India: Inflation eases in April
May 15, 2014
The wholesale price index (WPI) increased 0.22% over the previous month in April. The reading, which was slightly up from the 0.17% rise observed in March (previously reported: +0.50% month-on-month), reflected that higher prices for primary articles and manufactured products more than offset the drop in prices for fuel and power.
Wholesale prices increased 5.2% over the same month last year in April and came in below market expectations of a 5.7% rise. In addition, April's result was lower than the 5.7% rise observed in March. Despite the drop in the annual figure, annual average WPI inflation remained at March's 6.0% in April.
The consumer price index increased 0.72% over the previous month in April, which came in above the 0.58% rise recorded in March. Annual inflation increased from 8.3% in March to 8.6% in April.
FocusEconomics Consensus Forecast panelists expect wholesale price inflation to average 5.8% in FY 2014/2015, which is unchanged from last month's forecast. In FY 2015/2016, the panel expects wholesale price inflation to average 5.7%.