Inflation in India
India - Inflation (end of period)
Consumer price inflation accelerates slightly in August
In August, consumer prices rose 0.49% compared to the previous month, down from July’s 0.91% increase. The increase was largely due to more expensive food and beverages, although a decrease in energy prices weighed on the overall reading.
Consumer price inflation accelerated to 3.2% in August from July’s 3.1% print. As a result, inflation remained below the 4.0% midpoint of the Reserve Bank of India’s (RBI) target range of 2.0%–6.0%.
Wholesale prices decreased 0.25% month-on-month in July, the latest month for which data is available, which is down from the revised 0.08% drop in June (previously reported: +0.25% month-on-month). July’s decrease was primarily due to lower prices for fuel and energy. Wholesale price inflation decelerated to 1.1% in July, down from 2.0% in June.
FocusEconomics Consensus Forecast panelists expect consumer price inflation to average 3.7% in FY 2019, which is down 0.1 percentage points from last month’s forecast. In FY 2020, the panel expects consumer price inflation to average 4.3%. Meanwhile, our panel projects wholesale inflation of 3.1% for FY 2019, down 0.6 percentage points from last month’s report. In FY 2020, our panel foresees wholesale inflation averaging 3.9%.
India - Inflation (eop) Data
|Inflation Rate (CPI, annual variation in %, eop)||8.2||5.3||4.8||3.9||4.3|
5 years of economic forecasts for more than 30 economic indicators.
India Inflation (eop) Chart
Source: Reserve Bank of India of China and FocusEconomics calculations.
|Bond Yield||6.55||-0.04 %||Sep 04|
|Exchange Rate||71.99||-0.09 %||Sep 04|
|Stock Market||36,725||-0.08 %||Sep 04|
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October 11, 2019
Industrial production fell 1.1% in year-on-year terms in August, contrasting July’s revised 4.6% increase (previously reported: +4.3% year-on-year). Most industrial sectors contributed to the slump in August, with output in the manufacturing sector dropping the most, followed by output in the electricity sector.
October 4, 2019
The Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) cut all monetary policy rates by 0.25 percentage points at its 1–4 October meeting, reducing the repo rate to 5.15%, the marginal standing facility to 5.40% and the reverse repurchase rate to 4.90%.
October 4, 2019
The composite Purchasing Managers’ Index (PMI) produced by IHS Markit sank to 49.8 in September from 52.6 in August, marking the first time in 19 months that it landed below the 50-threshold that separates contraction from expansion in the private sector.
September 13, 2019
Merchandise exports declined6.0% year-on-year in August, amounting to USD 26.1 billion, contrasting July’s 2.3% increase.
September 12, 2019
In August, consumer prices rose 0.49% compared to the previous month, down from July’s 0.91% increase.