India: Inflation continues to rise on higher fuel prices
October 15, 2012
In September, the wholesale price index (WPI) - India's preferred measure of inflation - added 1.08% over the previous month, which came in above the revised 0.48% increase seen in August (previously reported: +1.09% month-on-month). The most important driver behind the monthly increase was higher prices for fuel and power, which added 4.0% over August. As a result of the strong monthly rise, annual headline WPI inflation rose from 7.6% in August to 7.8% in September, which represents the highest level in ten months and overshot market expectations of a 7.7% rate. Annual average wholesale price inflation, on the other hand, moderated from 8.1% in August to 7.9%. Meanwhile, the consumer price index added 0.90% over the previous month in September, which was down from the 1.24% rise recorded in August. As a result, annual consumer prices moderated from 10.0% in August to 9.7%.