India: Price pressures rise in February
March 14, 2017
In February, consumer prices in India rose 0.23% from the previous month, which contrasted January’s 0.08% decrease. The rise came on the back of higher prices for tobacco and intoxicants, housing, and fuel and light. Inflation rose in February, jumping from 3.2% to 3.7%. January’s reading had marked a multi-year low. Inflation is below the Central Bank’s target of 5.0% for Q4 FY 2016 and lies below the center of its medium term target of 4.0% plus/minus 2.0 percentage points.
The wholesale price index (WPI) in February rose 0.49% from the previous month, which was below January’s 0.71% increase. Prices for fuel and power products continue to increase on the back of higher commodities prices, while prices for manufactured goods were flat over the previous month. Wholesale price inflation rose to 6.6% in February from 5.3% in January, the highest rate since May 2013. As a result, the trend pointed upward and annual average wholesale inflation rose to 3.1% in February from 2.5% in January.