India Consumer Inflation Down to Record Low


Indian consumer inflation slowed for the second consecutive month to 6.46 percent in September of 2014, from a revised 7.73 percent in August. It is the lowest rate on record mainly driven by lower food prices.

Provisional estimates showed cost of food and beverages rose 7.56 percent yoy in September from a 9.16 percent increase in the previous two months. The food alone index rose 7.67 percent in September, down from a revised 9.35 percent increase in the previous month. 

Year-on-year, cost of vegetables rose at a slower 8.59 percent (15.15 percent in the previous month) and fruit prices increased 22.4 percent (from 22.48 percent). Prices of oils and fats were unchanged from last year and sugar cost rose a meager 0.64 percent.  

Cost of fuel and light rose 3.45 percent in September, down from a 4.15 percent increase in the previous month and cost of clothing and footwear slowed to 7.59 percent from 8.53 percent in August. 

The corresponding provisional inflation rates for rural and urban areas for September of 2014 are 6.68 percent and 6.34 percent. 

In September of 2013, the county’s inflation rate was recorded at 9.84 percent. Meanhile, Indian central bank targets consumer inflation at 8 percent in 2015 and 6 percent in 2016.

India Consumer Inflation Down to Record Low


Joana Taborda | joana.taborda@tradingeconomics.com
10/13/2014 1:39:53 PM