India: Inflation eases while wholesale price inflation rises in December
January 16, 2017
In December, consumer prices in India fell 0.61% from the previous month, which followed November’s 0.15% decrease. The monthly fall chiefly reflected lower prices for food and beverages. Inflation continued to fall in December, declining from November’s 3.6% to an over two-year low of 3.4%. As a result, inflation is slightly below the center of the Central Bank’s target of 4.0% plus/minus 2.0 percentage points.
The wholesale price index (WPI) in December fell 0.16% from the previous month, after decreasing 0.27% in November. The fall in the index was driven by lower prices for food articles and other primary products. Wholesale price inflation rose to 3.4% in December from 3.2% in November. The trend pointed up and annual average wholesale inflation rose to 2.0% in December from 1.6% in November.