India: Inflation stabilizes while wholesale prices continue to plummet in August
September 15, 2015
Consumer prices in August increased 0.89% over the previous month, which was above July’s 0.49% rise. The monthly result reflected an almost across the board increase in prices, with only prices of miscellaneous goods not accelerating compared to the previous month. Inflation stabilized in August, remaining at July’s 3.7%. The result slightly overshot market analysts’ expectations of 3.6% inflation.
The wholesale price index (WPI) in August fell 0.45% over the previous month, which followed July’s 0.89% increase. August’s more moderate drop was largely driven by a rise in prices for primary articles. On an annual basis, wholesale prices fell 5.0% in August, which was a steeper decline than July’s 4.1% decrease and marked the largest decline on record. As a result, annual average WPI inflation fell from minus 0.8% in July to minus 1.5% in August.