WPI DEFLATION
Wholesale inflation surges to 15-month high of 2.61% in May
Manufactured products, which account for nearly two-thirds of weight in the Wholesale Price Index (WPI), returned to inflation for the first time since February 2023 with a 0.78% rise last month.
Macro policy choices unclear, but work cut out on reforms agenda
In FY24, nominal GDP grew 9.6%, CPI inflation recorded 5.4%, and real GDP growth was estimated at 8.2%.
Govt looks to change base year for major economic gauges to FY23, revamp of key datasets also being planned
The base year provides a reference point for measuring changes in economic variables and comparing relative performances of indicators over time. For instance, real gross domestic product (GDP) growth is currently calculated with reference to FY12 prices.
Wholesale inflation rises to a 13-month high of 1.3% in April
Wholesale inflation hits a 13-month high of 1.26% in April, up from 0.53% in March, driven by food and fuel prices. Food articles see a significant rise, with double-digit inflation in rice, pulses, and vegetables. Rising crude prices contribute to fuel inflation. Experts predict continued inflation due to base effect and geopolitical tensions.
March wholesale inflation rises to a three-month high of 0.5%
Economists expect that despite easing inflation, Reserve Bank of India is unlikely to cut rates sooner, as it would wait for monsoon and Fed’s action to take a further call. Economists were earlier expecting a cut as early as June or August.
India's WPI inflation eases to four-month low of 0.20 per cent in February
The sequential WPI rate for February grew 0.07 per cent against a contraction of (-)0.33 per cent in the month before. "Positive rate of inflation in February, 2024 is primarily due to increase in prices of food articles, crude petroleum & natural gas, electricity, machinery & equipment and motor vehicles, trailers & semi-trailers etc," the release said.
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Wholesale inflation eases to a three-month low of 0.27% in January
Sequentially, the wholesale price index was down 0.3%, with the food index declining 1% and manufactured products continuing its deflation for a second consecutive month. Prices of manufactured products in January were down 1% sequentially as well.
India's WPI inflation eases to three-month low of 0.27 per cent in January
India's wholesale price index-based inflation has further decreased to 0.27 per cent in January compared to 0.73 per cent in December, according to provisional data released by the Commerce Ministry. This is lower than the estimated rise of 0.53 per cent predicted by a Reuters poll.
Wholesale inflation rises to nine-month high of 0.7% in December
Wholesale inflation in India reached a nine-month high of 0.73% in December, compared to 0.26% in the previous month. However, experts predict that wholesale inflation will remain range-bound around 1% for the rest of the fiscal year due to continued easing in global commodity prices.
Wholesale price index returns to inflation after seven months
The Wholesale price index registered a 0.26% increase in November, compared with 0.5% deflation in October, according to data released Thursday. Experts indicate that while wholesale inflation will likely remain positive, it will stay below 2% for the remainder of the year as energy and manufacturing costs remain contained.
India's wholesale prices in November rise 0.26%; rebounds from negative territory after seven months
India's wholesale inflation surged to 0.26 per cent in November, marking a significant shift from seven consecutive months in negative territory. The rebound is attributed to heightened demand, particularly fueled by the festive season.
WPI stays in negative zone, sinks to three-month low of -0.5% in October
Icra expects WPI inflation to remain below 3% for the remaining months of FY24 if commodity prices continue to remain at benign levels. "The deflationary trend in WPI could end in the coming months with the support of favourable base fading away gradually and expectation of subdued commodity prices amid global demand weakness," said Rajani Sinha, chief economist, CareEdge. "However, for the full year, we expect WPI inflation to average below 1%."
WPI deflation widens to a month low of 0.5% in October
In October, wholesale deflation in India deepened to -0.5%, a three-month low compared to the preceding month's -0.3%. This decline stemmed from softer inflation in primary food articles and significant deflation in crude petroleum and natural gas.
Wholesale prices decline for sixth straight month to 0.3% in September
Wholesale prices in India have declined for the sixth consecutive month in September, reaching 0.26%, down from 0.52% in August. Despite this, the prices of manufactured products have risen sequentially for the second consecutive month due to a rise in commodity prices. Experts suggest that the uncertainty in commodity prices will likely keep the Reserve Bank of India on hold.
Experts see WPI inflation rising in second half this fiscal
Experts predict that the Wholesale Price Index (WPI) in India will rise in the second half of the fiscal year, and a prolonged deflationary trend could negatively impact growth. Wholesale inflation has remained in the negative territory for the sixth consecutive month in September, primarily due to falling prices of food items. The contraction in WPI is attributed to decelerating food prices and declining fuel and manufactured product prices. While a slight increase in WPI is expected, overall WPI inflation is anticipated to remain low.
India's wholesale prices fall 0.26% in September
Wholesale inflation in India has remained negative for the sixth consecutive month, with prices falling 0.26% in September. This follows a five-month high of -0.52% in August. The decrease in inflation is primarily attributed to lower prices of chemical products, mineral oils, textiles, basic metals, and food products compared to the previous year.
How rising oil prices can impact Indian economy
Stable demand, optimism due to China’s stimulation measures, and supply cuts announced by Russia and Saudi Arabia have led to a surge in oil prices. Sameer Bhardwaj analyses the impact on the Indian economy.
Wholesale inflation dips for fifth month to 0.5% in August
Wholesale inflation in India declined for the fifth consecutive month in August, reaching 0.52%. This provides the Reserve Bank of India with comfort to hold rates ahead of the Monetary Policy Committee meeting in October. The fall in commodity prices has resulted in lower input costs for producers, leading to limited pressure on consumer prices. Retail inflation also eased in August, and experts predict a further decrease in inflation in September. However, wholesale prices may rise later in September due to rising crude oil prices.
Wholesale prices decline for fifth straight month to 0.5% in August
Wholesale inflation in India declined for the fifth consecutive month in August, reaching 0.52%. This is expected to provide comfort to the Reserve Bank of India (RBI) to maintain interest rates in its upcoming meeting. The fall in commodity prices has resulted in lower input costs for producers and limited pressure on consumer prices.
Inflation rises to a 15-month high of 7.44% in July; WPI deflation narrows
The Reserve Bank of India's (RBI) target inflation range has been breached by July's soaring consumer price index (CPI), which hit a 15-month high of 7.44%. Experts have cautioned the rate cut forecast for this fiscal year has now been pushed back, with Rajani Sinha, CareEdge chief economist, expecting the rate to remain high in the near future. Food prices have been blamed for the spike, with pulses and vegetables recording significant inflation.
WPI contracts 1.36% in July, after deflating 4.12% in June
India's wholesale inflation contracted 1.36 per cent in the month of July after contracting 4.12 per cent in June. Food index inflation surged to 7.75 per cent on an annual basis after contracting 1.24 per cent in June.
India's wholesale inflation contracts at a faster clip of 4.12% in June
India’s wholesale price-based inflation declined 4.12 per cent in June on an annual basis from a contraction of 3.48 per cent in May, the Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry stated on Friday.
May WPI deflation hits near-8-year low of 3.5%
Data released on Monday showed retail inflation dipping to a 25-month low of 4.25% in May, inching closer to the Reserve Bank of India's target rate of 4%.
Wholesale prices in deflation zone for the first time in three years
India's wholesale inflation fell into deflation for the first time in three years, with the Wholesale Price Index falling 0.92% YoY in April. Rajani Sinha, chief economist at CareEdge, expects the trend to continue until July with the annual average ranging between 1-2%. The deflation could lead to a cut in interest rates, with retail inflation slowing sharply to 4.7% from March's 5.7%, according to data released on Friday
WPI declines for 11th straight month, falls to -0.92% in April
Wholesale price-based inflation declined to -0.92% in April from 1.34% in March, the Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry said on Monday. Retail inflation in India eased sharply in April to 4.7 per cent or an 18-month low, as against 5.7 per cent the previous month.
Wholesale inflation continues downtrend, moderates to 1.34% in March
The decline in the rate of wholesale inflation in March is primarily contributed by fall in prices of basic metals, food products, textiles, non-food articles, minerals, rubber & plastic products, crude petroleum & natural gas and paper and paper products.
SGX Nifty up 10 points; here's what changed for market while you were sleeping
Asian share markets opened mixed on Thursday in cautious trade as investors eyed key China data due later in the day. MSCI's broadest index of Asia-Pacific shares outside Japan was up by 0.30 per cent.
Separate price index for services on cards; may merge with WPI later
In the first phase, the government plans to have separate indices for banking, insurance, securities, telecom, air transport and railways.
May wholesale prices fall signals deflation
Independent economists said the deflation points to weak demand, but cautioned against reading too much into it because it did not give a true picture of prices on the consumer front.
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