NEW DELHI: WPI inflation is expected to rise and average around 0.6 per cent this year, while the pace of increase will remain slow amid weak demand conditions, says a Nomura report. According to the Japanese financial services major, the year-on-year WPI inflation is expected to rise on waning base effects and average 0.6 per cent in 2016 from (-)2.7 per cent in 2015.
Wholesale Price Index-based (WPI-based) inflation accelerated for the third straight month in June hitting 1.62 per cent on costlier food and manufactured items. “Food inflation has doubled over the span of four months, contributing significantly to the rise in WPI. Although food prices typically rise in summer months, the pick-up this June was much higher than normal,” Nomura said in a research note.
