India Inflation June 2018

India: Inflation reaches a five-month high in June

In June, consumer prices rose 0.58% from the previous month—more than the 0.51% rise recorded in May and representing the largest increase since November 2017. Higher prices for food and beverages drove the increase in June. Moreover, prices for pan, tobacco and intoxicants; clothing and footwear; and fuel and light also rose. On the other hand, prices fell for housing.

Inflation accelerated for the third consecutive month in June, hitting 5.0%, a five-month high. This was up from May’s 4.9%. Inflation was supported by higher prices across all major categories of goods and services in June compared to the same month in 2017. It was particularly driven by higher prices for pan, tobacco and intoxicants; housing; and fuel and light. Core inflation, which excludes food and energy products, picked up to 6.6% in June from 6.3% in May. This was partly due to a low base effect.

The wholesale price index (WPI) rose 1.10% from the prior month in June, more than the 0.94% increase in May. Wholesale inflation, meanwhile, accelerated in June and came in at 5.8%, up from 4.4% in May. The acceleration was driven by high fuel and energy prices and resulted in the highest inflation rate since December 2013. Annual average wholesale inflation accelerated to 3.5% in June from 3.1% in May.

India Inflation Forecast

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest