India’s wholesale prices fell more than estimated, in contrast with consumer-price gains, clouding the inflation outlook for central bank Governor Raghuram Rajan before an Aug. 4 policy review.
Wholesale prices fell 2.4 percent in June from a year earlier, after a 2.36 percent decline in May, the Commerce Ministry said in a statement on Tuesday. The median of 28 estimates in a Bloomberg survey of economists predicted a 2.3 percent drop.
The numbers contrast with those for consumer prices, which rose more economists had predicted. Rajan reiterated this month that the Reserve Bank of India will closely monitor monsoon data to ensure that the crucial June-September rainfall is enough to keep crop costs in check.
Food prices rose 2.88 percent in June from a year earlier, Tuesday’s data show. Manufactured product prices eased 0.77 percent and fuel and power dropped 10 percent.
CPI accelerated 5.4 percent in June, data showed on Monday, within Rajan’s target of 6 percent by January for the 10th straight month but more than the 5.1 percent increase predicted by economists. The central bank has said price gains will rise to about 6 percent by the start of next year.