India Inflation Rate Slows More than Anticipated

Consumer prices in India increased 5.07 percent year-on-year in January of 2018, below a 17 month high of 5.21 percent in December and market expectations of 5.14 percent. Still, the inflation remained above 4.8 percent for the third month, the level not seen since July of 2016 and above 4 percent medium-term target of the Reserve Bank of India.

Cost went up at a slower pace for food and beverages (4.58 percent from 4.85 percent in December). The food index alone rose 4.7 percent, below 4.96 percent in the previous month. Inflation eased for vegetables (26.97 percent from 29.13 percent) and fruits (6.24 percent from 6.63 percent) while prices of pulses fell slightly less (-20.19 percent from -23.47 percent). Inflation was also slightly lower for fuel and light (7.73 percent from 7.9 percent).

On the other hand, prices went up faster for housing (8.33 percent from 8.23 percent) and clothing and footwear (4.94 percent from 4.8 percent).

The corresponding provisional inflation rates for rural and urban areas are 5.21 percent and 4.93 percent (5.27 percent and 5.09 percent respectively in December).

India Inflation Rate Slows More than Anticipated

Joana Taborda |
2/12/2018 2:11:25 PM