India: Inflation jumps to 14-month high in November
December 16, 2013
In November, the wholesale price index (WPI) - India's preferred inflation measure - increased 0.67% over the previous month. The reading came in above the 0.33% increase registered in October and primarily resulted from higher prices for food, particularly for fresh food, as well as for gas and fuel.
Wholesale prices increased 7.5% over the same month last year (October: 7.0%), which marks the highest rate since September 2012. The annual reading overshot the 7.0% increase the market had expected. Despite the jump in the annual figure, annual average WPI inflation remained steady at October's 6.3%.
In addition, the consumer price index increased 1.38% over the previous month in November, which was up from the 1.03% increase observed in October. Annual inflation climbed from 10.2% in October to 11.2% in November.
FocusEconomics Consensus Forecast panelists expect wholesale price inflation to average 5.9% in fiscal year 2013/2014, which is unchanged from last month's forecast. In fiscal year 2014/2015, the panel expects wholesale price inflation to average 5.8%, which is also unchanged from last month's estimate.
Author: Ricardo Aceves, Senior Economist