Wholesale price index (WPI) is forecast to have fallen 1.17 per cent in the 12 months to July 11, close to the previous week's decline of 1.21 per cent.
It would be the sixth straight annual fall in the WPI, but the smallest in the past four weeks. Second-round effects from a fuel price hike in early July and higher prices of food articles and some manufactured goods would see the index rise from a week earlier, as it has done since March, but remain negative in annual terms due to a sharp acceleration in prices last year.
The annual change in the WPI, the main measure of price pressures in India, fell below zero in early June for the first time since weekly data was released in the 1977/78 fiscal year.
Because the price index has been rising in recent months, economists and policy makers say the negative WPI readings reflect the statistical base effect and not a sharp contraction in demand.
It would be the sixth straight annual fall in the WPI, but the smallest in the past four weeks. Second-round effects from a fuel price hike in early July and higher prices of food articles and some manufactured goods would see the index rise from a week earlier, as it has done since March, but remain negative in annual terms due to a sharp acceleration in prices last year.
The annual change in the WPI, the main measure of price pressures in India, fell below zero in early June for the first time since weekly data was released in the 1977/78 fiscal year.
Because the price index has been rising in recent months, economists and policy makers say the negative WPI readings reflect the statistical base effect and not a sharp contraction in demand.
No comments:
Post a Comment