India Inflation Rate Jumps to 1-1/2-Year High
India's retail price inflation rate climbed to 4.62 percent year-on-year in October 2019, the highest in over a year, from the previous month's 3.99 percent and above market expectations of 4.25 percent. Inflation rose above the Reserve Bank of India's medium-term target of 4 percent for the first time since July 2018, following recent cuts in interest rates.
11/13/2019 1:24:14 PM
Food prices rose 7.89 percent in October (vs 5.11 percent in September), the largest annual gain since July 2016. Additionally, the food & beverages index went up 6.93 percent, with main upward pressure coming from: vegetables (26.10 percent) as onion and tomato prices jumped due to unseasonal rains, disruption in supply chain and acquisition restrictions on traders; pulses & products (11.72 percent); meat & fish (9.75 percent); egg (6.26 percent); fruits (4.08 percent); spices (3.86 percent); and milk & products (3.10 percent).
Among non-food products, prices increased for housing (4.58 percent); miscellaneous (3.45 percent); pan, tobacco and intoxicants (3.92 percent); and clothing and footwear (1.65 percent). Meantime, the prices of fuel & light fell 2.02 percent.
The corresponding provisional inflation rates for rural and urban areas were 4.29 percent and 5.11 percent, compared with September's figures of 3.24 percent and 4.78 percent respectively.
On a monthly basis, consumer prices were 0.96 percent higher in October.