Inflation in India
India - Inflation (end of period)
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 (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||6.92||-0.04 %||Jun 14|
|Exchange Rate||69.83||-0.09 %||Jun 14|
|Stock Market||39,452||-0.08 %||Jun 14|
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June 14, 2019
Annual merchandise export growth accelerated to 3.9% in May, up from the 0.6% growth in April.
June 12, 2019
In May, consumer prices rose 0.57% compared to the previous month, matching April’s figure.
June 12, 2019
Industrial production increased 3.4% in April in annual terms, up from March’s revised 0.4% increase (previously reported: -0.1% year-on-year) and marking the fastest pace of growth in six months.
June 6, 2019
As expected by market analysts, the Reserve Bank of India’s Monetary Policy Committee (MPC) cut all monetary policy rates by 0.25 percentage points at its 4–5 June meeting, reducing the repo rate to 5.75%, the marginal standing facility to 6.00% and the reverse repurchase rate to 5.50%.
June 5, 2019
The composite Purchasing Managers’ Index (PMI) produced by Nikkei and IHS Market was unchanged in May at April’s 51.7.