India Consumer Inflation Above Forecasts

Consumer prices in India increased 4.41% yoy in September, following an upwardly revised 3.74% rise in August. It is the highest inflation rate in three months driven by food prices.
Joana Taborda | 10/12/2015 1:33:20 PM
Figures for August were revised upwards to show the inflation rate at 3.74 percent from an initial estimate of 3.66 percent.

Year-on-year, cost of food and beverages rose 4.29 percent in September, following a 2.92 percent increase in August, provisional estimates showed. The food alone index rose 3.88 percent compared to 2.2 percent in the previous month. Cost of pulses recorded the highest increase (29.76 percent), followed by spices (9.27 percent), prepared meal and snacks (7.11 percent), meat and fish (5.59 percent) and milk (5.05 percent). Cost of fruits edged up 0.94 percent and prices of vegetables were flat while sugar fell 12.91 percent. 

Cost of fuel and light rose at a slower 5.42 percent year-on-year (5.7 percent in August); cost of clothing and footwear went up 6 percent (5.77 percent in August) and housing prices rose 4.74 percent (4.68 percent in August). 

The corresponding provisional inflation rates for rural and urban areas for September of 2015 are 5.05 percent and 3.61 percent.

A year ago, the inflation rate was 5.63 percent. The central bank targets inflation at 6 percent and expects it to reach 5.8 percent in January of 2016.

India Consumer Inflation Above Forecasts