India Consumer Inflation Below Forecasts

The inflation rate in India edged up to 5 percent in June of 2018 from 4.87 percent in May, below market expectations of 5.3 percent. Still, it is the highest rate since January and marks the eighth straight month in which inflation is above the central bank medium-term target of 4 percent.

Food and beverages inflation went down to 3.18 percent from 3.37 percent in May, with the food index alone rising 2.91 percent (3.1 percent in May). Inflation slowed for fruits (10.13 percent vs 12.33 percent); vegetables (7.8 percent vs 8.04 percent); prepared meals, snacks, sweets etc. (4.83 percent vs 4.98 percent); meat and fish (2.41 percent vs 3.53 percent); milk and products (3.04 percent vs 3.2 percent); and prices continued to fall for both pulses and products (-10.87 percent vs -11.57 percent) and sugar and confectionery (-7.11 percent vs -8.12 percent). On the other hand, prices rose faster for eggs (5.85 percent vs 5.78 percent); oils and fats (2.62 percent vs 2.46 percent); non-alcoholic beverages (1.96 percent vs 1.8 percent); and spices (2.37 percent vs 1.54 percent). 

Prices also rose at a faster pace for: housing (8.45 percent vs 8.4 percent in May); fuel and light (7.14 percent vs 5.8 percent); clothing and footwear (5.67 percent vs 5.47 percent); pan, tobacco and intoxicants (8.05 percent vs 8 percent); and miscellaneous (5.74 percent vs 5.35 percent). 

The corresponding provisional inflation rates for rural and urban areas were 5 percent and 4.85 percent, compared with May's figures of 4.88 percent and 4.72 percent respectively.

On a monthly basis, consumer prices increased 0.57 percent in June, after a 0.51 percent gain in May.

India Consumer Inflation Below Forecasts

Joana Taborda |
7/12/2018 1:46:03 PM