India Inflation February 2016

India

India: Inflation eases in February, while fall in wholesale prices stabilizes

March 14, 2016

Consumer prices in February decreased 0.32% over the previous month, which contrasted January’s 0.16% rise. The monthly decrease reflected lower prices for food and beverages compared to the previous month. Inflation eased in February, coming in at 5.2%. Inflation had hit the highest level since August 2014 in January, tallying 5.7%. February’s result came in below market analysts’ expectations of 5.6% inflation.

The wholesale price index (WPI) in February fell 0.97% over the previous month, which followed January’s 0.62% drop. February’s reading partly reflected falling prices for food as well as for fuel and power products. On an annual basis, wholesale prices fell 0.9% in February, which mirrored January’s result. However, the trend pointed up and annual average WPI inflation rose from minus 2.7% to minus 2.6%.

FocusEconomics Consensus Forecast panelists expect consumer price inflation to average 5.2% in FY 2016, which is unchanged from last month’s forecast. In FY 2017, the panel expects consumer price inflation to average 5.1%. Panelists expect wholesale price inflation of 1.9% in FY 2016, which is up 0.1 percentage points from last month’s forecast. In FY 2017, the panel expects wholesale price inflation to average 3.7%.


Author: Angela Bouzanis, Senior Economist

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India Inflation Chart


India Inflation February 2016

Note: Annual and monthly variation of wholesale price index (WPI) and annual variation of consumer price index (CPI) in %.
Source: Ministry of Commerce and Industry and FocusEconomics calculations.


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