India Wholesale Prices Rise 0.27%, Less Than Forecast

(RTTNews) - India's wholesale prices increased for the third straight month in January, though at a slower-than-expected pace, data published by the National Statistical Office showed on Wednesday.

The wholesale price index, or WPI, rose 0.27 percent year-over-year in January, slower than the 0.73 percent gain in December. Economists had expected a 0.53 percent increase for the month.

The overall upward trend was primarily due to the increase in prices of food articles, machinery and equipment, other manufacturing, minerals, and other transport equipment, the ministry said.

Food prices grew at a slower rate of 3.79 percent annually in January versus a 5.39 percent gain a month ago. Similarly, costs for primary articles climbed 3.84 percent after a 5.78 percent rise in the prior month.

On the other hand, fuel and power charges declined 0.51 percent, slower than the 2.41 percent fall in December. Cost for manufactured producs were also 1.13 percent cheaper.

Data released earlier this week showed that India's consumer price inflation eased to a 3-month low of 5.10 percent in January from 5.69 percent in the prior month.

Further, inflation remained within the central bank's tolerance band of 2-6 percent.

Last week, the Reserve Bank decided to keep the repo rate unchanged at 6.50 percent and also to remain focused on the withdrawal of accommodation.