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.
Author: David Ampudia, Economist