India: Inflation falls further in November
December 14, 2012
In November, the wholesale price index (WPI) - India's headline inflation measure - rose a modest 0.06%, which contrasted the revised 0.06% drop seen in October (previously reported: +0.18% month-on-month). Lower prices for fuel and power almost offset higher prices for primary articles as well as for manufactured products.
Owing to the subdued monthly figure, annual headline WPI inflation dropped from 7.5% in October to 7.2% in November. The reading represents the lowest inflation rate since January 2012 and surprised the market on the downside, as analysts expected inflation to edge up to 7.6%.
Meanwhile, the consumer price index added 0.40% over the previous month in November, which was down from the 0.73% rise recorded in October. Despite the lower monthly increase, annual consumer inflation inched up from 9.8% in October to 9.9%.