India Consumer Inflation at 21-Month High
Consumer prices in India increased 5.76 percent year-on-year in May of 2016, higher than an upwardly revised 5.47 percent rise in the previous month and compared to market expectations of 5.5 percent. It is the highest figure since August of 2014 as food inflation increased to 7.55%, the most in 21 months.
Year-on-year, cost of food and beverages rose 7.2 percent (6.21 percent in April), provisional estimates showed. The food alone index accelerated to 7.55 percent compared to 6.32 percent in the previous month. The biggest rise came from pulses (up 31.57 percent from 34.13 percent in the previous month), followed by sugar (13.96 percent from 11.18 percent) and vegetables (10.77 percent from 4.82 percent). Prices of fruits also grew at a faster pace (2.64 percent from 1.66 percent).
Cost of clothing and footwear went up 5.37 percent year-on-year (5.56 percent in April); fuel and light rose 2.94 percent (3.03 percent); and housing prices increased 5.35 percent (5.37 percent).
The corresponding provisional inflation rates for rural and urban areas are 6.45 percent and 4.89 percent (6.09 percent and 4.68 percent respectively in April).
A year ago, the inflation rate was lower at 5.01 percent.
6/13/2016 1:40:43 PM