India Inflation Rate Down To Record Low Of 2.18%

Consumer prices in India increased 2.18 percent year-on-year in May of 2017, slowing from a 2.99 percent rise in April and well below market expectations of 2.6 percent. The inflation hit a new record low for the second month as food prices fell for the first time ever led by pulses and vegetables.

Year-on-year, cost of food and beverages edged down 0.22 percent (1.21 percent in April), provisional estimates showed. The food index alone declined 1.05 percent, compared to a 0.3 percent rise in April. Prices fell 13.4 percent for vegetables (-8.59 percent in April) and 19.45 percent for pulses (-15.94 percent) and slowed for fruits (1.4 percent from 3.78 percent). 

The inflation also eased for fuel and light (5.46 percent from 6.13 percent), clothing and footwear (4.41 percent from 4.58 percent) and housing (4.84 percent from 4.86 percent). 

The corresponding provisional inflation rates for rural and urban areas are 2.3 percent and 2.13 percent (3.02 percent and 3.03 percent respectively in April).

India Inflation Rate Down To Record Low Of 2.18%

Joana Taborda |
6/12/2017 12:46:25 PM