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.