India Inflation Rate Below Forecasts

India's retail price inflation rate stood at 3.15 percent year-on-year in July 2019, little-changed from the previous month's 3.18 percent and slightly below market expectations of 3.20 percent. Inflation remained below the Reserve Bank of India's medium-term target of 4 percent for the twelfth consecutive month, despite recent interest rate cuts.

Food prices rose 2.36 percent from a year earlier in July, the biggest gain since June 2018. Also, the food & beverages index went up 2.33 percent, with main upward pressure coming from: meat & fish (9.05 percent); vegetables (2.82 percent); non-alcoholic beverages (3.38 percent); prepared meals, snacks, sweets etc. (2.56 percent); pulses & products (6.82 percent); egg (0.57 percent); cereals & products (1.31 percent); spices (2.02 percent); oils & fats (0.91 percent); and milk & products (0.98 percent). By contrast, fruits prices dropped 0.86 percent and sugar & confectionery costs fell 2.11 percent.

Among non-food products, prices increased for housing (4.87 percent); miscellaneous (4.65 percent); pan, tobacco and intoxicants (4.89 percent); and clothing and footwear (1.65 percent). Fuel & light prices were 0.36 percent lower.

The corresponding provisional inflation rates for rural and urban areas were 2.19 percent and 4.22 percent, compared with June's figures of 2.21 percent and 4.33 percent respectively.

On a monthly basis, consumer prices went up 0.91 percent in July.

India Inflation Rate Below Forecasts

MOSPI | Joana Ferreira |
8/13/2019 12:18:53 PM