India: Inflation rises in December, while fall in wholesale prices moderates
January 12, 2016
Consumer prices in December decreased 0.40% over the previous month, which contrasted November’s 0.40% rise. The monthly drop partly reflected a decrease in prices of food and beverages. Inflation picked up pace in December, rising from 5.4% in November to 5.6%, which marked the highest rate since September 2014. The result was slightly above market analysts’ expectations of a rise to 5.5%.
The wholesale price index (WPI) in December fell 0.11% over the previous month, which contrasted November’s 0.40% increase. December’s reading reflected falling prices for manufactured products as well as for fuel and power products. On an annual basis, wholesale prices fell 0.7% in December, which was a softer decline than November’s 2.0% drop. However, the trend stabilized and annual average WPI inflation remained at November’s minus 2.7%.