India: Inflation hits over-one-year high; decline in wholesale prices softens in November
December 15, 2015
Consumer prices in November increased 0.40% over the previous month, which was below October’s 0.56% rise. The monthly result partly reflected an increase in prices of food and beverages, which have risen in recent months amid a backdrop of a weak monsoon. Inflation picked up pace in November, rising from 5.0% in October to 5.4%, thus hitting an over-one-year high. The result was in line with market analysts’ expectations.
The wholesale price index (WPI) in November rose 0.51% over the previous month, which was above October’s 0.11% increase. November’s reading reflected rising prices for primary and fuel and power products. On an annual basis, wholesale prices fell 2.0% in November, which was a softer decline than October’s 3.8% decrease. However, annual average WPI inflation continued its downward trajectory, falling from minus 2.5% in October to minus 2.7% in November.