India Consumer Inflation Highest Since August 2014

Consumer prices in India went up 6.07 percent year-on-year in July of 2016, accelerating for the fourth straight month and beating market expectations of 5.9 percent. It was the highest figure since August of 2014, as food cost rose further.

Year-on-year, cost of food and beverages rose 7.96 percent (7.38 percent in June), provisional estimates showed. The food alone index accelerated to 8.35 percent compared to 7.79 percent in the previous month. The biggest rise came from pulses (up 27.53 percent from 26.86 percent in the previous month), followed by sugar (21.91 percent from 16.79 percent) and vegetables (14.06 percent from 14.74 percent). Prices of fruits went up 3.53 percent, from 2.64 percent in the previous month.

Cost of clothing and footwear increased 5.23 percent year-on-year (5.01 percent in June); fuel and light rose 2.75 percent (2.92 percent); and housing prices went up 5.42 percent (5.46 percent).

The corresponding provisional inflation rates for rural and urban areas are 6.66 percent and 5.39 percent (6.29 percent and 5.26 percent respectively in June).

A year ago, the inflation rate was lower at 3.69 percent.

On a monthly basis, consumer prices rose 0.77 percent.

India Consumer Inflation Highest Since August 2014

Joana Ferreira |
8/12/2016 1:17:08 PM