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.
Author: Edward Gardner, Economist