India Consumer Inflation Rises on New Base Year

India CPI inflation rose for the second consecutive month to 5.11 percent in January from 5 percent in the previous month, after the country changed the base year for calculating consumer prices.
Joana Taborda | 2/12/2015 12:32:01 PM
The base year was changed to 2012 from 2010 and lower weights were given to food and fuel while services like education and health became more important. 

In January of 2015, cost of food and beverages rose 6.13 percent, up from a 5 percent increase in December, provisional estimates showed. The food alone index rose 6.06 percent (4.78 percent in December). Cost of vegetables jumped 9 percent, after edging up 0.58 percent in December and fruit prices increased 10.62 percent (14.84 percent in the previous month). In contrast, price decreases were reported for sugar (-1.10 percent) and egg (-0.24 percent). 

Cost of fuel and light rose 3.74 percent, slightly up from 3.41 percent in December and cost of clothing and footwear slowed slightly to 6.15 percent (6.51 percent in the previous month). 

Education cost increased 7.26 percent; housing increased 5.11 percent and health went up 4.71 percent. Meanwhile, transport and communication prices fell 1.17 percent. 

The corresponding provisional inflation rates for rural and urban areas for January of 2015 are 5.25 percent and 4.96 percent. 

India Consumer Inflation Rises on New Base Year