India Consumer Inflation Rises to 17-Month High

Consumer prices in India went up 5.69 percent year-on-year in January of 2016, higher than 5.61 percent in December of 2015 and accelerating for the sixth straight month. It is the highest figure since August of 2014 and above market expectations of 5.4 percent. Food inflation increased to 6.85 percent from 6.4 percent in December, also the highest in seventeen months.

Year-on-year, cost of food and beverages rose 6.66 percent (6.31 percent in December), provisional estimates showed. The food alone index increased to 6.85 percent compared to 6.4 percent in the previous month. The biggest rise came from pulses (up 43.32 percent from 45.92 percent in the previous month), followed by spices (10.56 percent from 10.83 percent in the previous month) and meat and fish (8.23 percent from 6.57 percent in the previous month). Prices of vegetables rose 6.39 percent (4.63 percent in the previous month) while fruits went down 0.24 percent (0.64 percent in the previous month). 

Cost of clothing and footwear went up 5.71 percent year-on-year (5.74 percent in December); fuel and light rose 5.32 percent (5.45 percent in December); and housing prices increased 5.26 percent (5.06 percent in December). 

The corresponding provisional inflation rates for rural and urban areas are 6.48 percent and 4.81 percent.

A year ago, the inflation rate was 5.19 percent.

India Consumer Inflation Rises to 17-Month High

Joana Taborda |
2/12/2016 1:02:57 PM