India: Inflation moderates in October
November 12, 2018
In October, consumer prices rose 0.29% from the previous month, contrasting the 0.07% fall in September. Higher prices for pan, tobacco and intoxicants; housing; and fuel and light all contributed to the uptick in October, whereas lower prices for food and beverages, and clothing and footwear had the opposite effect.
Inflation moderated to 3.3% in October, down from 3.8% in September and below market analysts’ expectations of 3.6%. This was primarily because prices for food and beverages declined. Core inflation, which excludes food and energy products, ticked up to 6.1% in October from 5.8% in September.
In October, the WPI rose 0.75% from the prior month, up from a revised 0.58% in September (previously reported: +0.67% month-on-month). October’s reading was primarily due to more expensive fuel and power. Wholesale price inflation accelerated slightly to 5.3% in October from 5.1% in September. Annual average wholesale inflation accelerated to 4.2% in October from 4.1% in September.
Author: Edward Gardner, Economist