India Inflation Rate at 4-Month High of 2.57%

Consumer prices in India rose 2.57 percent year-on-year in February of 2019, following a downwardly revised 1.97 percent rise in January and above market expectations of 2.43 percent. It is the highest inflation rate in four months as food prices fell less. In its February meeting, the Reserve Bank of India lowered its inflation forecasts to 2.8 percent for January-March 2019, mentioning a deflation in food items and a sharp fall in fuel inflation.

Prices of food and beverages declined 0.07 percent and the food index alone dropped 0.66 percent. Prices went down for vegetables (-7.69 percent), sugar and confectionery (-6.92 percent), fruits (-4.62 percent) and pulses and products (-3.82 percent) but rose sharply for meat and fish (5.92 percent). 

Among non-food products, prices increased for miscellaneous (6.02 percent); pan, tobacco and intoxicants (5.49 percent); housing (5.1 percent); clothing and footwear (2.73 percent); and fuel and light (1.24 percent).

The corresponding provisional inflation rates for rural and urban areas were 1.81 percent and 3.43 percent, compared with January's figures of 1.22 percent and 2.91 percent respectively.

On a monthly basis, consumer prices went up 0.2 percent, after dropping a downwardly revised 0.14 percent in January.

India Inflation Rate at 4-Month High of 2.57%

Joana Taborda |
3/12/2019 1:11:34 PM