India: Inflationary pressures appear for second consecutive month
June 14, 2016
Consumer prices increased 1.02% in May over the previous month, which followed April’s revised 1.03% increase (previously reported: +0.95% month-on-month). The monthly increase mainly reflected higher prices for food and beverages, fuels and clothing and footwear. Inflation rose from 5.5% in April to 5.8% in May, which overshot the 5.6% the markets had expected.
The wholesale price index (WPI) in May rose 1.36% over the previous month, which followed April’s 1.36% increase. May’s reading continued to reflect rising prices for primary articles, particularly food, as well as for fuel and power products. Wholesale price inflation rose from 0.3% in April to 0.8% in May, which marked a second consecutive increase and the highest level since March 2015. In addition, the trend pointed up and the annual average variation in wholesale prices rose from minus 2.3% in April to minus 2.0% in May.