India Inflation


India: Inflation rebounds in February

March 15, 2012

In February, the wholesale price index (WPI) ? India's preferred measure of inflation ? added 0.44% over the previous month. The figure nearly doubled the 0.25% rise observed in January and also exceeded market expectations. Although the monthly price rise was broad-based, it mainly reflected a large increase in prices for primary articles. As a result of the monthly rise, annual headline WPI inflation rose to 7.0% from 6.6% in January, which had marked a two-year low. Annual average wholesale price inflation, on the other hand, moderated from 9.2% in January to 9.0%. Meanwhile, the newly released consumer price index added 0.53% over the previous month in February, which was up from the 0.35% rise recorded in January. As a result, annual inflation jumped from 7.7% in January to 8.8%.


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