India Inflation Rate Slows More than Expected


Consumer prices in India increased 5.05 percent year-on-year in August of 2016, easing from a 6.07 percent rise in July and below market expectations of 5.5 percent. It is the lowest inflation rate in five months due to smaller rises in food prices.

Year-on-year, cost of food and beverages rose at a slower 5.83 percent (7.96 percent in July), provisional estimates showed. The food alone index also eased to 5.91 percent from 8.35 percent. Cost rose at a slower pace for pulses (22.01 percent compared to 27.53 percent in July) and vegetables (1.02 percent compared to 14.06 percent) but increased more for sugar (24.75 percent compared to 21.91 percent) and fruits (4.46 percent compared to 3.53 percent).

Cost of clothing and footwear went up 5.21 percent (5.23 percent in July); fuel and light rose 2.49 percent (2.75 percent) and housing prices increased 5.29 percent (5.42 percent).

The corresponding provisional inflation rates for rural and urban areas are 5.87 percent and 4.22 percent (6.66 percent and 5.39 percent respectively in July).

A year ago, the inflation rate was lower at 3.74 percent.

On a monthly basis, consumer prices were unchanged.

India Inflation Rate Slows More than Expected


Joana Taborda | joana.taborda@tradingeconomics.com
9/12/2016 12:28:34 PM