India: Inflation falls to lowest level in over three years
February 14, 2013
In January, the wholesale price index (WPI) - India's preferred inflation measure - rose 0.36% over the previous month, which contrasted the 0.12% drop recorded in December. Higher prices for primary articles, particularly for food, as well as for energy and fuels were the main drivers behind the monthly increase.
Despite the monthly rise, annual headline WPI inflation fell from 7.2% in December to 6.6% in January, which represents the fourth consecutive month of easing inflation and the lowest level since November 2009.
Meanwhile, the consumer price index jumped 0.56% over the previous month in January, which was well above the 0.16% increase recorded in December. As a result of the monthly jump, annual CPI inflation rose from 10.6% in December to 10.8% in January, the highest level since records began last year.
Author: Ricardo Aceves, Senior Economist