India Consumer Inflation Down To Record Low Of 3.17%

Consumer prices in India increased 3.17 percent year-on-year in January of 2017, easing from a 3.41 percent rise in December and below market expectations of 3.22 percent. It is the lowest inflation rate since the series began in 2012 due to a sharp slowdown in food prices.

Year-on-year, cost of food and beverages rose 1.29 percent (1.98 percent in December), provisional estimates showed. The food index alone edged up 0.53 percent compared to 1.37 percent in the previous month. Prices increased less for sugar (18.69 percent from 21.06 percent in December) and fell for pulses (-6.62 percent from -1.57 percent) and vegetables (-15.62 percent from -14.59 percent) while cost of fruit rose more (5.81 percent from 4.74 percent). 

Inflation also eased for clothing and footwear (4.71 percent from 4.88 percent) and fuel and light (3.42 percent from 3.77 percent) but accelerated slightly for housing (5.02 percent from 4.98 percent). 

The corresponding provisional inflation rates for rural and urban areas are 3.36 percent and 2.9 percent (3.83 percent and 2.9 percent respectively in November).

A year ago, the inflation rate was higher at 5.69 percent.

On a monthly basis, consumer prices edged down 0.08 percent.

India Consumer Inflation Down To Record Low Of 3.17%

Joana Taborda |
2/13/2017 12:29:43 PM