India Inflation Rate at 15-Month High of 4.88%

Consumer prices in India increased 4.88 percent year-on-year in November of 2017, higher than 3.58 percent in October and well above market expectations of 4.2 percent. It is the highest inflation rate since August of 2016, mainly due to rises in cost of vegetables and fuel.

Prices went up faster for food and beverages (4.41 percent from 2.26 percent in October). The food index alone rose 4.42 percent, above 1.9 percent in the previous month. Inflation accelerated for vegetables (22.48 percent from 7.47 percent) and fruits (6.19 percent from 5.05 percent) while prices of pulses fell more (-23.53 percent from -23.13 percent). 

Also, prices went up faster for housing (7.36 percent from 6.68 percent); fuel and light (7.92 percent from 6.36 percent) and clothing and footwear (4.96 percent from 4.76 percent).

The corresponding provisional inflation rates for rural and urban areas are 4.79 percent and 4.9 percent (3.36 percent and 3.81 percent respectively in October).

India Inflation Rate at 15-Month High of 4.88%

Joana Taborda |
12/12/2017 12:21:30 PM