India Inflation Rate Accelerates More than Expected

Consumer prices in India went up 5.39 percent year-on-year in April of 2016, accelerating from a 4.83 percent rise in the previous month and higher than market expectations of 5 percent. Food inflation also reached a three-month high.

Year-on-year, cost of food and beverages rose 6.21 percent (5.27 percent in March), provisional estimates showed. The food alone index accelerated to 6.32 percent compared to 5.21 percent in the previous month. The biggest rise came from pulses (up 34.13 percent from 34.15 percent in the previous month), followed by sugar (11.18 percent from 3.92 percent), spices (11.18 percent from 9.58 percent) and meat and fish (8.07 percent from 7.74 percent in the previous month). Prices of vegetables rose 4.82 percent (0.54 percent in the previous month) and fruits went up 1.66 percent, rebounding from a 1.1 percent decline. 

Cost of clothing and footwear went up 5.56 percent year-on-year (5.27 percent in March); fuel and light rose 3.03 percent (3.38 percent); and housing prices increased 5.37 percent (5.31 percent). 

The corresponding provisional inflation rates for rural and urban areas are 6.09 percent and 4.68 percent (5.79 percent and 3.98 percent respectively in March).

A year ago, the inflation rate was lower at 4.87 percent.

India Inflation Rate Accelerates More than Expected

Joana Taborda |
5/12/2016 1:51:45 PM