India: Inflation rises in June, while wholesale prices stabilize
July 15, 2015
Consumer prices in June increased 1.15% over the previous month, which was above May’s 0.75% rise. The monthly result mainly reflected increases in the prices of food and beverages as well as pan, tobacco and intoxicants. In addition, prices for fuel and light as well as for clothing and footwear also rose. Inflation picked up pace in June, rising from May’s 5.0% to 5.4%, which marked an eight-month high. In addition, the result overshot market expectations of 5.1% inflation.
The wholesale price index (WPI) in June rose 0.51% over the previous month, which was below May’s 0.74% increase. June’s result came on the back of a rise in fuel prices and manufactured products, however at a slower pace than in the previous month.
Wholesale prices in June fell 2.4% over the same month last year, which mirrored May’s decrease. As a result, annual average WPI inflation fell from 0.6% in May to zero growth in June.