India Inflation May 2019


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.

FocusEconomics Consensus Forecast panelists expect consumer price inflation to average 4.0% in FY 2019, which is unchanged 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 3.6% for FY 2019, unchanged from last month’s report. In FY 2020, our panel foresees wholesale inflation averaging 3.7%.

Author:, Economist

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India Inflation Chart

India Inflation May 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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