India Consumer Inflation Rises Further to 22-Month High in June


Consumer prices in India went up 5.77 percent year-on-year in June of 2016, accelerating for the third straight month and reaching the highest since August of 2014. Figures came above market expectations of 5.73 percent, driven by food cost.

Year-on-year, cost of food and beverages rose 7.38 percent (7.2 percent in May), provisional estimates showed. The food alone index accelerated to 7.79 percent compared to a downwardly revised 7.47 percent in the previous month. The biggest rise came from pulses (up 26.86 percent from 31.57 percent in the previous month), followed by sugar (16.79 percent from 13.79 percent) and vegetables (14.74 percent from 10.77 percent). Prices of fruits went up 2.64 percent, the same as in the previous month.

Cost of clothing and footwear increased 5.01 percent year-on-year (5.37 percent in May); fuel and light rose 2.92 percent (2.94 percent); and housing prices went up 5.46 percent (5.35 percent).

The corresponding provisional inflation rates for rural and urban areas are 6.2 percent and 5.26 percent (6.45 percent and 4.89 percent respectively in May).

 A year ago, the inflation rate was lower at 5.4 percent.

India Consumer Inflation Rises Further to 22-Month High in June


Joana Taborda | joana.taborda@tradingeconomics.com
7/12/2016 1:28:00 PM