Inflation in India

India Inflation | Economic News & Forecasts

India - Inflation

Consumer price inflation remains unchanged in May

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%.

India - Inflation Data

2013  2014  2015  2016  2017  
Inflation Rate (CPI, annual variation in %)10.0  6.0  4.9  4.5  3.6  

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India Inflation Chart

India Inflation
Note: Annual average variation of consumer price index (CPI) in %.
Source: Reserve Bank of India of China and FocusEconomics calculations.

India Facts

Bond Yield7.01-0.04 %Jun 13
Exchange Rate69.53-0.09 %Jun 13
Stock Market39,741-0.08 %Jun 13

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