India Annual Inflation Rate Slows to 13-Month Low

India's consumer prices increased by 4.31 percent year-on-year in September 2016, easing from a 5.05 percent growth in the previous month and missing market expectations of a 4.8 percent gain. It was the lowest inflation rate since August last year, as food cost rose at a slower pace.

Year-on-year, cost of food and beverages rose 4.12 percent (+5.83 percent in August), provisional estimates showed. The food index alone increased by 3.88 percent compared to 5.91 percent in the previous month. Upward pressure came from sugar (+25.77 percent from +24.75 percent in August), followed by pulses (+14.33 percent from +22.01 percent) and fruits (+6.07 percent from +4.46 percent); while cost of vegetables fell sharply (-7.21 percent from +1.02 percent).

Cost of clothing and footwear increased 5.19 percent year-on-year (from +5.21 percent in August); fuel and light rose 3.07 percent (from +2.49 percent); and housing prices went up 5.18 percent (from +5.29 percent).

The corresponding provisional inflation rates for rural and urban areas are 4.96 percent and 3.64 percent (5.87 percent and 4.22 percent respectively in August).

A year ago, the inflation rate was higher at 4.41 percent.

On a monthly basis, consumer prices fell 0.23 percent.

India Annual Inflation Rate Slows to 13-Month Low

Joana Ferreira |
10/13/2016 12:17:26 PM