India Inflation


India: Inflation continues to fall sharply

February 14, 2012

In January, the wholesale price index (WPI) ? India's preferred measure of inflation ? added 0.51% over the previous month. The figure contrasted the 0.32% drop observed in December but came in broadly in line with market expectations. Although the monthly price rise was broad-based, it mainly reflected a large increase in prices for primary articles. Despite the monthly increase, annual headline WPI inflation dropped from 7.5% in December to 6.6% in January, its lowest level since December 2009. Annual average wholesale price inflation also moderated, easing from 9.4% in December to 9.2% in January.


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