India Consumer Inflation Quickens to 5%

Consumer prices in India grew 5 percent year-on year in October of 2015, compared to 4.41 percent in September. It is the highest inflation rate in in four months boosted by higher than expected rise in cost of food.

Year-on-year, cost of food and beverages rose 5.34 percent (4.29 percent in September), provisional estimates showed. The food alone index surged 5.25 percent compared to 3.88 percent in the previous month. Cost of pulses jumped at a faster 42.2 percent (29.76 percent in September), followed by spices (9.82 percent from 9.27 percent in September), fruits (1.98 percent from 0.94 percent in September), vegetables (2.42 percent from 0 percent in September). In contrast, cost of prepared meal and snacks (6.83 percent from 7.11 percent in September), meat and fish (5.01 percent from 5.59 percent in September) and milk (4.79 percent from 5.05 percent in September) rose at a slower pace. 

Cost of fuel and light rose 5.32 percent year-on-year (5.42 percent in September); cost of clothing and footwear went up 5.62 percent (6 percent in September) and housing prices rose 4.88 percent (4.74 percent in September). 

The corresponding provisional inflation rates for rural and urban areas are 5.54 percent and 4.28 percent.

A year ago, the inflation rate was 5.59 percent. The central bank targets inflation at 6 percent and expects it to reach 5.8 percent in January of 2016.

India Consumer Inflation Quickens to 5%

Joana Taborda |
11/12/2015 1:05:08 PM