India: Price pressures moderate in September
October 15, 2016
In September, consumer prices fell 0.23% from the previous month, which followed August’s flat growth. The monthly decrease reflected lower prices for food and beverages. Inflation continued to fall in September, declining from August’s 5.0% to an over one-year low of 4.3%. 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 September fell 0.16% from the previous month, which followed August’s 0.44% decrease. The overall decline in the index was driven by falling prices for primary articles, while prices for fuel and power products as well as manufactured goods rose. Wholesale price inflation inched down from 3.7% in August to 3.6% in September. The trend pointed up and the annual average variation in wholesale prices jumped from minus 0.2% in August to plus 0.5% in September.