FX.co ★ India Wholesale Price Inflation Eases To 1.31%, Lowest In 4 Months

India's wholesale price inflation in August decreased more than anticipated, reaching its lowest level in four months, according to provisional data released by the Ministry of Commerce and Industry on Tuesday.

The Wholesale Price Index (WPI) increased by 1.31 percent year-over-year in August, a slowdown from the 2.04 percent rise observed in July. Economists had forecasted a more modest decline to 1.80 percent.

The prices of primary articles grew at a reduced rate of 2.42 percent in August, compared to a 3.08 percent gain in the previous month. Similarly, the annual growth rate in the food index decreased to 3.26 percent, down from 3.55 percent.

Manufactured product costs rose by 1.22 percent, following a 1.58 percent increase in the prior month. Conversely, costs for fuel and power fell by 0.67 percent.

On a month-to-month basis, wholesale prices dropped by 0.45 percent from July, which had seen an increase of 0.78 percent.

Data released last week indicated that India's consumer price inflation edged up slightly to 3.65 percent in August from 3.60 percent in July. However, consumer price inflation remained within the lower range of the 2-6 percent target.