India Inflation Rate Lowest in Near 1-1/2 Years

Annual consumer inflation in India declined to 2.33 percent in November of 2018 from an upwardly revised 3.38 percent in October and below market expectations of 2.8 percent. It is the lowest inflation rate since June of 2017 as food prices fell the most since the series began in 2012. The Reserve Bank of India revised down its inflation forecasts to 2.7 percent-3.2 percent for the period Oct 2018-March 2019, amid lower food and fuel prices.

Prices of food and beverages declined 1.69 percent and the food index alone dropped at a record 2.61 percent. Prices went down for vegetables (-15.59 percent), pulses and products (-9.22 percent), sugar and confectionery (-9.02 percent) and eggs (-3.92 percent) and edged up a meager 0.21 percent for fruits. 

Among non-food products, prices increased for pan, tobacco and intoxicants (6.14 percent); clothing and footwear (3.53 percent); housing (5.99 percent); fuel and light (7.39 percent); and miscellaneous (6.15 percent).

The corresponding provisional inflation rates for rural and urban areas were 1.71 percent and 3.12 percent, compared with October's figures of 2.82 percent and 1.04 percent respectively.

On a monthly basis, consumer prices rose 0.07 percent.

India Inflation Rate Lowest in Near 1-1/2 Years

Joana Taborda |
12/12/2018 12:22:22 PM