India: Inflation jumps on energy prices
September 14, 2012
In August, the wholesale price index (WPI) - India's preferred measure of inflation - added 1.09% over last month, which was well above the 0.06% rise observed in July. Although the monthly rise was broad-based, it mainly reflected a sharp increase in prices for fuel and power (+3.13% month-on-month). As a result of the strong monthly rise, annual headline WPI inflation jumped from 6.9% in July to 7.6% in August, exceeding market expectations of a 7.1% rate. Annual average wholesale price inflation, on the other hand, moderated from 8.2% in July to 8.0%. Meanwhile, the consumer price index added 1.51% over the previous month in July - the latest month for which data are available - which was up from the 1.18% rise recorded in June. Nevertheless, annual consumer inflation remained stable at June's 9.9%.