India: Inflation falls to lowest level since June in September
Inflation came in at 5.0% in September, which was down from August’s 6.8% and below market expectations. September’s figure marked the weakest inflation rate since June. The drop was broad-based, with lower price pressures recorded for food and beverages, fuel and light, and clothing and footwear.
Annual average inflation fell to 5.8% in September (August: 6.0%).
Lastly, consumer prices dropped 1.13% in September over the previous month, following August’s 0.05% fall. September’s result marked the weakest reading since December 2013.
ING’s Robert Carnell said:
“On the assumption that food prices revert to something close to where they started before the recent supply shocks […] headline inflation [could be] dropping into the lower half of the Reserve Bank of India’s (RBI) 2-6% inflation target range in the coming months.”