India Inflation Rate Rises to 8-Month High

India's retail price inflation rate rose to 3.18 percent year-on-year in June 2019, the highest since last October, from 3.05 percent in the previous month and slightly below market expectations of 3.20 percent. Food prices were the biggest contributor to the price increase. Still, inflation remained below the Reserve Bank of India's medium-term target of 4 percent for the eleventh consecutive month.

Food prices rose 2.17 percent from a year earlier in June, the biggest gain in one year. Also, the food & beverages index went up 2.37 percent, with main upward pressure coming from: meat & fish (9.01 percent); vegetables (4.66 percent); non-alcoholic beverages (3.07 percent); prepared meals, snacks, sweets etc. (2.70 percent); pulses & products (5.68 percent); egg (1.62 percent); cereals & products (1.31 percent); spices (1.59 percent); oils & fats (0.74 percent); and milk & products (0.63 percent). By contrast, fruits prices dropped 4.18 percent.

Among non-food products, prices increased for housing (4.84 percent); miscellaneous (4.45 percent); pan, tobacco and intoxicants (4.11 percent); fuel and light (2.32 percent); and clothing and footwear (1.52 percent).

The corresponding provisional inflation rates for rural and urban areas were 2.21 percent and 4.33 percent, compared with May's figures of 1.86 percent and 4.51 percent respectively.

On a monthly basis, consumer prices went up 0.63 percent in June.

India Inflation Rate Rises to 8-Month High

MOSPI | Joana Ferreira |
7/12/2019 12:17:12 PM