India Consumer Inflation Slows in February

Consumer prices in India increased 5.18 percent year-on-year in February of 2016, lower than 5.69 percent in January and below market expectations of 5.6 percent. Consumer inflation eased for the first time in seven months, reaching the lowest since October due a slowdown in food cost.

Year-on-year, cost of food and beverages rose 5.52 percent (6.66 percent in January), provisional estimates showed. The food alone index rose at a slower 5.3 percent compared to 6.85 percent in the previous month. The biggest rise came from pulses (up 38.3 percent from 43.32 percent in the previous month), followed by spices (9.87 percent from 10.56 percent in the previous month) and meat and fish (7.27 percent from 8.23 percent in the previous month). Prices of vegetables rose a meager 0.7 percent (6.39 percent in the previous month) while fruits went down 0.72 percent (-0.24 percent in the previous month). 

Cost of clothing and footwear went up 5.52 percent year-on-year (5.71 percent in January); fuel and light rose 4.59 percent (5.32 percent in January); and housing prices increased 5.33 percent (5.26 percent in December). 

The corresponding provisional inflation rates for rural and urban areas are 5.97 percent and 4.3 percent.

A year ago, the inflation rate was 5.37 percent.

India Consumer Inflation Slows in February

Joana Taborda |
3/14/2016 12:34:06 PM