India Inflation Rate Falls To Fresh Low Of 1.54%

Consumer prices in India increased 1.54 percent year-on-year in June of 2017, slowing sharply from a 2.18 percent rise in May and below market expectations of 1.7 percent. The inflation rate fell to a fresh record low for the third month as food prices declined faster amid a favorable monsoon.

Year-on-year, cost of food and beverages fell 1.17 percent (-0.22 percent in May), provisional estimates showed. The food index alone declined 2.12 percent, compared to a 1.05 percent drop in May. It is the biggest decrease ever. Prices fell 16.53 percent for vegetables (-13.4 percent in May) and 21.92 percent for pulses (-19.45 percent) but increased slightly more for fruits (1.98 percent from 1.4 percent). 

The inflation also eased for fuel and light (4.54 percent from 5.46 percent), clothing and footwear (4.17 percent from 4.41 percent) and housing (4.7 percent from 4.84 percent). 

The corresponding provisional inflation rates for rural and urban areas are 1.59 percent and 1.41 percent (2.3 percent and 2.13 percent respectively in May).

India Inflation Rate Falls To Fresh Low Of 1.54%

Joana Taborda |
7/12/2017 12:19:50 PM