India Inflation June 2019

India

India: Consumer price inflation accelerates in June

July 16, 2019

In June, consumer prices rose 0.63% compared to the previous month, up from May’s 0.57% figure. June’s small acceleration was underpinned by higher food prices.

Consumer price inflation accelerated to 3.2% in June, up from 3.0% in May, and just matching market analysts’ expectations. As a result, inflation remained beneath the midpoint of the Reserve Bank of India’s (RBI) target range of 2.0% to 6.0%, potentially leaving the door open to another interest rate cut by the RBI at its next meeting on 5–7 August.

Wholesale prices increased 0.25% month-on-month in June, up from the revised 0.08% rise in May (previously reported: +0.25% month-on-month). June’s uptick was underpinned by higher prices for primary articles such as food and vegetables. Wholesale price inflation decelerated to 2.0% in June from 2.5% in May.

FocusEconomics Consensus Forecast panelists expect consumer price inflation to average 3.8% in FY 2019, which is down 0.1 percentage points from last month’s forecast. In FY 2020, the panel expects consumer price inflation to average 4.4%. Meanwhile, our panel projects wholesale inflation of 3.7% for FY 2019, up 0.1 percentage points from last month’s report. In FY 2020, our panel foresees wholesale inflation averaging 3.9%.


Author:, Economist

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India Inflation June 2019 0

Note: Annual and monthly variation of wholesale price index (WPI) and annual variation of consumer price index (CPI) in %.
Source: Ministry of Commerce and Industry and FocusEconomics calculations.


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