India Inflation Rate Falls to Fresh Record Low

Consumer prices in India increased 3.66 percent year-on-year in August of 2015, slowing slightly from a revised 3.69 percent rise in July and in line with market expectations. The inflation rate fell to a fresh record low in August, staying below the central bank’s 6 percent target for the 11th month in a row.

Figures for July were revised downwards to show the inflation rate at 3.69 percent from an initial estimate of 3.78 percent.

Year-on-year, cost of food and beverages rose 2.92 percent in August, following a 2.89 percent increase in July, provisional estimates showed. The food alone index rose 2.2 percent, marginally the same as in the previous month. Cost of pulses recorded the highest increase (25.76 percent), followed by spices (8.37 percent), prepared meal and snacks (7.31 percent), meat and fish (5.79 percent) and milk (5.33 percent). In contrast, cost of vegetables fell 6.36 percent and prices of sugar and confectionery decrease 13.33 percent. 

Cost of fuel and light rose 5.7 percent year-on-year in June (5.36 percent in July); cost of clothing and footwear went up 5.77 percent (5.9 percent in July) and housing prices rose 4.68 percent (4.44 percent in July). 

The corresponding provisional inflation rates for rural and urban areas for August of 2015 are 4.47 percent and 2.67 percent.

India Inflation Rate Falls to Fresh Record Low

Joana Taborda |
9/14/2015 1:45:49 PM