India Inflation December 2019

India

India: Consumer price inflation jumps in December

January 14, 2020

Consumer prices rose 1.21% in December compared to the previous month, up from 0.95% in November. The increase was largely due to more expensive food and beverages, which, as a category, account for over half of the weight of India’s consumer price basket.

Consumer price inflation accelerated to 7.4% in December from 5.5% in November, mainly due to surging food and beverage prices. As a result, inflation rose above the Reserve Bank of India’s (RBI) target range of 2.0%–6.0%.

Wholesale prices rose 0.41% in December from the previous month, up from the 0.25% increase in November. Wholesale price inflation, meanwhile, accelerated to 2.6% in December from 0.6% in November.

FocusEconomics Consensus Forecast panelists expect consumer price inflation to average 3.8% in FY 2019, which ends in March 2020. The forecast is up 0.3 percentage points from last month’s forecast. In FY 2020, the panel expects consumer price inflation to average 3.9%. Meanwhile, our panel projects wholesale inflation of 1.8% for FY 2019, down 0.5 percentage points from last month’s report. In FY 2020, our panel foresees wholesale inflation averaging 2.6%.


Author:, Economist

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India Inflation Chart


India Inflation December 2019

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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