India Inflation Rate at 4-Month Low

Consumer prices in India increased 4.44 percent year-on-year in February of 2018, below 5.07 percent in January and market expectations of 4.8 percent. It is the lowest inflation rate in four months but above the 4 percent medium-term target of the central bank.

Cost went up at a slower pace for food and beverages (3.38 percent from 4.58 percent in January). The food index alone rose 3.26 percent, below 4.7 percent in the previous month. Inflation eased for vegetables (17.57 percent from 26.97 percent) and fruits (4.8 percent from 6.24 percent) while prices of pulses fell slightly less (-17.35 percent from -20.19 percent). Inflation was also lower for fuel and light (6.8 percent from 7.73 percent) and housing (8.28 percent from 8.33 percent).

On the other hand, prices went up slightly more for clothing and footwear (5 percent from 4.94 percent).

The corresponding provisional inflation rates for rural and urban areas are 4.37 percent and 4.52 percent (5.21 percent and 4.93 percent respectively in January).

India Inflation Rate at 4-Month Low

Joana Taborda |
3/12/2018 12:12:06 PM