India: Inflation falls to lowest level in 13 months
December 14, 2011
In November, the wholesale price index (WPI) ? India's headline inflation measure ? added only 0.06% over the previous month, which came in below the revised 0.38% increase seen in October (previously reported: +0.58 month-on-month). In addition, the print came in well below the 0.63% price rise seen in November last year, prompting annual inflation to fall from 9.7% in October to 9.1% in November, which represents the lowest level since October 2011. Food prices were mostly responsible for the subdued reading by dropping 2.0% over the previous month, which contrasted the steady increases observed in the previous five months. In contrast, prices for fuel and power rose 0.9%, whereas prices for manufactured goods increased 0.5%. Despite the subdued annual reading, annual average wholesale price inflation inched up from 9.5% in October to 9.6%.