India: Inflation falls to lowest level in nearly three years
August 9, 2012
In July, the wholesale price index (WPI) India's preferred measure of inflation added 0.37% over the last month, which was above the 0.18% rise observed in June. The monthly figure mainly reflected how an increase in prices for primary articles and manufactured products was partially offset by lower prices for fuel and power. As a result of the mild monthly rise, annual headline WPI inflation fell from 7.3% in June to 6.9% in July, undershooting market expectations of a 7.2% rate. The figure marked, in fact, the lowest inflation rate since November 2009. Annual average wholesale price inflation followed suit, moderating from 8.4% in June to 8.2%. Meanwhile, the consumer price index added 1.51% over the previous month in July, which was up from the 1.18% rise recorded in June. Nevertheless, annual consumer inflation remained unchanged at June's 9.9%.