Input and output price indexes fall, easing price pressures in India’s manufacturing sector

Both input‑cost and output‑price indexes recorded declines in June, according to the HSBC Flash PMI. The reduction signals that price pressures on manufacturers are easing, which could translate into lower inflation risks. While raw‑material inventories grew slowly, finished‑goods stocks fell as firms adjusted output to match the softened demand. The trend follows comments from the chief India economist that the earlier surge in demand, spurred by Middle‑East tensions, is now tapering.