India: Price pressures ease in June
July 14, 2017
In June, consumer prices rose 0.53% from the previous month, which followed May’s 0.23% rise. A moderate increase in prices for food and beverages was recorded, while fuel and light prices declined from the previous month. Inflation fell to a record low of 1.5% in June, after coming in at 2.2% in May. The result slightly undershot market expectations of 1.6% and should give the Central Bank space to ease monetary conditions going forward. Inflation lies below the Central Bank’s medium term target of 4.0%.
The wholesale price index (WPI) in June declined 0.09% from the previous month, which followed May’s 0.35% fall. Rising prices for primary articles was partly offset by lower prices for fuel and power products, as well as manufactured products. Wholesale price inflation fell from May’s 2.2% to 0.9%, a six-month low. The trend, however, pointed upward and annual average wholesale inflation rose to 2.5% from 2.4% in May.