India Inflation Rate at 6-Month High of 2.92%

India's retail price inflation rate increased to 2.92 percent year-on-year in April 2019 from 2.86 percent in March and below market expectations of 2.97 percent. It was the highest inflation rate in six months, as food prices rose the most since July last year.

Food prices jumped 1.1 percent from a year earlier in April, after a 0.30 percent gain in the previous month. Additionally, the food & beverages index advenced 1.38 percent, following a 0.66 percent increase, with main upward pressure coming from: meat & fish (7.55 percent); non-alcoholic beverages (3.24 percent); vegetables (2.87 percent); prepared meals, snacks, sweets etc. (2.71 percent); egg (1.94 percent); cereals & products (1.17 percent); spices (0.80 percent); oils & fats (0.74 percent); and milk & products (0.42 percent). On the other hand, prices dropped for fruits (-4.89 percent); sugar & confectionery (-4.05 percent); and pulses & products (-0.89 percent).

Among non-food products, cost of fuel and light rose further (2.56 percent from 2.42 percent), while prices eased for miscellaneous (5.10 percent from 5.68 percent); pan, tobacco and intoxicants (4.27 percent from 4.61 percent); housing (4.76 percent from 4.93 percent); and clothing and footwear (2.01 percent from 2.59 percent).

The corresponding provisional inflation rates for rural and urban areas were 1.87 percent and 4.23 percent, compared with March's figures of 1.80 percent and 3.43 percent, respectively.

On a monthly basis, consumer prices increased 0.35 percent in April, slowing from a 0.36 percent rise in March. 

India Inflation Rate at 6-Month High of 2.92%

MOSPI | Stefanie Moya |
5/13/2019 12:24:12 PM