India's wholesale prices in February fell more-than-expected from a year ago, largely led by a decrease in fuel prices, marking the fourth decline in a row, data from the Ministry of Commerce and Industry revealed Monday.
The wholesale price index declined 2.06 percent annually following a 0.39 percent fall in January. Economists had forecast a 0.8 percent decrease.
The modest 0.11 percent gain reported earlier for December was revised to a 0.50 percent decline.
The fuel and power sub-index logged a 14.72 percent slump after a 10.69 percent fall in the previous month. It was also the fourth consecutive decrease.
The primary article inflation eased to 1.43 percent from 3.27 percent. The sub-index for manufactured products rose 0.33 percent after a 1.05 percent in the previous month.
Month-on-month, the wholesale price index fell 1.4 percent in February. The build up inflation rate thus far in the financial year ending March 31, was -2.50 percent compared to 5.53 percent a year ago, the ministry said.
Last week, official data showed that the consumer price index rose 5.37 percent annually following a 5.19 percent climb in January. Food inflation accelerated to 6.79 percent from 6.14 percent.
At the start of this month, India's government and the central bank revealed a deal to revamp the monetary policy framework to place focus on inflation.
Accordingly, the inflation target for the financial year 2016-17 and all subsequent years was set at 4 percent with a band of plus or minus 2 percent. Under the deal, the central bank will aim to bring inflation below 6 percent by January 2016.
In February, the government said the base year for the CPI was shifted to 2012 from 2010. The weighting for food and beverages as well as fuel and light components on the index were lowered.
After slashing interest rates by a quarter-point in a surprise move on March 4, the RBI Governor Raghuram Rajan said disinflation in the economy was proceeding at a faster pace than earlier envisaged.
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