India Inflation Rate Rises to 2.36% in July


India's consumer prices increased 2.36 percent year-on-year in July 2017, beating market expectations of 1.87 percent and following a 1.54 percent gain in the previous month. Cost of housing, energy and clothing rose further and food prices fell at a softer pace.

Prices grew at a faster pace for: Fuel and light (4.86 percent from 4.54 percent), clothing and footwear (4.22 percent from 4.17 percent) and housing (4.98 percent from 4.7 percent).

Meanwhile, cost of food fell at a slower 0.29 percent after declining by 2.12 percent in June. While prices of vegetables fell less (-3.57 from -16.53 percent in June) and fruits inflation was higher (2.83 percent from 1.98 percent), cost of pulses declined further (-24.75 percent from -21.92 percent).

The corresponding provisional inflation rates for rural and urban areas are 2.41 percent and 2.17 percent (1.52 percent and 1.41 percent respectively in June).

Joana Ferreira | joana.ferreira@tradingeconomics.com
8/14/2017 2:30:59 PM