India July Inflation Rate Weaker than Expected

India' annual inflation rate eased to 4.17 percent in July 2018 from a downwardly revised 4.92 percent in the previous month, and below market expectations of 4.51 percent. Still, inflation remained above the central bank's medium-term target of 4 percent for nine consecutive months.

Food and beverages inflation went down to 1.73 percent in July from 3.11 percent in June, with the food index alone rising 1.37 percent (vs 2.91 percent in June). Inflation slowed for fruits (6.98 percent vs 10.06 percent); prepared meals, snacks, sweets etc. (4.46 percent vs 4.76 percent); milk and products (2.96 percent vs 3.04 percent); and non-alcoholic beverages (1.40 percent vs 1.96 percent). In addition, there was a decline in prices of vegetables (-2.19 percent vs 7.80 percent); pulses and products (-8.91 percent vs -10.87 percent); and sugar and confectionery (-5.81 percent vs -7.11 percent). On the other hand, inflation picked up for eggs (7.41 percent vs 5.85 percent); oils and fats (2.79 percent vs 2.62 percent); spices (2.66 percent vs 2.29 percent); and meat and fish (2.26 percent vs 2.20 percent). 

Among non-food products, prices rose at a softer pace for: housing (8.30 percent vs 8.45 percent); clothing and footwear (5.28 percent vs 5.60 percent); and pan, tobacco and intoxicants (6.34 percent vs 8.05 percent). Inflation rose for both fuel and light (7.96 percent vs 7.22 percent); and miscellaneous (5.80 percent vs 5.66 percent). 

The corresponding provisional inflation rates for rural and urban areas were 4.11 percent and 4.32 percent, compared with June's figures of 4.93 percent and 4.85 percent respectively.

On a monthly basis, consumer prices increased 0.94 percent in July, after a revised 0.51 percent gain in June.

India July Inflation Rate Weaker than Expected

Joana Ferreira |
8/13/2018 1:03:06 PM