India Inflation Rate Falls to 14-Month Low of 4.2%

Consumer prices in India increased 4.2 percent year-on-year in October of 2016, easing from an upwardly revised 4.39 percent rise in September, reaching a new low since August last year. Figures came in line with market expectations as food inflation eased for the third straight month to 3.32 percent.
Joana Taborda | 11/15/2016 12:28:25 PM
Year-on-year, cost of food and beverages rose 3.17 percent (+4.12 percent in September), provisional estimates showed. The food index alone increased by 3.32 percent compared to 3.96 percent in the previous month. Upward pressure came from sugar (+23.62 percent from +25.77 percent in September), pulses (+4.11 percent from +14.33 percent) and fruits (+4.42 percent from +6.07 percent); while cost of vegetables continued to fall (-5.74 percent from -7.21 percent).

Cost of clothing and footwear increased 5.24 percent year-on-year (from +5.19 percent in September); fuel and light rose 2.81 percent (from +3.07 percent); and housing prices went up 5.15 percent (from +5.18 percent).

The corresponding provisional inflation rates for rural and urban areas are 4.78 percent and 3.54 percent (5.04 percent and 3.64 percent respectively in September).

A year ago, the inflation rate was higher at 5 percent.

On a monthly basis, consumer prices rose 0.38 percent.

India Inflation Rate Falls to 14-Month Low of 4.2%