India Inflation Rate Rises to 4.87% in May

India's annual inflation rate rose to 4.87 percent in May of 2018 from 4.58 percent in April, slightly above market expectations of 4.83 percent. It is the highest reading in four months amid rising prices for food and fuel.

Food and beverages inflation went up to 3.37 percent from 3 percent in April, with the food index alone rising 3.1 (2.80 percent in April). Upward pressure came from prices of fruits (12.33 percent vs 9.65 percent); vegetables (8.04 percent vs 7.29 percent); eggs (5.78 percent vs 6.26 percent); prepared meals, snacks, sweets etc. (4.98 percent vs 4.85 percent); meat and fish (3.53 percent vs 3.59 percent); milk and products (3.2 percent vs 3.21 percent); oils and fats (2.46 percent vs 2.11 percent); non-alcoholic beverages (1.8 percent vs 1.73 percent); and spices (1.54 percent vs 1.25 percent). On the other hand, prices fell for both pulses and products (-11.57 percent vs -12.35 percent) and sugar and confectionery (-8.12 percent vs -4.05 percent). 

Prices also rose at a faster pace for: fuel and light (5.8 percent vs 5.24 percent); clothing and footwear (5.47 percent vs 5.11 percent); pan, tobacco and intoxicants (8 percent vs 7.91 percent); and miscellaneous (5.35 percent vs 4.96 percent). In constrast, inflation eased for housing (8.4 percent vs 8.50 percent in April).

The corresponding provisional inflation rates for rural and urban areas were 4.88 percent and 4.72 percent, compared with April's figures of 4.67 percent and 4.42 percent respectively.

On a monthly basis, consumer prices increased 0.51 percent in May, after a 0.44 percent gain in April.

India Inflation Rate Rises to 4.87% in May

Joana Taborda |
6/12/2018 12:28:16 PM