India Inflation September 2017

India

India: Price pressures moderate in September

October 16, 2017

Consumer prices decreased 0.15% from the previous month in September, which contrasted the 0.89% increase recorded in the previous month. The decline reflected lower prices for food, with vegetables reversing a seven-month rising trend and falling a sizeable 7.1% in September. Inflation was unchanged at August’s 3.3% in September, falling below market expectations of a slight acceleration to 3.5%. Inflation is also below the Central Bank’s medium-term target of 4.0%.

The wholesale price index (WPI) in September decreased a sizeable 0.44% from the previous month, which contrasted August’s 0.79% monthly increase. Lower prices for food and vegetables outdid higher costs for fuels and manufactured products. Wholesale price inflation moderated as a result, easing to 2.6% in September from 3.2% in August. However, the trend continued to point upward, with the annual average wholesale inflation rate inching up to 2.9% in September from 2.8% in August.

FocusEconomics Consensus Forecast panelists expect consumer price inflation to average 4.2% in FY 2017, which is unchanged from last month’s forecast. In FY 2018, the panel expects consumer price inflation to average 4.7%.


Author:, Economist

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India Inflation September 2017

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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