Producer Prices in India
India - Producer Prices
Inflation decelerates in August for the second consecutive month
In August, consumer prices rose 0.43% from the previous month—down from the 0.94% rise in recorded in July. Higher prices for food and beverages underpinned the reading in August. Furthermore, prices for pan, tobacco and intoxicants; clothing and footwear; housing; and fuel and light also increased.
Despite a weakening rupee, inflation decelerated for the second consecutive month in August, coming in at 3.7%, which was down from 4.2% in July. A weak annual increase in prices for food and beverages weighed on the reading in August. Meanwhile, higher prices for fuel and light; housing; pan, tobacco and intoxicants; and clothing and footwear stoked inflationary pressures. Core inflation, which excludes food and energy products, slowed to 5.9% in August, down from 6.1% in July.
The wholesale price index (WPI) rose 0.3% from the prior month in August, less than the revised 0.5% increase in July (previously reported: +0.4% month-on-month). Wholesale price inflation decelerated to 4.5% in August, 0.6 percentage points less than in July. Lower prices for primary articles such as fruit and vegetables weighed on wholesale prices in August. On the other hand, a substantial increase in fuel and power prices, coupled with more expensive manufactured products, underpinned inflationary pressures. Meanwhile, annual average wholesale inflation accelerated to 3.9% in August from 3.8% in July.
India Inflation Forecast
Met the why particular Consensus Forecast panelists expect consumer price inflation to average 4.9% in FY 2018, which is unchanged from last month’s forecast. In FY 2019, the panel expects consumer price inflation to average 4.7%. Meanwhile, our panel projects wholesale inflation of 4.0% for FY 2018, up 0.1 percentage points from last month’s report. In FY 2019, our panel foresees wholesale inflation averaging 3.4%.
India - Producer Prices Data
|Inflation (PPI, annual variation in %)||5.2||1.3||-3.6||1.8||2.9|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||8.07||-0.04 %||Sep 19|
|Exchange Rate||72.02||-0.09 %||Sep 20|
|Stock Market||37,121||-0.08 %||Sep 19|
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September 14, 2018
In August, merchandise exports increased 19.2% compared to the same month last year, up from the 14.3% expansion recorded in July.
September 14, 2018
In August, consumer prices rose 0.43% from the previous month—down from the 0.94% rise in recorded in July.
September 12, 2018
Annual industrial production growth decelerated to 6.6% in July from June’s revised 6.9% (previously reported: +7.0% year-on-year), slightly overshooting market analysts’ expectations of 6.5%. There was a broad-based increase in production across industrial sectors in July.
September 5, 2018
The composite Purchasing Manager’s Index (PMI), produced by Nikkei and IHS Market, fell to 51.9 in August from the 21-month high of 54.1 in July.
August 31, 2018
In the first quarter of FY 2018—which ran from April to June 2018—GDP grew 8.2% in year-on-year terms in Q1 FY 2018, up from 7.7% in Q4 FY 2017.