India: Inflation jumps to seven-month high
October 14, 2013
In September, the wholesale price index (WPI) - India's preferred inflation measure - jumped 1.24% over the previous month. The reading came above the revised 1.14% increase observed in August (previously reported: 1.20% month-on-month) and mainly reflects higher prices for primary goods, in particular non-food products and fuels.
Wholesale prices increased 6.5% over the same month last year (August: 6.1% year-on-year), which marks the highest rate in seven months. The annual reading exceeded market expectations of a 6.0% increase. Despite the annual jump, annual average WPI inflation fell from 6.4% in August to 6.2% in September.
In addition, the consumer price index increased 1.19% over the previous month in September, slightly above the 1.13% increase observed in August. Annual inflation climbed from 9.5% in August to 9.8% in September.
FocusEconomics Consensus Forecast panelists expect wholesale price inflation to average 5.4% in fiscal year 2013/2014, which is down 0.3 percentage points from last month's forecast. In fiscal year 2014/2015, the panel expects wholesale price inflation to average 5.7%.
Author: Ricardo Aceves, Senior Economist