After months of drifting apart, Indias wholesale and retail inflation are finally converging
Both WPI and CPI have reached to a series low in the month of May 2017 and are now just 1 basis point difference between each other.
Key Highlights:
- CPI, WPI at series low in May 2017
- Difference of 1 basis points between CPI and WPI
- CPI at 2.18% and WPI at 2.17% in May 2017
India's Consumer Price Index (CPI) and Wholesale Price Index (WPI) are now close to meeting each other after months of growing differences.
CPI, in May 2017, stood at 2.18% and WPI in the same month was recorded at 2.17%.
The difference between the two was at its widest in August 2015.
Also Read: What is core inflation and why does it continues to be a problem?
Upside risks to core CPI in the near term could arise from GST implementation and HRA payouts as highlighted by the RBI at its policy meet last month, stated ICICI Securities.
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