India: Inflation picks up in February
March 14, 2013
In March, the wholesale price index (WPI) - India's preferred inflation measure - rose 0.24% over the previous month, which contrasted the 0.06 drop observed in February. The reading reflects higher prices for primary articles as well as for fuel and energy.
Despite the monthly rise, annual headline inflation fell from 6.8% in February to 6.0% in March, which represents the lowest level since November 2009. In addition, the reading undershot market expectations, which had WPI inflation falling only to 6.3%. As a result, average WPI inflation slowed to 7.3% in the fiscal year 2012/13, down from the 8.9% registered in the FY 2011/12.
Meanwhile, also in March, the consumer price index rose 0.32% over the previous month, below the 0.63% increase observed in February. As a result of the softer increase, inflation slowed for the first time in six months, easing from 10.9% in February to 10.4%.
FocusEconomics Consensus Forecast panellists anticipate wholesale price inflation to average 6.5% in fiscal year 2013/14, which is down 0.1 percentage points from last month's forecast. In the fiscal 2014/15, the panel anticipates wholesale price inflation to average 6.2%.
Author: Ricardo Aceves, Senior Economist