India: Inflation inched up in October
November 14, 2011
In October, the wholesale price index (WPI) ? India's preferred inflation measure ? increased 0.64% over the previous month. The reading came in only slightly above the 0.58% increase observed in September and was in line with market expectations. As in previous months, the increase in food prices (+1.0% month-on-month) was the main driver behind the monthly price climb. However, higher prices for non-food primary articles (+2.2% mom) as well as for fuel and power (+1.0% mom) also contributed to the monthly rise. Owing to the relatively strong print, annual headline WPI inflation remained unchanged at September's 9.7%. Meanwhile, annual average wholesale price inflation inched up from 9.4% in August to 9.5% in September.