Inflation: Oil Still A Risk

January 2005 | Market Strategy

India's wholesale price inflation (WPI) slowed to 5.78% y-o-y in the week ending 1 January 2005, from 6.39% y-o-y at the end of the previous week, as lower energy and food prices helped reduce price pressures. India's WPI is now well below a 3½-year high of 8.74% y-o-y recorded in late August 2004, and BMI anticipates that inflation will continue to trend lower. Bumper harvests have materialised, and this in turn should reduce food prices. That said, WPI is still rather high, and well above 4.32% y-o-y recorded last April. This, coupled with the fact that the government has stated

If you would like to subscribe to Emerging Markets Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Emerging Markets Monitor please click on the trial link below.