India: Inflation moderates in September
October 14, 2011
In September, the wholesale price index (WPI) ? India's headline inflation measure ? increased 0.58% over the previous month. The reading came in above the 0.45% price rise observed in August (previously reported: +0.58% month-on-month) but was in line with market expectations. As in previous months, the increase was buttressed by higher food prices. Higher prices for fuel, in particular petrol, also contributed to the monthly hike. Meanwhile, annual headline WPI inflation dropped a notch from 9.8% in August, the highest level since July 2010, to 9.7% in September. The slightly dated consumer price index for industrial workers (CPI-IW) rose 0.52% in August over the previous month, which was nearly a quarter of the robust 2.18% increase observed in July. Despite the monthly price increase, annual CPI-IW inflation accelerated from 8.4% in July to 9.0% in August.