India’s wholesale inflation eased the most since May on lower food costs.
Wholesale prices rose 2.6 percent in September from a year earlier, the Commerce Ministry said in a statement on Thursday. That’s lower than the 3.3 percent median estimate in a Bloomberg survey of 23 economists.
The easing was mainly on account of a 4 percent drop in food articles. The index for food articles rose by 2.04 percent, the statement said, while fuel, power and lighting prices rose 9.01 percent. Manufactured products rose 2.72 percent.
WPI core inflation rate, however, rose to 3 percent from 2.5 percent on a month-on-month basis.
It follows the release of consumer price data on Thursday, which showed India’s September inflation rate remained steady, below analysts expectations, after accelerating for two straight months.
The lower inflation is in contrast to RBI’s expectations. In its October monetary policy, the central bank raised its inflation forecast to 4.2 percent in the third quarter, and 4.6 percent in the fourth quarter.
The less-than-expected inflation figure may now add pressure on Governor Urjit Patel to cut lending rates in the December policy review with India’s economic growth at a three-year low.
(This article was originally published on BloombergQuint)
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