India Consumer Inflation Slows Slightly


India annual CPI inflation decreased to 5.17 percent in March of 2015 from 5.37 percent in February, below market expectations. It is the lowest rate in three months due to a slowdown in food cost.

Cost of food and beverages rose 6.2 percent in March, down from 6.76 percent in the previous month, provisional estimates showed. The food alone index rose 6.14 percent (6.79 percent in February). Cost of vegetables slowed to 11.26 percent (13.01 percent in the previous month) and fruit prices eased to 7.41 percent (8.93 percent in the previous month). Cost of meat and fish increased 5.11 percent; snacks, prepared meals and sweets rose 7.54 percent; milk went up 8.35 percent and spices surged 9.03 percent. In contrast, price decreases were reported for sugar (-2.61 percent) and egg (-3.47 percent). 

Cost of fuel and light rose 5.07 percent in March, up from 4.72 percent in February. Prices of clothing and footwear eased to 6.27 percent (6.38 percent in the previous month) while growth in housing cost slowed to 4.77 percent (4.98 percent in the previous month). In addition, transport and communication cost fell 1.35 percent compared to 2.16 percent decline in February.

The corresponding provisional inflation rates for rural and urban areas for March of 2015 are 5.58 percent and 4.75 percent.

India Consumer Inflation Slows Slightly


Joana Taborda | joana.taborda@tradingeconomics.com
4/13/2015 1:26:12 PM