India: Consumer price inflation remains unchanged in May
June 12, 2019
In May, consumer prices rose 0.57% compared to the previous month, matching April’s figure. May’s increase was driven by higher food prices.
Consumer price inflation was 3.0% in May, matching April’s revised figure (previously reported: 2.9%) and marginally above analysts’ expectations. As a result, inflation remained beneath the midpoint of the Reserve Bank of India’s target range of 2.0% to 6.0%.
Wholesale prices increased 0.2% month-on-month in May, down from a 0.8% rise in April. May’s uptick was underpinned by higher prices for non-food articles, particularly crude oil. Wholesale price inflation decelerated to 2.5% in May from 3.1% in April. Subdued consumer and wholesale price inflation should give the Central Bank leeway to continue its easing cycle in the coming months.
Author: Oliver Reynolds, Economist