Country Report India April 2011

Economic performance: Inflation unexpectedly edges higher

Inflation as measured by the wholesale price index rose unexpectedly, to 8.3% year on year, in February, compared with 8.2% in January. The index for primary articles, including food items, rose by 14.7% in February, compared with a larger rise of 17.3% in January. Within that category, food inflation fell to 10.5% in February, from 15.7% in January, but non-food inflation accelerated sharply, to 30.2%, from 23.9% in the previous month. The year-on-year inflation rate for December was also revised up, to 9.4%, from a provisional estimate of 8.4%.

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