India Inflation Rate Rises Less Than Forecasts

Consumer prices in India increased 3.81 percent year-on-year in March of 2017, following a 3.65 percent rise in February and below market expectations of 3.98 percent. Food inflation slowed to 1.93 percent from 2.01 percent.

Year-on-year, cost of food and beverages rose 2.54 percent (2.46 percent in February), provisional estimates showed. The food index alone rose 1.93 percent compared to 2.01 percent in the previous month. Prices increased less for sugar (17.05 percent from 18.83 percent in February) and meat and fish (2.96 percent from 3.5 percent) and fell more for pulses (-12.4 percent from -9 percent). In contrast, prices rose faster for fruits (9.35 percent from 8.33 percent) and fell less for vegetables (-7.24 percent -8.29 percent).

Inflation also increased for fuel and light (5.56 percent from 3.9 percent) and clothing and footwear (4.6 percent from 4.38 percent) but was nearly flat for housing (4.96 percent from 4.9 percent).

The corresponding provisional inflation rates for rural and urban areas are 3.75 percent and 3.88 percent (3.67 percent and 3.55 percent respectively in February).

India Inflation Rate Rises Less Than Forecasts

Joana Taborda |
4/12/2017 12:17:19 PM