India Inflation Rate Slows Further in December

Annual consumer inflation in India declined to 2.19 percent in December of 2018 from 2.33 percent in November, matching market expectations of 2.2 percent. It is the lowest inflation rate since June of 2017 as food prices continued to decline and inflation eased for clothing, housing and fuel.

Prices of food and beverages declined 1.49 percent (-1.69 percent in November) and the food index alone dropped 2.51 percent after a record 2.61 percent decline in the previous month. Prices went down for vegetables (-16.14 percent compared to -15.59 percent in November), sugar and confectionery (-9.22 percent compared to -9.02 percent), pulses and products (-7.13 percent compared to -9.22 percent), eggs (-4.34 percent compared to -3.92 percent) and fruits (-1.41 percent compared to +0.21 percent).

Among non-food products, prices increased less for pan, tobacco and intoxicants (5.77 percent compared to 6.14 percent); clothing and footwear (3.52 percent compared to 3.53 percent); housing (5.32 percent compared to 5.99 percent); and fuel and light (4.54 percent compared to 7.39 percent); but rose slightly faster for miscellaneous (6.45 percent compared to 6.15 percent).

The corresponding provisional inflation rates for rural and urban areas were 1.65 percent and 2.91 percent, compared with November's figures of 1.71 percent and 3.12 percent respectively.

On a monthly basis, consumer prices fell 0.43 percent, the biggest monthly decline in two years.

India Inflation Rate Slows Further in December

Joana Taborda |
1/14/2019 12:35:26 PM