India Consumer Inflation Quickens to 13-Month High

Consumer prices in India grew 5.41 percent year-on-year in November of 2015, higher than a 5 percent rise in October and in line with market expectations. It is the highest inflation rate since October of 2014 boosted by a surge in food cost.

Year-on-year, cost of food and beverages rose 6.08 percent (5.34 percent in October), provisional estimates showed. The food alone index surged 6.07 percent compared to 5.25 percent in the previous month, also the highest since March. Cost of pulses jumped at a faster 46.08 percent (42.2 percent in September), followed by spices (10.53 percent from 9.82 percent in October), meat and fish (5.34 percent from 5.01 percent in October), vegetables (4 percent from 2.42 percent in October) and fruits (2.07 percent from 1.98 percent in October). In contrast, cost of prepared meal and snacks (6.69 percent from 6.83 percent in October), and milk (4.03 percent from 4.79 percent in October) rose at a slower pace. Prices of sugar and confectionery fell 8.62 percent. 

Cost of clothing and footwear went up 5.76 percent year-on-year (5.62 percent in October); fuel and light rose 5.28 percent (5.32 percent in October); and housing prices increased 4.95 percent (4.88 percent in September). 

The corresponding provisional inflation rates for rural and urban areas are 5.95 percent and 4.71 percent.

A year ago, the inflation rate was 4.38 percent. 

India Consumer Inflation Quickens to 13-Month High

Joana Taborda |
12/14/2015 1:49:06 PM