India Inflation

India

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.

FocusEconomics Consensus Forecast panelists expect consumer price inflation to average 5.4% in FY 2015/2016, which is unchanged from last month’s forecast. In FY 2016/2017, the panel expects consumer price inflation to average 5.5%.Panelists expect wholesale price inflation to average 0.3% in FY 2015/2016, which is down 0.2 percentage points from last month’s forecast. In FY 2016/2017, the panel expects wholesale price inflation to average 4.5%.


Author: Angela Bouzanis, Senior Economist

Sample Report

Looking for forecasts related to Inflation in India? Download a sample report now.

Download

India Inflation Chart


India Inflation August 2015

Note: Annual and monthly variation of wholesale price index (WPI) and annual variation of consumer price index (CPI) in %.
Source: Ministry of Commerce and Industry and FocusEconomics calculations.


India Economic News

More news

Search form