India Inflation October 2016

India

India: Price pressures moderate in October

November 15, 2016

In October, consumer prices rose 0.38% from the previous month, which contrasted September’s 0.15% fall. The monthly increase reflected higher prices for food and beverages as well as pan, tobacco and intoxicants. Inflation continued to fall in October, declining from September’s 4.4% to a 14-month low of 4.2%. As a result, inflation is now broadly at the center of the Central Bank’s target of 4.0% plus/minus 2.0 percentage points.

The wholesale price index (WPI) in October rose 0.05% from the previous month, which contrasted September’s 0.27% decrease. The rise in the index was driven by higher prices for fuel and power products as well as manufactured goods. Wholesale price inflation fell from 3.6% in September to 3.4% in October. The trend pointed up and annual average wholesale inflation jumped from 0.5% in September to 1.1% in October.

FocusEconomics Consensus Forecast panelists expect consumer price inflation to average 5.1% in FY 2016, which is down 0.1 percentage points from last month’s forecast. In FY 2017, the panel expects consumer price inflation to average 5.1%. Panelists expect wholesale price inflation of 2.8% in FY 2016, which is down 0.2 percentage points from last month’s forecast. In FY 2017, the panel expects wholesale price inflation to average 3.7%.


Author: Angela Bouzanis, Senior Economist

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India Inflation October 2016 0

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.


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