India Inflation Rate Slows to 6-Month Low

Consumer prices in India went up 4.83 percent year-on-year in March of 2016, slowing from an upwardly revised 5.26 percent rise in February. The inflation rate eased for the second straight month, reaching the lowest figure since September last year and compared to market expectations of 5 percent as food prices rose at a slower pace.
Joana Taborda | 4/12/2016 1:29:55 PM
Year-on-year, cost of food and beverages rose 5.27 percent (5.52 percent in February), provisional estimates showed. The food alone index rose at a slower 5.21 percent compared to 5.3 percent in the previous month. The biggest rise came from pulses (up 34.15 percent from 38.3 percent in the previous month), followed by spices (9.58 percent from 9.87 percent in the previous month) and meat and fish (7.74 percent from 7.27 percent in the previous month). Prices of vegetables rose a meager 0.54 percent (0.7 percent in the previous month) while fruits went down 1.1 percent (-0.72 percent in the previous month). 

Cost of clothing and footwear went up 5.27 percent year-on-year (5.52 percent in February); fuel and light rose 3.38 percent (4.59 percent in February); and housing prices increased 5.31 percent (5.33 percent in December). 

The corresponding provisional inflation rates for rural and urban areas are 5.79 percent and 3.98 percent (6.05 percent and 4.3 percent respectively in February).

A year ago, the inflation rate was 5.25 percent.

For February of 2016, the inflation rate was revised to 5.26 percent from 5.18 percent.

India Inflation Rate Slows to 6-Month Low