India’s Wholesale Prices Decline for 11 Straight Months

India’s wholesale prices fell for the 11th straight month as central bank Governor Raghuram Rajan kept monetary policy accommodative.

The wholesale price index dropped 4.54 percent in September from a year earlier, the Commerce Ministry said in a statement on Wednesday, more than the 4.42 percent decline predicted by the median estimate in a Bloomberg survey of 36 economists. The gauge had fallen 4.95 percent in August.

Rajan cut interest rates by a steeper-than-expected 50 basis points last month and said policy must stay accommodative to the extent possible. Consumer prices gained 4.4 percent in September, faster than August’s 3.7 percent, yet below the central bank’s 6 percent inflation target for the 13th month.

The Reserve Bank of India will now shift focus to its 5 percent CPI target for March 2017, Rajan had said.


Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell