India September Inflation Rate Rises to 14-Month High

India's retail price inflation rate rose to 3.99 percent year-on-year in September 2019 from an upwardly revised 3.28 percent in the previous month and above market expectations of 3.7 percent. It was the highest inflation rate since July last year, almost touching the central bank’s medium-term target of 4 percent, as food prices rose to an over 3-year high.

Food prices increased 5.11 percent from a year earlier in September 2019, the largest gain since August 2016. Additionally, the food & beverages index went up 4.70 percent, with main upward pressure coming from: vegetables (15.40 percent); meat & fish (10.29 percent); pulses & products (8.40 percent); egg (3.33 percent); spices (3.30 percent); and non-alcoholic beverages (3.21 percent). On the other hand, cost of sugar and confectionery declined 0.35 percent.

Among non-food products, prices increased for housing (4.75 percent); miscellaneous (4.45 percent); pan, tobacco and intoxicants (4.59 percent); and clothing and footwear (0.96 percent). Meantime, prices of fuel & light fell 2.18 percent.

The corresponding provisional inflation rates for rural and urban areas were 3.24 percent and 4.78 percent, compared with July's figures of 2.25 percent and 4.49 percent respectively.

On a monthly basis, consumer prices increased 0.55 percent in September, the same pace as in August.

India September Inflation Rate Rises to 14-Month High

MOSPI | Stefanie Moya |
10/14/2019 12:26:49 PM