India: Inflation records three-year low in December
January 15, 2013
In December, the wholesale price index (WPI) - India's headline inflation measure - fell 0.12% over the previous month, which contrasted the revised 0.18% increase tallied in November (previously reported: +0.06% month-on-month). Lower costs for primary articles and flat prices for manufactured goods were the main drivers behind the monthly decline.
Annual headline WPI inflation remained unchanged at November's 7.2%, which undershot market expectations on the downside, as analysts expected inflation to rise to 7.4%. The print represents the lowest reading in three years.
Meanwhile, the consumer price index rose 0.16% over the previous month in December, which was well below the 0.40% increase observed in November. Notwithstanding the weaker monthly increase, annual CPI inflation jumped from 9.9% in November to 10.6% in December, which marks the highest level since records began.
Author: Ricardo Aceves, Senior Economist