that to the large extent. Indian Meteorological Department is slated to provide first prediction of the monsoon for 2017 on Tuesday. The private weather forecaster SkyMet has predicted slightly below normal rains. Some economists believe that inflation, particularly food part, faces upside risks which would force the Reserve Bank of India to go for continued pause so far as the repo rate is concerned. The movement of WPI inflation was in contrast to the CPI inflation over the same period. Data released last week showed that retail inflation touched a five-month high of 3.81 per cent in March on costlier food items. Food items have higher weight of over 45 ..
Last month, wholesale food prices rose 3.12% y-o-y, compared with provisional 2.69% rise in February
The data justifies the Reserve Bank of India's caution on loose monetary stance
WPI-based inflation rose to a 30-month high of 5.2% in January from 3.4% in December
Wholesale inflation rose to a two-and-a-half-year high of 5.2 per cent in January
High fuel inflation pushes up index as food prices keep on falling
In November, prices rose a provisional 3.15 percent