India: Inflation moderates for the third consecutive month
July 14, 2011
In July, the wholesale price index (WPI) ? India's headline inflation measure ? added 0.65% over the previous month. The reading came in above the revised 0.39% price increase tallied in June (previously reported: +0.86% month-on-month) but was in line with market expectations. The monthly rise was mainly due to higher prices for fuel and power (+2.5% mom), as the Government recently authorised an increase in the price of diesel, kerosene and cooking gas. Annual WPI inflation moderated for the third month in a row, edging down to 9.2%, which represented the lowest level since November last year. Meanwhile, annual average WPI inflation remained unchanged at June's 9.3%. Finally, the slightly dated consumer price index for industrial workers (CPI-IW) increased 1.07% in June over the previous month, which nearly doubled the 0.51% increase observed in May. Despite the monthly price increase, annual CPI-IW inflation fell from 8.9% in May to 8.6%.