In October, the consumer price index for industrial workers (CPI-IW) jumped 1.12% over the previous month, which doubled the 0.56% increase tallied in September. Despite the monthly spike, annual consumer price inflation inched down from 9.8% in September to 9.7% in October. Meanwhile, the more recent and comprehensive wholesale price index (WPI) showed price pressures easing, giving the Central Bank room to pause the tightening cycle. In November, the WPI added 0.42% over the previous month, which came in above the 0.14% increase observed in October and was virtually in line with market expectations. Annual wholesale inflation fell from 8.6% in October to 7.5% in November, which represented the lowest level of inflation since December 2009. Nonetheless, the trend remained flat, with annual average wholesale price inflation remaining unchanged at October's 8.6%, after 12 consecutive months of increases. The monthly wholesale price increase was mainly the result of higher prices for non-food primary articles (+3.9% month-on-month), which include raw materials such as jute, silk, cotton and rubber. Food price inflation eased somewhat, with food prices rising a subdued 0.1% in November after an increase of 0.6% rise in October. The Reserve Bank of India expects wholesale price inflation to moderate to 5.5% (recently revised from the previous 6.0% estimate) by the end of the current fiscal year, which concludes in March 2011.
Inflation falls to lowest level this year
December 14, 2010
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India Economic News
October 17, 2016
Recently-released data related to India’s external sector showed that the trade deficit totaled USD 8.3 billion in September, which was a smaller shortfall than the USD 10.2 billion gap recorded in September 2015 (August 2016: USD 7.7 billion deficit).
October 15, 2016
In September, consumer prices fell 0.23% from the previous month, which followed August’s flat growth.
October 12, 2016
The fall in industrial production moderated in August, after recording the largest contraction since November 2015 in July.
October 5, 2016
Activity in India’s manufacturing sector lost steam in September.
October 4, 2016
The newly facelifted Reserve Bank of India (RBI) decided to ease monetary policy at a scheduled meeting on 4 October, cutting the repurchase rate from 6.50% to 6.25%—an over five-year low.